THE EFFECT OF TOP MANAGEMENT COMMITMENT ON PERFORMANCE THROUGH SUPPLY CHAIN PRACTICES AND RESPONSIVENESS

Abstract

Companies need to improve their operational performance to be able to compete in the global realm. Increasing the company's operational performance can be improved by implementing supply chain practices (SCP) and supply chain responsiveness (SCR). Implementing SCP and SCR requires commitment from top management. Top management commitment enables effective implementation of SCP and SCR in improving the company's operational performance. This study took data from medium and large-scale manufacturing companies in East Java with a workforce of more than 100 people. Respondents of this study were 81 employees with a minimum work experience of 2 years, with data analysis using partial least square (PLS) to test the research hypothesis. The results of data processing found that the top management commitment affects the SCP and SCR. This is because management has shown its commitment by providing the required human resources. Top management commitment does not directly affect the company's operational performance. The reason is, communication from top management is not effectively established in the context of the company in Surabaya, so it does not increase operational performance.