The effects of legal-political factors and market competition on supply chain performance: some findings from firms in a free trade zone

This paper investigates the effects of legal-political factors and market competition on supply chain performance. The data were collected from firms in the electrical and electronics (E&E) sector in an Indonesian free trade zone (FTZ) on the island of Batam. The E&E firms were chosen because of their significant contribution to Indonesian exports. The sampling of this study was E&E firms involved in exporting activities. As part of survey research, hypothesis-testing was undertaken to explain the variance in the legal-political factors and market competition to predict the two measurements of supply chain performance of the E&E firms in Batam. Since structural equation modelling (SEM-PLS) path modelling 2.0 works efficiently with small sample sizes and complex models, this analytical tool was employed in the study. The findings reveal that legal-political factors and market competition were positively significant on supply chain performance-efficiency and supply chain performance-flexibility. This study suggests that firm success is not necessarily tied to the size of its investment. Rather, it is the interrelationship amongst the factors that influences the supply chain.

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  • English

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  • Accession Number: 01603452
  • Record Type: Publication
  • Files: TRIS
  • Created Date: May 25 2016 11:07AM