The Mediating Role of Inventory Management in the Relationship Between Supplier Relationship and Organizational Performance: A Study on Electronics SMEs in Ambon City

Hulawa Theresia Waileruny

doi:10.59890/ijmbi.v3i5.198

Authors

Hulawa Theresia Waileruny University of Pattimura

DOI:

https://doi.org/10.59890/ijmbi.v3i5.198

Keywords:

Supplier Relationship, Inventory Management, Organizational Performance, Supply Chain Management

Abstract

This study aims to analyze the influence of supplier relationships on organizational performance with inventory management as a mediating variable in electronic businesses in Ambon City. The research approach uses a quantitative method with a sample of 51 electronic business actors. Data collection was conducted by distributing questionnaires to business owners or managers, and data analysis was conducted using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The results show that supplier relationships have a positive and significant effect on inventory management (p-value = 0.001) and organizational performance (p-value = 0.000); inventory management also has a significant effect on organizational performance (p-value = 0.026). Further findings indicate a significant indirect effect between supplier relationships and organizational performance through inventory management (p-value = 0.030). Theoretically, these results reinforce previous findings that effective supplier relationship management and inventory control contribute to increased organizational efficiency, productivity, and profitability. This study provides practical implications for businesses in the archipelago to strengthen collaboration and trust with suppliers and develop inventory management systems that are adaptive to dynamic market needs.

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