The role of supply chain management and competitive advantage on the performance of Indonesian SMEs

Abstract

The purpose of this study is to analyze the effect of supply chain management on competitive advantage, the effect of supply chain management on performance and the effect of competitive advantage on performance of small and medium enterprises (SMEs). The object of this research includes all SMEs in Tangerang, the population in this study also covers all 680 Small and Medium Enterprises in Tangerang, Indonesia. The research method uses quantitative methods and the technique used for data collection is by using an online questionnaire. Questionnaires are given to 210 owners or managers of Small and Medium Enterprises who were selected using the simple random sampling method. Data analysis used Structural Equation Modeling (SEM) with data processing tools using SmartPLS software. The results of data analysis show that supply chain management has a positive and significant effect on the performance of SMEs. Supply chain management has a positive and significant effect on competitive advantage. Finally, competitive advantage has a positive and significant effect on performance.