Determinants of Company Performance with Supply Chain Risk Management as an Intervening Variable: Empirical Studies on BUMN Construction in Indonesia

  • Murti Widyaningsih
  • Tri Widyastuti
  • Apollo Daito
  • Bambang Purwoko

Abstract

BUMN construction companies are required to be competent to maintain the quality of the company by having good performance. Due to the phenomenon of declining financial performance and the phenomenon of outsourcing, a system is needed which is a synergy between SCM and risk management, that is Supply Chain Risk Management (SCRM). This study aims to further explore the supply chain risks that occur in state-owned construction companies in Indonesia by developing a system that can control risk and play an important role in Vendor Trust, Contractor-Vendor Relationship and Top Management Involvement to measure company performance. The data collection was carried out using a survey method using questionnaires and interviews. Respondents were selected using the purposive sampling method, that experts on Indonesian BUMN construction projects using the Smart PLS analysis method. The results of the study concluded that Vendor Trust has no effect on Supply Chain Risk Management. This is related to the existence of Law No.2 of 2017 reinforced by Minister of BUMN No.08 of 2019 which regulates the readiness of database infrastructure and Vendor criteria. Based on this regulation, a Vendor Management System was created that applies ratings, sanctions and Blacklists to Vendors, if there are errors or even a shortage of Vendor expertise documents, Unverified will occur and the impact on billing to contractors will be hampered so that trust can increase mutually beneficial relationships in long-term partnerships hard to do. Contractor-Vendor Relationship and Top management Involvement influence SCRM. Vendor trust, Contractor-Vendor Relationship and Top Management Involvement influence company performance after being mediated by Supply Chain Risk Management.


 

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Published
2023-09-01
How to Cite
WIDYANINGSIH, Murti et al. Determinants of Company Performance with Supply Chain Risk Management as an Intervening Variable: Empirical Studies on BUMN Construction in Indonesia. International Journal of Business and Technology Management, [S.l.], v. 5, n. 3, p. 133-142, sep. 2023. ISSN 2682-7646. Available at: <https://myjms.mohe.gov.my/index.php/ijbtm/article/view/23742>. Date accessed: 13 june 2024.
Section
Articles