Proceedings of the 10th International Conference on Operations and Supply Chain Management, 2020

ISBN: 9786239555108


MAXIMIZING VALUE CREATION IN THE NEW ECONOMY THROUGH COLLABORATIVE RELATIONSHIPS AND SOURCING MODELS

Deni Sepdiana
Institut Teknologi Sepuluh Nopember

Nyoman Pujawan
Department of Technology Management, Institut Teknologi Sepuluh Nopember

The shifts in business environment since the internet era have created new economy that is more complex, more technology-based, and highly competitive as characterized by high customers’ demand of value creation. This study researched the potentials for maximizing value creation through collaborative buyer-supplier relationship to adapt better to the new economy. The research was carried out as a case study at an upstream oil and gas company, which applies collaborative relationship process to create value out of its relationship with strategic suppliers. The empirical study followed qualitative as well as quantitative methods. The qualitative research was done through literature review while quantitative part was carried out using primary data collected through a questionnaire, from which five hypotheses have been defined and tested. Path analysis and bootstrapping test were employed to test the role of collaborative relationship in mediating the effect of trust and commitment on value creation. The result suggested the case company to move to the right side of relational models along the sourcing continuum by adopting more output and/or outcome-based economic models. The implementation of collaborative relationship process needs to be reinforced to the extent that it is run in more collaborative manner so as to boost trust and commitment. Challenges on contractual issues, benefit sharing, and resource constraints should be well mitigated to allow better process execution. All in all, to create and capture maximum value, collaborative relationship should be run in a way that stimulate maximum trust and commitment.

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@InProceedings{Sepdiana2020_OSCMConference_440,
    author = {Sepdiana, Deni and Pujawan, Nyoman},
    title = {MAXIMIZING VALUE CREATION IN THE NEW ECONOMY THROUGH COLLABORATIVE RELATIONSHIPS AND SOURCING MODELS},
    booktitle = {Proceedings of the 10th International Conference on Operations and Supply Chain Management},
    year = {2020},
    doi = {NaN}
}

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