THE INFLUENCE OF VENDOR CAPABILITY ON SUPPLY CHAIN COLLABORATION AND FIRM PERFORMANCE WITH SUPPLIER INTEGRATION AS VARIABLE MODERATING
Abstract
Fuel supply shortages and price fluctuations pose significant challenges to the sustainability of fuel station business performance. These conditions require companies to strengthen vendor capabilities, integrate with supply chain partners, improve inventory management, and collaborate with them. This study aims to analyze the influence of vendor competency on vendor-managed inventory and supply chain collaboration, and the influence of vendor-managed inventory and supply chain collaboration on business performance, with supplier integration as a moderating variable. This study used a quantitative, survey-based approach. Data were collected via a Google Form questionnaire from 70 permanent fuel station employees. The sampling technique used was purposive sampling, while data analysis was conducted using Partial Least Squares-Structural Equation Modeling (PLS-SEM). The results show that vendor competency has a positive and significant effect on vendor-managed inventory but not on supply chain collaboration. Supplier integration has a positive and significant effect on vendor-managed inventory and supply chain collaboration. However, supplier integration moderates the relationships between vendor competency, vendor-managed inventory, and supply chain collaboration in a negative direction. In addition, vendor-managed inventory and supply chain collaboration have been shown to have a positive and significant effect on business performance. These findings suggest that improvements in fuel station business performance are more effectively achieved by strengthening inventory management systems, integrating information, and collaborating across the supply chain, rather than simply improving individual vendor competencies.
Downloads
References
Ardakani, D.A., Soltanmohammadi, A. and Seuring, S. (2023). The impact of customer and supplier collaboration on green supply chain performance. Benchmarking: An International Journal, 30(7), 2248-2274. https://doi.org/10.1108/BIJ-12-2020-0655
Baah, C., Opoku Agyeman, D., Acquah, I.S.K., Agyabeng-Mensah, Y., Afum, E., Issau, K., Ofori, D. and Faibil, D. (2022). Effect of information sharing in supply chains: understanding the roles of supply chain visibility, agility, collaboration on supply chain performance. Benchmarking: An International Journal, 29(2), 434-455. https://doi.org/10.1108/BIJ-08-2020-0453
Basana, S.R., Suprapto, W., Andreani, F. & Tarigan, Z.J.H. (2022). The impact of supply chain practice on green hotel performance through internal, upstream, and downstream integration. Uncertain Supply Chain Management, 10(1), 169-180, DOI: 10.5267/j.uscm.2021.9.010
Basana, S.R., Ubud, S., Malelak, M.I. & Tarigan, Z.J.H. (2023). The effect of key user capability on supply chain digital and flexibility in improving financial performance. Uncertain Supply Chain Management, 11(1), 267-276, DOI:10.5267/j.uscm.2022.9.016
Beheshti, H.M., Oghazi, P., Mostaghel, R., Hultman, M. (2014). Supply chain integration and firm performance: An empirical study of Swedish manufacturing firms. Compet. Rev. 2014, 24, 20–31
Chang, W., Ellinger, A.E., Kim, K., Kate & Franke, G.R. (2016). Supply chain integration and firm financial performance: a meta-analysis of positional advantage mediation and moderating factors. Eur. Manag. J. 34(3), 282–295. https://doi.org/10.1016/j.emj.2015.11.008
Chilkapure, A.J.S.N. & Pillai, V.M. (2019). Literature review on supply chain collaboration: comparison of various collaborative techniques. Journal of Advances in Management Research, 16(4), 537-562. https://doi.org/10.1108/JAMR-10-2018-0087
Colin, M., Galindo, R., & Hernández, O. (2015). Information and communication technology as a key strategy for efficient supply chain management in manufacturing SMEs. Procedia Computer Science, 55, 833-842
De Giovanni, P. (2021). Smart supply chains with vendor managed inventory, coordination, and environmental performance. European Journal of Operational Research, 292(2), 515-531, https://doi.org/10.1016/j.ejor.2020.10.049
Doan, T.T.T. (2020). Supply chain management drivers and competitive advantage in the manufacturing industry. Uncertain Supply Chain Management, 8(3), 473–480, https://doi.org/10.5267/j.uscm.2020.5.001
Echtelt, F., Wynstra, F., Weele, A., & Duysters, G. (2008). Managing Supplier Involvement in New Product Development: A Multiple-Case Study. The Journal of Product Innovation Management, 25(2), 180–201. https://doi.org/10.1111/j.1540-5885.2008.00293.x
Flynn, B.B., Huo, B., Zhao, X. (2010). The impact of supply chain integration on performance: a contingency and configuration approach. J. Oper. Manag. 28(1), 58–71. https://doi.org/10.1016/J.JOM.2009.06.001
Fayezi, S. and Zomorrodi, M. (2015). The role of relationship integration in supply chain agility and flexibility development: An Australian perspective. Journal of Manufacturing Technology Management, 26(8), 1126-1157. https://doi.org/10.1108/JMTM-11-2014-0123
Golpîra, H. (2020). Optimal integration of the facility location problem into the multi-project multi-supplier multi-resource Construction Supply Chain network design under the vendor managed inventory strategy. Expert Systems With Applications, 139, 112841. https://doi.org/10.1016/j.eswa.2019.112841
Golpîra, H., Tirkolaee, E.B., Maihami, R., & Karimi, K. (2023). A robust Tri-Objective optimization to supply chain configuration under Vendor-Managed inventory policy considering supply chain visibility. Expert Systems with Applications, 224, 119916, https://doi.org/10.1016/j.eswa.2023.119916
Guimarães, CM, Crespo de Carvalho, J. and Maia, A. (2013). Vendor managed inventory (VMI): evidences from lean deployment in healthcare. Strategic Outsourcing: An International Journal, 6(1), 8-24. https://doi.org/10.1108/17538291311316045
Han, J., Lu, J. & Zhang, G. (2017). Tri-level decision making for decentralized vendor-managed inventory. Journal of Informal Sciences. https://dx.doi.org/10.1016/j.ins.2017.08.089
Hwang, D., & Min, H. (2015). Identifying the drivers of enterprise resource planning and assessing its impacts on supply chain performances. Industrial Management & Data Systems, 115(3), 541-569. https://doi.org/10.1108/IMDS-10-2014-0284
Hu, B., Meng, C., Xu, D., & Son, Y.-J. (2018). Supply chain coordination under vendor managed inventory-consignment stocking contracts with wholesale price constraint and fairness. International Journal of Production Economics, 202, 21-31, https://doi.org/10.1016/j.ijpe.2018.05.009
Istiningrum, A. A., Sono, & Heitasari, D. N. (2023). Reducing Pertamax inventory costs at a gas station by eliminating shortage using probabilistic economic order quantity. Advances in Engineering Research, 225. https://doi.org/10.2991/978-94-6463-284-2_50
Jacobs, M.A., Yu, W., Chavez, R. (2016). The effect of internal communication and employee satisfaction on supply chain integration. Int. J. Prod. Econ. 171, 60–70. https://doi.org/10.1016/J.IJPE.2015.10.015
Kim, H.J. (2017). Information technology and firm performance: the role of supply chain integration. Operations Management Research 10(1–2), 1–9. https://doi.org/10.1007/s12063-016-0122-z
Lee, J.-Y., Cho, R.K., & Paik, S.-K. (2016). Supply chain coordination in vendor-managed inventory systems with stockout-cost sharing under limited storage capacity. European Journal of Operational Research, 248(1), 95-106, https://doi.org/10.1016/j.ejor.2015.06.080
Liu, S., Wang, L., & Huang, W. (2017). Effects of process and outcome controls on business process outsourcing performance: Moderating roles of vendor and client capability risks. European Journal of Operational Research, 260, 1115-1128, http://dx.doi.org/10.1016/j.ejor.2017.01.020
Mabrouk, N.B. (2020). Interpretive structural modeling of critical factors for buyer-supplier partnerships in supply chain management. Uncertain Supply Chain Management, 8(3), 613–626. https://doi.org/10.5267/j.uscm.2020.2.002
Meuthia, M., Lita, R. P., & Rahmahdian, R. (2023). An explanatory framework of palm oil panic buying behavior in Indonesia: Do perceived scarcity and perceived price being enablers? Cogent Business & Management, 10(3), 2258624. https://doi.org/10.1080/23311975.2023.2258624
Panahifar, F., Byrne, P.J., Salam, M.A. and Heavey, C. (2018). Supply chain collaboration and firm’s performance: The critical role of information sharing and trust. Journal of Enterprise Information Management, 31(3), 358-379. https://doi.org/10.1108/JEIM-08-2017-0114
Pirmanta, P., Tarigan, Z., & Basana, S. (2021). The effect of ERP on firm performance through information quality and supply chain integration in Covid-19 era. Uncertain Supply Chain Management, 9(3), 659-666. DOI:10.5267/j.uscm.2021.5.004
Qiao, R. and Zhao, L. (2023). Reduce supply chain financing risks through supply chain integration: dual approaches of alleviating information asymmetry and mitigating supply chain risks. Journal of Enterprise Information Management, https://doi.org/10.1108/JEIM-01-2023-0016
Riofiandi, D. & Tarigan, Z.J.H. (2022). The effect of supplier collaboration on company performance through lean manufacture and inventory control. Petra International Journal of Business Studies, 5(1), 74-86, DOI: https://doi.org/10.9744/ijbs.5.1.74-86
Sainathan, A. & Groenevelt, H. (2019). Vendor managed inventory contracts – coordinating the supply chain while looking from the vendor’s perspective. European Journal of Operational Research, 272, 249-260. https://doi.org/10.1016/j.ejor.2018.06.028
Siagian, H. & Tarigan, Z.J.H. (2021). The central role of IT capability to improve firm performance through lean production and supply chain practices in the COVID-19 era. Uncertain Supply Chain Management, 9(4), 1005-1016, DOI:10.5267/j.uscm.2021.6.012
Siagian, H., Tarigan, Z.J.H., & Basana, S.R. (2022). The role of top management commitment in enhancing competitive advantage: The mediating role of green innovation, supplier, and customer integration. Uncertain Supply Chain Management, 10(2), 477-494, DOI: 10.5267/j.uscm.2021.12.003
Taleizadeh, A.A., Shokr, I., Konstantaras, I., & VafaeiNejad, M. (2020). Stock replenishment policies for a vendor-managed inventory in a retailing system. Journal of Retailing and Consumer Services, 55, 102137, https://doi.org/10.1016/j.jretconser.2020.102137
Tampubolon, R. B., Zai, S. N. P., & Agustin, H. (2023). The impact of fuel oil increase on stock prices: an event study approach on the IDX80 Indonesia Stock Exchange 2022. International Journal of Economics, Business and Accounting Research (IJEBAR), 7(3), 979–988. https://doi.org/10.29040/ijebar.v7i3.10167
Tarigan, Z.J.H. & Siagian, H. (2021). The effects of strategic planning, purchasing strategy and strategic partnership on operational performance. Uncertain Supply Chain Management, 9(2), https://doi.org/10.5267/j.uscm.2021.2.006
Tarigan, Z.J.H., Jiputra, J.A. & Siagian, H. (2021). The effect of supply chain practices on retailer performance with information technology as moderating variable. International Journal of Data and Network Science, 5(1), 47-54, DOI:10.5267/j.ijdns.2020.11.003
Tarigan, Z.J.H., Tanuwijaya, N.C. & Siagian, H. (2020). Does top management attentiveness affect green performance through green purchasing and supplier collaboration? Academy of Strategic Management Journal, 19(4), 1-10
Teng, T., Tsinopoulos, C. and Tse, Y.K. (2022). IS capabilities, supply chain collaboration and quality performance in services: the moderating effect of environmental dynamism. Industrial Management & Data Systems, 122(7), 1592-1619. https://doi.org/10.1108/IMDS-08-2021-0496
Vafaei-Zadeh, A., Ramayah, T., Hanifah, H., Kurnia, S. & Mahmud, I. (2020). Supply chain information integration and its impact on the operational performance of manufacturing firms in Malaysia. Information & Management, 57, 103386, https://doi.org/10.1016/j.im.2020.103386
Vu, T.H., Tran, H.L., Le, T.T., Nguyen, M.D., & Duong, B.N. (2020). Relationship between supply chain activities in Vietnamese retailer business enterprises. Uncertain Supply Chain Management, 8, 321-330.
Yuan, Y., Liu, L. & Liu, L. (2022). How does information integration enhance SMEs’ credit quality: the mediating role of supply chain capabilities. Industrial Management & Data Systems, 122(2), 544-561. https://doi.org/10.1108/IMDS-10-2020-0621
Copyright (c) 2026 Rosalia Maria da Silva, Zeplin Jiwa Husada Tarigan, Hotlan Siagian
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish in this journal agree to the following terms:
- Authors retain unrestricted copyright and full publishing rights. The authors grant the Publisher the right of first publication, with the work simultaneously licensed under the terms and conditions of the Creative Commons Attribution 4.0 International License.
- Authors can enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) before and during the submission process, as it can lead to productive exchanges and earlier and more extraordinary citations of published work.
