The Application of Agency Theory in Supply Chain Finance: A Case of Indonesian Manufacturing Firms.

Abstract:

The prime objective of the current study is to explore the relationship between supply chain operational performance and firm supply chain management in the reference of agency theory. To further explain the role of agency theory, in the supply chain management we have examined the direct and indirect impact of supply chain operational performance on firm supply chain management. The SMART-PLS is used to achieve the objective of the current stud. The data is collected from the operation managers, production managers and finance managers of manufacturing firms listed in Indonesian Stock Exchange. The results of the study have shown a great deal of agreement with our proposed hypothesis. The corporate governance index comprising of board characteristics appears as a moderator in the relationship between supply chain operational performance and firm supply chain management. The results of the current study are also providing support to agency theory and resource base theory. The study which is among pioneering studies on the issue will be helpful for policy makers and managers in understanding the role of agency theory in supply chain management.

Keywords: Agency Theory, Supply chain management, Indonesia.

Cite As:

Fitri, H., Elmanizar, Nugraha, A. T., Yakub, A., & Cahyono, B. P. (2019). The Application of Agency Theory in Supply Chain Finance: A Case of Indonesian Manufacturing Firms. International Journal of Supply Chain Management, 8(3), 23–32.

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Role Budget Participation and Budget Slack on Supply Chain Operational Performance: Evidence from Indonesian Textile Industry.

Abstract:

Budgets are instruments that managers can use to help them in completing their business activities. Now various countries are focusing on budget participation to boost supply chain activities. The objective of the current study is to examine the role of budget participation in supply chain operational performance among Indonesia textile industry. Moreover, the moderating role of the management control system was also examined. Interactive control system and boundary control system taken as moderating variable. For this purpose, data were gathered from textile companies of Indonesia. Employees of these companies were selected as respondents. Total of 500 questionnaires were distributed to collect the data. Partial Least Square (PLS) were utilized as statistical tool to analyse the data. Results shows that budget participation increases the supply chain operational performance. Moreover, the management control system also has a significant role in supply chain operational performance.

Keywords: Supply chain, budget participation, budget slack, management control system, operational performance.

Cite As:

Hakimah, Y., Nugraha, A. T., Fitri, H., Manihuruk, C., & Hasibuan, M. (2019). Role Budget Participation and Budget Slack on Supply Chain Operational Performance: Evidence from Indonesian Textile Industry. International Journal of Supply Chain Management, 8(3), 10–22.

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