The Effect of Supplier Relationship Management on Firm Performance through Supply Chain Risk and Practice

Abstract

Garments provide a high contribution to economic growth outside of non-oil and gas and have a large workforce. The manufacturing industry in Indonesia has become a mainstay in delivering economic growth. This study obtained the results of distributing questionnaires from garment retailers regarding the company's relationship with suppliers as many as 100 respondents. The study used a partial least square to test the validity, reliability, and research hypotheses. The results of data processing obtained validity and reliability tests that met the requirements. The results showed that supplier relationship management directly affects supply chain risk management, supply chain practices, and firm performance. Supply chain risk management has affected supply chain practice and firm performance. The practical supply chain can significantly increase firm performance. This study contributes to building supply chain risk and supplier relationship management.