Implementation of the Internet of Things (IoT) in the supply chain (SC) is critical in encouraging supply chain process integration (SCPI) for retail industry companies, which will have implications for the development of supply chain capabilities (SCC) which in turn will affect company performance improvement. Information Communication Technology (ICT), in this case, IoT, is an enabler for increasing the competitive advantage of the retail business. Yana Ernawan disclosed this.
“IoT implementation will improve the performance of retail companies by enhancing their supply chain capabilities to meet customer demands and experience more innovative products and services. In the industrial era 4.0, the retail industry has entered a completely different business ecosystem. ICT in the digital era has major implications for the retail industry’s value chain because it can change how products are designed, manufactured and delivered to customers,” said Yana.
Yana Ernawan conveyed this during a doctoral promotion session in the field of Administrative Science, Postgraduate Program in the Faculty of Administrative Sciences-University of Indonesia, Thursday, 29 December 2022, which has successfully defended its dissertation entitled: “The Effect of Internet Of Things (IoT) Capability on Process Integration and Capabilities Supply Chain on Retail Company Performance”.
Furthermore, Yana explained that the retail industry is essential to the people’s economy. Only one economy in this world can move with retail activity. However, due to the coronavirus pandemic, which has been reported since the end of 2019 in China, the growth of the global retail industry has slowed and plummeted to minus 2.8% in 2020. This results from consumers’ reluctance to spend more amid the pandemic and economic uncertainty. However, in 2021 it was reported that the performance of global retail industry companies had again increased by 12.1%, although this growth is expected to slow down again to 3.4% in 2026. This global phenomenon is impacting Indonesia. The Central Statistics Agency (BPS) noted that the performance of the wholesale and retail sectors decreased drastically to minus 8.32 points in 2020 compared to 2019.
Novelty research or state of the arts (SOTA) from Yana’s promo ends research is to reconstruct the results of previous research conducted by Devass et al. l (2018) and Huo (2012) with research conducted by Chen and Landry (2009:32), namely by including supply chain integration process variables into the research framework, where no researcher has done this before.
“The results of the first study show that concerning aspects of the relationship between IoT capability variables on supply chain (SC) performance, research findings indicate that IoT implementation has a significant effect on the company’s internal supply chain (SC), while IoT implementation on supply chains (SC) suppliers and the customer has no effect. The results of the second study show that in retail companies, the IoT capability variable in the supply chain integration process (SCPI); The results of the study show that the implementation of IoT in the company’s internal supply chain (SC) affects the company’s internal supply chain process integration (SCPI), “Yana added.
The results of the third study show that the integration of the company’s internal supply chain processes affects the integration of supplier supply chain processes but does not affect the integration of customer supply chain processes and the company’s internal supply chain process integration (SCPI) affects the company’s internal supply chain capability (SCC). This condition does not occur in external Supply Chain Process Integration. Furthermore, the study’s results also show that establishing Supply Chain Capability (SCC) within the company’s internal affects the company’s performance, both related to operational and financial aspects.
On this occasion, Yana Ernawan made several recommendations: First, the implementation of IoT in the retail industry in Indonesia can significantly encourage the integration of the company’s internal supply chain processes (SCPI), which in turn can boost the company’s internal supply chain (SCC) capabilities, and ultimately affect performance. Company (KP). From a practical perspective, this is very beneficial because it can increase the competitiveness of retail industry companies in Indonesia. Therefore it is recommended that IoT is an option that needs to be implemented immediately in retail companies in Indonesia.
Second, retail business managers and microscopic and medium-scale businesses must be given a new understanding and awareness of the importance of implementing digital technology (IoT and e-commerce) in managing process integration and developing supply chain capabilities to drive sustainable corporate competitiveness. Third, the need for support from regulators for retail business actors, small and medium scale businesses, both in the form of policies and training related to the implementation of information and communication technology, in this case, the use of the IoT platform, so that these small and medium retail business actors will be able to strengthen its business performance and be able to compete correctly and be protected from the threat of digital technology disruption.
In this doctoral promotion, Dr. Yana Ernawan became a graduate of the 24th FIA UI Doctoral Program and the 212th graduate of the Doctoral Program in Administrative Sciences with the promoter Prof. Dr. Chandra Wijaya, M.Sc. M.M. with co. Promoter, namely Dr. Fibria Indriati Dwi Liestiawati, M.Sc.
