The role of supply chain management on Indonesian small and medium enterprise competitiveness and performance

Abstract

The purpose of this study is to analyze the effect of supply chain management on competitive advantage in SMEs, the effect of competitive advantage on company performance in SMEs, and the influence of supply chain management on company performance mediated by competitive advantage in SMEs. This study uses quantitative methods and data analysis techniques based on Structural Equation Modeling using SmartPLS 3.0 software. The sample selection method uses non-probability sampling methods. Online questionnaires were sent to 340 SMEs respondents, the next step is to evaluate the returned 320 questionnaires. The results indicate that supply chain management had a significant influence on company performance and competitive advantage. Competitive Advantage also had a significant influence on company performance and played a mediate influence between supply chain management and company performance. The company's ability had a positive effect on competitive advantage and finally, adequate company capabilities had an impact on competitive advantage.

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