PENGARUH KAPABILITAS PEMASOK TERHADAP KEPERCAYAAN DAN KINERJA OPERASIONAL PEMASOK PADA PERUSAHAAN MIKRO DAN KECIL (IMK) KABUPATEN BANTUL

This study examines the influence of suppliers capability toward company�s trust and the influence of company�s trust on the operational performance of suppliers. The study conduct two capabilities as independent variable: operational flexibility capabilities and collaboration capabilities. Supplier's operational performance is measured through 3 criteria: quality, delivery and cost. This study uses survey method on small and micro enterprises (SME�s) in handicraft manufacturing industries as respondent. The research methodology used Structural Equation Modelling (SEM) using Partial Least Square (PLS) software with a sample of 106 SME�s in Bantul regency, Yogyakarta. The results show that a significant influence between capabilities flexibility and collaboration capabilities on company�s trust. Trust also significantly influence on the operational performance of supplier