A nexus between green intelectual capital, supply chain integration, digital supply chain, supply chain agility, and business performance

Abstract

Purpose: This study aims to examine and analyze the nexus between Green Intellectual Capital (GIC), Supply Chain Integration (SCI), Digital Supply Chain (DSC), Supply Chain Agility (SCA) dan Business Performance (BP). It also aims to examine and analyze the mediating influence of several variables: (a) the mediating role of SCI on the relationship between GIC and BP, (b) the mediating role of DSC on the relationship between GIC and BP dan (c) the mediating role of SCA on the relationship between GIC and BP.

Design/methodology: Quantitative approach is carried out using a survey to the owners or managers, and owners and managers of courier service SMEs in two provinces, namely East Java and Daerah Istimewa Yogyakarta (DIY). These two provinces are known to have a courier service SMEs in a large amount because of its population density and large business transaction. The number of respondents analyzed are 183 SMEs. This study uses purposive sampling with certain criteria. The approach of the model is using Structural Equation Modelling with AMOS 23.

Findings: (1) GIC has a significant positive influence on SCI; (2) GIC does not have a significant positive influence on BP; (3) GIC has a significant positive influence on DSC; (3) GIC has a significant positive influence on SCA; (4) SCI has a significant positive influence on BP; (5) DSC has a significant positive influence on BP; (6) SCA does not have a significant positive influence on BP. The results of mediation analysis conclude that: (a) SCI mediates the influence between GIC on BP; (b) DSC mediates the influence between GIC on BP; and (c) SCA mediates the influence between GIC on BP.

Research limitations/implications: Selecting respondents using purposive sampling is feared to not be able to generalize the population in the two provinces, namely East Java and DIY. The study also uses a self-administered survey, especially on assessing business performance, thus it is feared that there might be a bias, although it has been compared to similar competitor SMEs. Courier service SMEs also have limitation in implementing digital SC, thus they do not quite understand the questionnaire asked even though the researcher has provided assistance during the research.

Managerial Implication: Companies need to improve GIC and DSC through various strategies and policies such as training, workshop, and other intellectual development routinely and intensively. It can be done by cooperating with other parties such as universities and the government. This step should be taken in order to achieve harmony in all activities of supply chain management (SCM). Companies should also carry out an effective and efficient learning process for companies to move more agile and dynamic, therefore BP can increase sustainably and not static.

Theoretical Implication: This study provides a theoretical contribution, especially on the nexus between GIC, SCI, DSC, SCA, and BP. DSC becomes a very interesting strategic aspect when it is implemented in the current era, where all the business process cannot be separated from digital-based technology.

Originality/value: Studies in Asia, moreover in Indonesia, which integrates GIC and associate it with business performance mediated by SCI, DSC, and SCA is still rare. In this era, there is a need for an increase of digital competition in all human resources of courier service SMEs in Indonesia, especially when the SMEs have not had a good SCM system. Digital supply chain requires GIC, and they must be fast and agile to adapt to technology and environmental turbulence. Keywords: Green Intelectual Capital (GIC), Supply Chain Integration (SCI), Digital Supply Chain (DSC), Supply Chain Agility (SCA) and Business Performance (BP).