The integration of supplier and customer: The role of trust as a mediator on supply chain performance in small retail stores

Abstract

This study aims to investigate the integration of suppliers and customers with the role of trust (TR) as a mediator on supply chain performance in small retail stores. The sampling technique uses purposive sampling to represent the total sample used, 170 outlets or respondents and data analysis using programs with SmarPLS. The finding of this study stated that the effect of supplier integration (SI) on customer integration (CI) and the effect of CI in addition to TR and on SCP are all stated to have a positive and significant effect. However, Customer Integration has a negative and not significant effect on supply chain performance (SCP) through TR. Novelty of this study is the implementation of supply chain integration for development in the retail business sector, especially in Indonesia. Then, this study shows integration as a communication aspect of collaboration between companies. Implication of this study is useful for franchise management and small retail shop owners in mutually beneficial collaboration in developing Micro, Small and Medium Enterprises (SMSMEs) so that their businesses can develop, survive and be sustainable growth in the future.