Open AccessThe effect of supply network and management control system on the efficiency and profitability of manufacturing companies
Author(s) -
Slamet Riyadi,
Mulyanto Nugroho,
Donny Arif
Publication year - 2021
Publication title -
uncertain supply chain management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.395
H-Index - 16
eISSN - 2291-6830
pISSN - 2291-6822
DOI - 10.5267/j.uscm.2021.7.004
Subject(s) - profitability index , competition (biology) , construct (python library) , business , control (management) , path analysis (statistics) , operations management , computer science , economics , finance , ecology , artificial intelligence , machine learning , biology , programming language
This research was conducted to analyze the influence of supply networks and management control systems on manufacturing companies' efficiency and profitability in East Java, Indonesia. With increasing competition, it takes the design of a system integrated to obtain profitability of the company. The study uses a quantitative descriptive method with a survey approach using a questionnaire data collection tool. Data analysis is operated using the theory of path analysis to determine the magnitude of the value of each construct calculated in the test equipment. From the results of the tests that have been conducted, only the supply network has no significant effect on efficiency. At the same time, other variables have a close and meaningful relationship. The study concluded that only one construct of the five hypotheses had an insignificant influence on bound variables. The main finding of this study is that companies should also have sensitivity to the social environment created as part of the supply network, as it can reduce the value of the Company's profitability if not designed appropriately and accurately.