Optimizing organizational performance: Revealing the impact of supply chain management through innovation capabilities and supply chain performance

Abstract

This study investigates the effect of supply chain management on capability, supply chain performance, and organizational performance. This study also examines innovation capability and supply chain performance to mediate supply chain management's impact on organizational performance. This study was conducted on 96 Yogyakarta pottery SMEs. Owners, managers, or manager-owners are surveyed using questionnaires. This study uses SmartPLS SEM. This research proved that supply chain management improves organizational performance by increasing innovation capabilities and supply chain performance. Supply chain management negatively impacts organizational performance if directly linked. This study supports the resource-based view (RBV) and the knowledge-based view (KBV) to explain the effect of supply chain management on organizational performance and how innovation capabilities moderate this effect.