Disclosure Integration of Lean Six Pigma Principles..... 300 DISCLOSURE INTEGRATION OF LEAN SIX SIGMA PRINCIPLES IN SUSTAINABLE SUPPLY CHAIN IN POULTRY INDUSTRY

The poultry industry has been in the spotlight for its enormous potential economic development. However, poultry industry is still not implementing the concept of sustainability properly. There are still many wastes that have not been managed properly and there are still many problems in the supply chain that require more systematic handling. Many studies have shown that the implementation of Lean Six Sigma (LSS) and sustainability has positive results on the company's bottom line performance. This research tried to integrate the application of LSS principles and sustainability along the supply chain in the poultry industry in Indonesia. Data were collected from 4 listed poultry firms in Indonesia. The research method used SEM PLS with SmartPLS software. The results showed that supply chain security management system disclosure as the principle of LSS had a positive effect on the collaboration of supply chain disclosure and collaboration of supply chain disclosure had a positive effect on sustainability. The results also showed that risk management disclosure had a negative effect on the collaboration of supply chain disclosure and economic sustainability had a negative effect on environmental sustainability, but social sustainability had a positive effect on environmental sustainability. Based on the results of this study, there is a need to improve supply chain security management system and supply chain collaboration in order to advance sustainable poultry industry.


INTRODUCTION
Indonesian poultry industry, grew rapidly in the 1990s with the support of government regulations that made it easier for foreign investment to enter poultry sector (Dagri, 2016). The Value of Foreign Investment (VFI) in the poultry sector is the highest source of investment compared to other livestock sectors, about US$ 24.29 million in 2019. Domestic Investment Value (DIV) in the poultry sector is also the highest source of investment in other livestock sectors about IDR 875.76 billion in 2019 (Kementan, 2019b).
High investment value of the poultry sector has boosted the growth of poultry industry with composition of PT/CV/Firma of 97.75%, 1% of foundations, 0.75% of BUMN and 0.5% of cooperatives (BPS, 2020). The growth of the livestock business encourages increased production of broiler chickens which have a relatively faster growth rate. In 2015, Indonesian broiler chicken production has reached 3 million tons (Kementan, 2019b) which causes Indonesian broiler chicken supply exceed the total domestic consumption needs. This supply and demand imbalance occurs as a result of a lack of good coordination between supply chain actors. High production activity of broiler chickens has also resulted in other problems such as increased Green House Gasses (GHG) and waste in the form of feces and odors. The increase in GHG causes climate change in Indonesia and the world. Climate change has caused many regions to experience a crisis in the availability of clean water and resources.
Indonesian poultry industry has a great potential to be developed (Jamarizal et al., 2018;Saptana & Yofa, 2016). The high production of Indonesian broiler chicken meat has brought Indonesia to the 8th position as the largest chicken meat producer in the world (Kementan, 2019a), but Indonesian broiler chicken meat has not been able to compete with other countries products. The import value of Indonesian poultry input and output products is greater than the value of exports. It causes the importance of efficiency and systemic improvements in the supply chain of the poultry industry.
Currently, operational management development methods are developing rapidly with the application of Total Quality Management (TQM) such as Lean and Six Sigma (Garza-Reyes, 2015). Sustainability in the context of company management is also the focus of stakeholders where the company can have a positive impact on its economy,  (Dora & Gellynck, 2015;Drohomeretski et al., 2014;Sakumoto et al., 2019). Miller et al. (2010) suggested that LSS and sustainability had a positive impact on bottom line performance.
This study aims to analyze the factors that influence the disclosure of the integration of the LSS principles in the supply chain of the poultry industry to achieve sustainability with approach of annual report of poultry disclosure.

RESEARCH METHOD
This study uses secondary data from poultry farm issuers in 2014-2019 obtained from the Indonesia Stock Exchange and livestock company websites. The data collected includes data related to risk management disclosures, disclosure of supply chain security management systems and company sustainability in economic, social and environmental aspects. Data collection is done by giving a binary scale of 0-1 on each indicator. A scale of 0 is given to the undisclosed indicator and a scale of 1 is given to the indicator that is disclosed. This study refers to (Cherrafi, Elfezazi, Govindan, et al., 2016) which used integrated LSS and green framework to achieve sustainability. Waste reduction can affect financial performance while the integration of LSS and sustainability will improve the company's financial and operational performance. To get an effective result, the right method is needed. Sobral et al., (2013) found that companies implementing ISO 9001 on quality management systems and ISO 14000 on environmental management have a positive impact on the environment. The application of ISO 31000 on risk management will facilitate supply chain management. All issuers of poultry farming have ISO 9001: 2015 certification. For this reason, this study tries to integrate the application of LSS principles with supply chain management and sustainability as illustrated in Figure 1. This study then develops an existing model using risk management disclosure and supply chain security management system disclosure as variables that describe the implementation of LSS and integrate it with sustainability was measured using the SEM PLS method ( Figure   2). Based on Figure 2, the hypotheses in this study are:

H1
: There is an effect of risk management disclosure on supply chain collaboration disclosures. H2 : There is an effect of supply chain security management system disclosure on supply chain collaboration disclosure. H3a : There is an effect of supply chain collaboration disclosure on economic sustainability performance H3b : There is an effect of supply chain collaboration disclosure on environmental sustainability performance. H3c : There is an effect of supply chain collaboration disclosure on social sustainability performance. H4 : There is an effect of disclosure of economic sustainability performance on environmental sustainability performance. H5 : There is an effect of disclosure of social sustainability performance on environmental sustainability performance The analysis was carried out by examining the influence between variables and analyzing the indicators that had a significant effect on each variable. The indicator used in the supply chain collaboration disclosure variable is supply chain collaboration which refers to the supplier development clause in the SNI Award 2020. The indicators contained in the 2020 SNI Award are similar indicators that are also used by other researchers (Jiang, 2009;Saptana & Yofa, 2016). Risk management disclosure variables use risk management indicators that refer to SNI ISO 31000: 2018. The variable of supply chain security management system disclosure uses supply chain security management  (Martens & Carvalho, 2016;Narimissa et al., 2020).

RESULTS AND DISCUSSION
SEM PLS is a widely used estimation method (Benitez et al., 2020) (Table 2) shows a reliable value because it is at a value of 0.99-1.00 which is above 0.70. The value of all AVE variables is above the number 0.50 which means that it is validly converging.  Table 3 show that risk management disclosure has an insignificant negative effect on supply chain collaboration disclosures. The disclosure of the supply chain security management system has a significant positive effect on the disclosure of supply chain collaboration (t> 1.96), which means that H1 is rejected and H2 is accepted. The disclosure of supply chain collaboration has a significant positive effect on economic sustainability, social sustainability and environmental sustainability (t> 1.96) which means that H3a, H3b and H3c are accepted. Economic sustainability has no effect on environmental sustainability (t <1.96), which means that H4 is rejected. Meanwhile, social sustainability has a significant positive effect on environmental sustainability (t> 1.96), which means that H5 is accepted. The value of R square for economic sustainability is 0.196, which means that the variation in economic sustainability that can be explained

DISCUSSION
Hypothesis testing shows H1 is rejected where risk management disclosure does not affect supply chain collaboration. This is different from de Oliveira's (2017) research who found that ISO 31000 can be used as a model for managing risk in the supply chain.
H2 accepted means that increased disclosure of the supply chain security management system will increase supply chain collaboration. The supply chain security management system based on SNI ISO 28000: 2009 aims to manage supply chain security by maintaining product quality and making continuous improvements. Good supply chain management will improve performance, coordination and communication along the supply chain, so that supply chain management can be more efficient. Good communication between supply chain actors will maximize the exchange of information along the supply chain. Thus, producers can predict well the amount of community demand for poultry products. Accurate forecasting is very useful to avoid over-supply of broiler chickens in the community. The three pillars of sustainability, namely economic, social and environmental, are strongly influenced by disclosure of supply chain collaboration (H3a, H3b, H3c). Good disclosure of supply chain collaboration will enhance cooperation not only for the exchange of information, but also the sharing of risks and benefits. This collaboration aims in the long term as an effort to maintain the economic, social and environmental sustainability of the related stakeholders.
Economic sustainability does not have a significant effect on environmental sustainability (H4). This is in line with research Younis & Chaudhary (2020) which mentions trade off in economic sustainability and environmental sustainability. Increasing the scale of production in order to achieve economic efficiency can lead to increased use of resources and energy. Increasing the scale of production in the form of high broiler population numbers will certainly increase the amount of waste which, if not managed

CONCLUSION
Research on LSS integration and sustainability conducted in the poultry industry was investigated using the SEM PLS method. The variables used are risk management disclosure, supply chain security management system disclosure, supply chain collaboration disclosure and the three pillars of sustainability. The results show that the risk management disclosure variable has no effect on the supply chain collaboration disclosure. The disclosure of the supply chain security management system has a significant effect on supply chain collaboration. Supply chain collaboration has a significant effect on economic sustainability, social sustainability and environmental sustainability. Social sustainability has a significant effect on environmental sustainability, while economic sustainability has no significant effect on environmental sustainability. To achieve sustainability, companies need to focus on disclosure of supply chain collaboration and disclosure of supply chain management. The research results can be concluded as in Figure 3.
Based on the results, suggestions that can be given to improve the performance of the poultry farming industry are that the company needs to improve its supply chain security management system. This security management system will be easier to implement because all sample companies have been supported by ISO / SNI 9001: 2018 quality management certification. Companies need to strengthen communication and coordination of supply chain from upstream to downstream, to improve supply chain performance. Improving communication and listening to customer needs is an important aspect of quality management. The implementation of good quality management will be able to meet customer satisfaction and improve the sustainability of the company. Supply chain collaboration can be realized by sharing knowledge, product quality standards and