THE IMPORTANCE OF FINANCIAL FLOW DIGITALIZATION AND SUPPLY CHAIN INTEGRATION IN INCREASING COMPETITIVENESS THROUGH SUPPLY CHAIN RESILIENCE
Abstract
This study aims to analyze the effects of digitalization of financial flows in the supply chain and supply chain integration on firm competitive advantage through supply chain resilience in manufacturing companies in East Java. This study uses a quantitative, survey-based approach. Data were collected through questionnaires from respondents working in medium- and large-scale manufacturing companies who met the criteria of having at least 3 years of work experience and understanding the company's supply chain activities. Data analysis was conducted using the Structural Equation Modeling-Partial Least Squares (SEM-PLS) method. The results show that digitalization of financial flows in the supply chain has a positive and significant effect on supply chain integration and resilience. However, digitalization of financial flows does not directly affect a firm's competitive advantage. Supply chain integration has been shown to affect supply chain resilience and a firm's competitive advantage. The research findings also show that supply chain resilience has a positive and significant effect on a firm's competitive advantage. These results confirm that digitalization of financial flows in the supply chain does not directly create competitiveness but rather serves as a supporting capability that strengthens supply chain integration and resilience. Thus, companies need to manage financial digitalization, supply chain integration, and supply chain resilience in an integrated manner to build a more sustainable competitive advantage.
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