STRATEGIC ORIENTATION AND SUPPLY CHAIN QUALITY MANAGEMENT ON MSME’S QUALITY PERFORMANCE: CASE OF EARTHENWARE KASONGAN

Abstract

Previous studies have found that MSME’s performance can be influenced by many factors. On the other hand, a very dynamic market development requires companies to have the right strategic orientation and create a quality supply chain. Therefore, this study aims to analyze the relationship of strategic orientation, supply chain quality management and MSME’s quality performance. Empirical result is obtained through the distribution of questionnaires to 250 earthenware MSME’s owners in Kasongan, by proportionate stratified random sampling. The study conducted structural equation modeling to test the proposed hyphoteses. The result show that strategic orientation have a significant effect on MSME’s quality performance and supply chain quality management is able to moderate the relationship between strategic orientation and MSME’s quality performance. This study is the first empirical test to examine this framework in MSMEs. The study results may help MSMEs to implement strategic orientation and supply chain quality management to develop MSME’S quality performance.