Enterprise risk management and supply chain effectiveness: Evidence in the Indonesian electricity project

Abstract

The research aimed to know the influence of long-term relationships, information sharing, Cooperation, and integration process in partial on the supply chain effectiveness of the EPC Steam Power Plant project in the Province of North Sulawesi. It was also to know whether enterprise risk management moderates the influence, long-term relationship, information sharing, Cooperation, and integration process toward supply chain effectiveness. The employees who became the sample in the supply chain activities of the steam power plant project in North Sulawesi were 250 people, 149 of whom were proportionally from the project owner. The research uses the data analysis technique using Structural Equation Modelling-Partial Least Square. The result of the study indicated that long-term relationships, information sharing, Cooperation, and integration process partially have a positive and significant influence on supply chain effectiveness. In addition, enterprise risk management proved to moderate the impact of information sharing. Still, it needed to moderate the effect of a long-term relationship, Cooperation, and integration process on the supply chain effectiveness of the EPC Steam Power Plant Sulut-3 project.