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The Effect of Process Innovation on Organizational Commitment in Supply Chain Management

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This paper examined the effect of process innovation on organizational commitment in supply chain management. Adjustment capability, forecast accuracy and customer service were the proxy for process innovation in supply chain management. Emotional commitment, normative commitment and ongoing commitment, on the other hand, served as proxy for organizational commitment in supply chain management (SCM). Structured equation modeling (SEM) and confirmatory factor analysis (CFA) were used to test th hypothesis using AMOS statistics program. Based on the analysis of 180 cases in the electric and electronic, machinery and equipment and distribution sectors, the following results were found. First, the adjustment capability of process innovation has a positively significant influence on the emotional commitment, normative commitment and ongoing commitment of supply chain management. Second, the forecast accuracy of process innovation has a positively significant influence on the emotional commitment, normative commitment and ongoing commitment of supply chain management. Third, customer service of process innovation has a positively significant influence on emotional commitment, normative commitment and ongoing commitment of supply chain management.

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