What Factors Impact the Relationship Between the Paper Industry and Paper Chemical Suppliers to Enhance the Paper Industry’s Competitiveness?

Daisy Ade Riany Diem; Marimin Marimin; Machfud Machfud; Elisa Anggraeni

doi:10.5935/jetia.v12i59.3538

Autores/as

Daisy Ade Riany Diem Agro-industrial Engineering Department, Faculty of Agricultural Technology, IPB University, Indonesia. http://orcid.org/0000-0002-1151-4328 (no autenticado)
Marimin Marimin Agro-industrial Engineering Department, Faculty of Agricultural Technology, IPB University, Indonesia. http://orcid.org/0000-0002-9415-5008 (no autenticado)
Machfud Machfud Agro-industrial Engineering Department, Faculty of Agricultural Technology, IPB University, Indonesia. http://orcid.org/0000-0003-2370-9058 (no autenticado)
Elisa Anggraeni Agro-industrial Engineering Department, Faculty of Agricultural Technology, IPB University, Indonesia. http://orcid.org/0000-0002-3018-4627 (no autenticado)

DOI:

https://doi.org/10.5935/jetia.v12i59.3538

Resumen

The Ministry of Industry of the Republic of Indonesia has positioned the pulp and paper industry as a strategic sector through the implementation of competitiveness measures that strengthen the industry's ability to contend with free trade. Buyer-supplier relationships are the cornerstone of economic cooperation in various business transactions, established on collective agreement between two parties based on mutual trust. This study examines the factors influencing buyer-supplier relationships between the paper industry and paper chemical suppliers in West Java Province, Indonesia. Data collected from eight paper industry companies and six paper chemical suppliers were analyzed using the Structural Equation Modeling - Partial Least Square (SEM-PLS) method. Interviews were also performed to gather pertinent data from qualitative viewpoints. This study’s findings confirm that business ethics, relational governance, and service quality simultaneously and positively and significantly influence buyer-supplier relationships and the paper industry’s competitiveness. Product knowledge, logistic flexibility, quality, commitment, trust, collaboration, and joint problem solving are among the critical factors for sustaining buyer-supplier relationships. Meanwhile, cost efficiency, supporting industries, and government regulation were identified as major considerations in enhancing the paper industry’s competitiveness.

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Biografía del autor/a

Marimin Marimin, Agro-industrial Engineering Department, Faculty of Agricultural Technology, IPB University, Indonesia.

Marimin earned his B.Sc. degree in agro-industrial technology from IPB University, Bogor, Indonesia, in 1984. He earned his M.Sc. degree in computer science from the University of Western Ontario, Canada, in 1990 and his Ph.D. degree in engineering science from Osaka University, Japan, in 1997. Since 2003, he has been a professor in systems engineering with IPB University. His research interests are intelligent and fuzzy expert systems, intelligent decision support systems, and sustainable supply chain management. Marimin is a member of the Indonesian Engineer Association as well as Indonesia Logistic and Supply Chain Management and the Institute of Electrical and Electronics Engineers (IEEE)
Machfud Machfud, Agro-industrial Engineering Department, Faculty of Agricultural Technology, IPB University, Indonesia.

Machfud earned his B.Sc. degree from IPB University, Bogor, Indonesia, in 1977. He earned his M.Sc. degree from Bandung Institute of Technology, Indonesia, in 1987 and his Ph.D. degree from IPB University, Indonesia, in 2001. The majority of his research topics are agroindustry production systems, agroindustry supply chain systems, and agroindustry development systems
Elisa Anggraeni, Agro-industrial Engineering Department, Faculty of Agricultural Technology, IPB University, Indonesia.

Elisa Anggraeni earned her B.Sc. degree in agro-industrial engineering from Gajah Mada University, Yogyakarta, Indonesia, in 1997; her M.Sc. degree in 2003; and her Ph.D. degree from Delft University of Technology, Netherlands, in 2014. Her research interests are innovation studies, social network analysis, and technology forecasting.