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Why Supply Chain Integration Matter for SME’s Innovation Performance?

Muchammad Afif Yahya (), Samuel Kenneth Jonathan and Darjat Sudrajat
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Muchammad Afif Yahya: Bina Nusantara University Jakarta
Samuel Kenneth Jonathan: Bina Nusantara University Jakarta
Darjat Sudrajat: Bina Nusantara University Jakarta

A chapter in New Perspectives and Paradigms in Applied Economics and Business, 2025, pp 293-313 from Springer

Abstract: Abstract Small—and medium-sized businesses (SMEs) constitute a fundamental cornerstone of the Indonesian economy, making a significant contribution to businesses, GDP, and employment. Nevertheless, numerous small—and medium-sized enterprises have not yet reached the most effective innovation procedures. This study aims to examine how managerial commitment (MC) and digitalization (D) influence innovation performance (IP), with supply chain integration (SCI) acting as a mediator. The study utilized a quantitative research strategy, employing probability sampling for data collecting and SEM-PLS for data analysis. A sum of 138 small—and medium-sized business proprietors who are residents of the Jabodetabek region comprise the research sample. The research findings indicate that digitization and management commitment exert a beneficial influence on innovation performance, with supply chain integration as a mediator. This research model is expected to fill the gaps in previous research and provide guidance for SMEs to address the evolving demands of innovation, as well as adapt sustainable practices in dynamic environments and technologies.

Keywords: Supply chain integration; Digitalization; Management commitment; Innovation performance; Indonesia (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-031-77363-1_20

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DOI: 10.1007/978-3-031-77363-1_20

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