The influence of supply chain management on competitive advantage and company performance

Abstract: At present, the condition of competition in a network is very tight due to rapid technological changes, economic and political stability in Indonesia which is experiencing uncertainty, and the large number of foreign investors entering, as well as new competitors. Companies themselves are required to always innovate in today's increasingly modern era. This competition must be able to create a good network in order to create competitive advantage and company performance in the formation of good Supply Chain Management. This study aims to determine the effect of supply chain management on competitive advantage and company performance. This study will examine supply chain management on competitive advantage and company performance in Small and Medium Enterprises (SMEs) in Bandung City, West Java. In this study, there are several differences from previous research, namely the indicators that will be used in this study. Namely, the measured supply chain management variables are indicators of technology use, supply chain speed, customer satisfaction, supply chain integration and inventory management. The variables of competitive advantage that are measured are the indicators of Price, Quality, and Time to market, and sales growth. Meanwhile, the measured company performance variables are indicators of financial performance and operational performance. The analytical method used in testing the hypothesis is to use Structural Equation Modeling (SEM) with the help of AMOS software version 20. Respondents in this study were 150 respondents in Small and Medium Enterprises (SMEs) in Bandung, West Java. The results of this study indicate that supply chain management has a positive and significant effect on the company's competitive advantage. Competitive advantage has a positive and significant effect on company performance. Supply chain management has a positive and significant effect on company performance. Supply chain management has a positive and significant effect on company performance through competitive advantage.

How to cite this paper

 Jamaludin, M. (2021). The influence of supply chain management on competitive advantage and company performance.Uncertain Supply Chain Management, 9(3), 696-704.

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