Hotlan Siagian
Fakultas Ekonomi Universitas Kristen Petra Jl. Siwalankerto 121-131, Surabaya 60236

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Journal : Jurnal Teknik Industri

The Effect of Top Management Involvement on Supply Chain Risk Management through Buyer-Supplier Relationship Siagian, Hotlan; Tarigan, Zeplin Jiwahusada; Hee, Han Tae
Jurnal Teknik Industri Vol 20, No 2 (2018): December 2018
Publisher : Institute of Research and Community Outreach - Petra Christian University

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (305.219 KB) | DOI: 10.9744/jti.20.2.105-112

Abstract

This paper aims to examine the role of the buyer-supplier relationship in improving the impact of top management involvement in the supply chain risk management. The study used 55 export-oriented manufacturing companies domiciled in East Java of Indonesia, and three respondents from top management level represented each company. Of 55, 44 companies have completed the questionnaires which means the response rate of 80%. Data collection used a questionnaire designed with a five-item Likert scale. Data analysis used the partial least square technique with Smart-PLS software version 3.0 to examine the hypotheses. The finding revealed that top management involvement affects supply chain risk management, top management involvement affects the buyer-supplier relationship, and buyer-supplier relationship affects supply chain risk management. The last finding is that buyer-supplier relationship empirically the effect of top management involvement. This paper paves the way for the manager in improving supply chain risk management by practicing top management involvement and development of a relationship with the supplier.