By
Fenina Mahardika Putri 13112094
BACHELOR’S DEGREE in
BUSINESS ADMINISTRATION
BUSINESS ADMINISTRATION AND HUMANITIES
SWISS GERMAN UNIVERSITY EduTown BSD City
Tangerang 15339 Indonesia
STATEMENT BY THE AUTHOR
I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.
Fenina Mahardika Putri
____________________________________________
Student Date
Approved by:
Moch. Riyadh Rizky Adam, S.T., M.S.M
____________________________________________
Thesis Advisor Date
Eric Jos Nasution, MBA ,MA, Ph.D
____________________________________________
Dean Date
The Effect of Supply Chain Management Practices towards Operational Performance and Organizational Performance of New Established Retail :
PT.Aeon Indonesia By
Fenina Mahardika Putri
Moch. Riyadh Rizky Adam, S.T., M.S.M SWISS GERMAN UNIVERSITY
Supply chain management has played an important role in retail organizations, one of the key driver of business success in today’s challenging market. One of the potential valuable ways of securing competitive advantage is through enhancing operational and improving performance since the competition is no longer among companies, but among supply chains. This research aims to analyze the effect of Supply Chain Management Practices towards Operational Performance and Organizational Performance of a new established retail in Indonesia. This research develops four dimensions of SCM practices (strategic supplier partnership, customer relationship, the level of information sharing and quality of information sharing). This research has been performed in one of the biggest Japan’s retailing group which established its first mall in Indonesia last year. The data for this study were collected from 50 employees of PT. Aeon Indonesia from selected divisions related to SCM. These relationships proposed in the framework and the causal relations were tested and analyzed using SEM (Structural Equation Modeling). The result has proven that there is strong relationship between Supply Chain Management Practices, Operational performance and Organizational Performance. On the other hand, Operational performance has an influence on Organizational Performance. Therefore in order to achieve great performance in financial and marketing in the long-term, the organization should construct an effective Supply Chain Management.
© Copyright 2016 by Fenina Mahardika Putri
All rights reserved
DEDICATION
I dedicate this thesis to my superb parent and sisters who have supported me all the way since the beginning of my study.Your love, care, support and trust are indefinable with words, thank you for everything. I would also like to dedicate this thesis to my advisor Mr.
Moch. Riyadh Rizky Adam, S.T., M.S.M, who has always share his knowledge and time to guide me throughout my thesis and inspired me with his quote "Don't talk, Act. Don't say, Show. Don't promise, Prove".
ACKNOWLEDGEMENTS
If a thousand words cannot describe a picture, even thousand pictures will not be enough to describe my feeling when this report finished. Nothing would be more relieving than getting one step closer to get my Bachelor Degree in Business Administration. The endless fatigue and bitter lessons taken during the long hours of doing this thesis had convinced me that only bless of Allah SWT had made me survived until now.
If Columber needed to thank Queen Isabel who made it possible for him to find a way to the new world, then there will be many “kings” and “Queens“ that I find had contributed much in my success to reach a gate to the next phase of my life. With all respect and modesty, I would like to express my gratitude to the following people who have made the completion of this thesis possible.
I would like to thank my parent for their love and support throughout my life. Thank you for giving me strength and faith in my determination to find my inner potentials. To my sisters Septiana and Anggita, thanks for being my role model, cheerleading squad and sounding board of ideas.
My thesis advisor, Moch. Riyadh Rizky Adam, S.T., M.S.M and Dr.Rer.Nat.Linus Pasasa as my statistics advisor, I would like to express my deepest gratitude to Mr.Rizky for your critical eye, constructive criticism, your encouragement and understanding has been invaluable during the process of writing this thesis until the end. Mr.Linus has always inspired me with his, patience, knowledge, guidance, motivation has made it possible for me to accomplish this thesis.
To My English Lecturer, Jane Sweed who always help me with my grammatical error, regardless of your tight schedule, yet, you did an amazing touch up for my thesis.
Special thanks to my friends, Stefanny, Mita, Stella, Laksmi, Anja, Atria and Dara for your support throughout the entire process of writing this thesis. I look forward to continuing our relationships in the future. Thanks to all my classmates of IBA batch 2012, thanks for sharing your life and friendship with me throughout this amazing 4 years.
I would like to express my gratitude to PT.Aeon Indonesia, especially to Mrs.Fifi Andayani , Mr.Demak Tambunan and Mr.Sobani Teng who allowed me to conduct my research there and helped me providing data and information needed and also to all the employees who participated in the questionnaires for the purpose of this research.
Finally, I would like to thank all of you whose name is not mentioned in this acknowledgments. The completion of this thesis is only possible with the help of all of you.
TABLE OF CONTENTS
Page
STATEMENT BY THE AUTHOR ... 2
ABSTRACT ... 3
DEDICATION ... 5
ACKNOWLEDGEMENTS ... 6
TABLE OF CONTENTS ... 8
LIST OF FIGURES ... 11
LIST OF TABLES ... 12
CHAPTER 1 - INTRODUCTION ... 14
1.1 Background ... 14
1.2 Research Problem ... 23
1.3 Research Question ... 29
1.4 Research Objectives ... 30
1.5 Scope and Limitation ... 31
1.6 Significance of Study ... 32
CHAPTER 2 – LITERATURE REVIEW ... 33
2.1 Framework of Thinking ... 33
2.1.1 Theoritical Perspectives ... 34
2.1.2 Concept & Definitions of Supply Chain Management ... 35
2.1.3 Supply Chain Management / Measurements ... 37
2.1.4 Strategic Supplier Partnership ... 38
2.1.5 Customer Relationship ... 38
2.1.6 Level of Information Sharing ... 39
2.1.7 Quality of Infornation Sharing ... 40
2.1.8 Operational Performance ... 41
2.1.9 Organizational Performance ... 43
2.2 Previous Studies ... 44
2.4 Research Model ... 49
2.5 Research Hypothesis ... 50
CHAPTER 3 – RESEARCH METHODOLOGY ... 51
3.1 Research Process ... 51
3.2 Type of Study ... 52
3.3 Unit of Analysis ... 53
3.4 Population & Sampling Planning ... 53
3.4.1 Population Target ... 54
3.4.2 Sampling Method ... 56
3.4.3 Sampling Size ... 57
3.5 Time Frame of Study ... 58
3.6 Data Source & Collection ... 59
3.6.1 Type of Data ... 59
3.6.2 Questionnaire Development ... 61
3.6.3 Data Collection Method ... 65
3.7 Variable Operationalization ... 66
3.8 Data Analysis Technique ... 68
3.8.1 Instrument Test ... 68
3.8.2 Reliability ... 70
3.8.3 Validity ... 71
3.8.4 Pre-testing ... 73
3.8.5 Post-testing ... 74
CHAPTER 4 –RESULTS & DISCUSSION ... 75
4.1 Brief of Company Background ... 75
4.2 Descriptive Analysis & Respondent ... 77
4.2.1 Gender ... 77
4.2.2 Age Composition ... 77
4.2.6 Work of Unit / Department ... 79
4.3 Instrument test ... 80
4.3.1 Pre-testing ... 80
4.3.1.1Validity for Pre-testing... 80
4.3.1.2 Reliability for Pre-testing ... 83
4.3.2 Post-testing ... 84
4.3.2.1 Validity for Post-testing ... 84
4.3.2.2 Reliability for Post-testing ... 87
4.4 Structural Equation Modelling (SEM) ... 89
4.4.1 Path Diagram ... 89
4.4.2 Measurement Model ... 90
4.4.3 Path Diagram Output ... 91
4.4.4 Hypothesis Analysis ... 97
CHAPTER 5 – CONCLUSION AND RECCOMENDATIONS ... 102
5.1 Conclusion ... 102
5.2 Recommendations ... 105
5.3 Implication for Further Research ... 108
BIBLIOGRAPHY ... 109
GLOSSARY ... 114
APPENDIX ... 115
CURRICULUM VITAE ... 127
