The Impact of Supply Chain Integration and Trust on Supply Chain Performance: Evidence from Indonesia Retail Sector

Abstract

Purpose: This study is to determine the impact of supply chain integration and trust on supply chain performance. Design/Methodology/Approach: The research was conducted empirically on supply chain activities at Indomaret outlets in Indonesia and as a representative of outlets with a total sample of 145 outlets. Factor analysis and multiple linear regression using the SPSS program with version 25 for data analysis. Findings: The finding of this study reveals that all variables of supply chain integration are supplier integration (SI), customer integration (CI), process integration (PI), and trust (TR), both partially and simultaneously are stated to have a significant effect on supply chain performance (SCP). Practical Implications: Based on the results the suggestion is the company must integrate the internal processes and continue by integrating with external companies, namely supplier integration and customer integration or distributor. Original/value: Find novelty of this study is implementing supply chain collaboration for development in the business retail sector, especially in Indonesia. Secondly, this study shows collaboration as a communication aspect like formal and informal contact.