The Role of Integration Processes on Supply Chain Flexibility and Supply Chain Agility in a Dynamic Environment: Evidence from the Food and Beverage Manufacturing in Indonesia
Abstract
This research examines how integrating processes affects the flexibility and agility of supply chains within Indonesia's food and beverage sector, considering the moderating effect of a dynamic environment. Data were gathered from 107 companies in Indonesia's food and beverage sector using purposive sampling technique. A structured questionnaire gathered insights on process integration, supply flexibility, supply chain agility, and the dynamic environment. Statistical methods analyzed the relationships among these variables. Process integration positively influences supply chain flexibility and agility in Indonesia, moderated by a dynamic environment. However, the direct impact of supply flexibility on supply chain agility and the moderating role of a dynamic environment between process integration and supply flexibility were not supported. This study centers on the food and beverage industry in five Indonesian provinces with major port hubs. The findings may not apply to other sectors or regions. Emphasizing process integration within food and beverage companies enhances flexibility and agility, especially in dynamic environments. Prioritizing supply chain integration improves responsiveness to market changes and customer needs. This research offers concrete evidence on the essential role of process integration in improving supply chain flexibility and agility, emphasizing the influence of a dynamic environment as a moderating factor. This offers valuable insights for researchers and practitioners.
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