Role of supply chain management in improving competitive advantage of Indonesian small and medium enterprises

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Titel: Role of supply chain management in improving competitive advantage of Indonesian small and medium enterprises
Autoren: Hotlan Siagian, Sautma Ronni Basana, Zeplin Jiwa Husada Tarigan, Maya Novitasari, Ferry Jie
Quelle: Problems and Perspectives in Management, Vol 22, Iss 2, Pp 696-707 (2024)
Verlagsinformationen: LLC CPC Business Perspectives, 2024.
Publikationsjahr: 2024
Schlagwörter: East Java, supply chain management, HF5001-6182, 05 social sciences, 0211 other engineering and technologies, 1. No poverty, resource-based view, Smart-PLS, 02 engineering and technology, small and medium companies, Indonesia, 0502 economics and business, 8. Economic growth, Business, Operations and Supply Chain Management
Beschreibung: Global competition has forced companies, including small and medium enterprises (SMEs), to improve their competitive advantage. Supply chain management practices are the ways to improve the competitive advantage, particularly in the global competition context. However, there is still doubt SMEs can compete globally, considering they face limited resources, skilled workforce, and business networks. Therefore, this study aims to examine the influence of supply chain management practices, covering cross-functional integration, partnership, responsiveness, and resilience. Moreover, this study has examined which practices dominate in improving competitive advantage. The quantitative study involved 445 SMEs located in East Java, Indonesia. The respondents are supervisors or higher levels and work in departments related to supply chain management, as they can provide the relevant information and possess complete knowledge of management practices. The data were collected via a questionnaire designed with a five-point Likert scale. The responses were analyzed using SmartPLS software 4.0. The results show that cross-function integration improves supply chain partnership, responsiveness, and resilience (β = 0.705, 0.382, 0.324; t-value = 25.177, 6.697, 5.783). Supply chain partnerships affect supply chain responsiveness, resilience, and competitive advantage (β = 0.327, 0.257, 0.249; t-value = 5.933, 4.536, 5.651). Moreover, supply chain responsiveness improves supply chain resilience and competitive advantage (β = 0.285, 0.106; t-value = 5.690, 2.099). Supply chain resilience improves competitive advantage (β = 0.435 and t-value = 8.987). SMEs can enhance their competitive advantage by integrating their internal cross-functional integration and adopting supply chain partnership, responsiveness, and resilience. Acknowledgments The authors would like to thank DIKTI 2023 and Research and Community Outreach Petra Christian University for providing the grant to fund this research.
Publikationsart: Article
Dateibeschreibung: application/pdf
ISSN: 1810-5467
1727-7051
DOI: 10.21511/ppm.22(2).2024.54
Zugangs-URL: https://doaj.org/article/30431b3f4ea3414d8c96fb102815b977
Rights: CC BY
Dokumentencode: edsair.doi.dedup.....20926bb40b9f4f66493d094cab00c579
Datenbank: OpenAIRE
Beschreibung
Abstract:Global competition has forced companies, including small and medium enterprises (SMEs), to improve their competitive advantage. Supply chain management practices are the ways to improve the competitive advantage, particularly in the global competition context. However, there is still doubt SMEs can compete globally, considering they face limited resources, skilled workforce, and business networks. Therefore, this study aims to examine the influence of supply chain management practices, covering cross-functional integration, partnership, responsiveness, and resilience. Moreover, this study has examined which practices dominate in improving competitive advantage. The quantitative study involved 445 SMEs located in East Java, Indonesia. The respondents are supervisors or higher levels and work in departments related to supply chain management, as they can provide the relevant information and possess complete knowledge of management practices. The data were collected via a questionnaire designed with a five-point Likert scale. The responses were analyzed using SmartPLS software 4.0. The results show that cross-function integration improves supply chain partnership, responsiveness, and resilience (β = 0.705, 0.382, 0.324; t-value = 25.177, 6.697, 5.783). Supply chain partnerships affect supply chain responsiveness, resilience, and competitive advantage (β = 0.327, 0.257, 0.249; t-value = 5.933, 4.536, 5.651). Moreover, supply chain responsiveness improves supply chain resilience and competitive advantage (β = 0.285, 0.106; t-value = 5.690, 2.099). Supply chain resilience improves competitive advantage (β = 0.435 and t-value = 8.987). SMEs can enhance their competitive advantage by integrating their internal cross-functional integration and adopting supply chain partnership, responsiveness, and resilience. Acknowledgments The authors would like to thank DIKTI 2023 and Research and Community Outreach Petra Christian University for providing the grant to fund this research.
ISSN:18105467
17277051
DOI:10.21511/ppm.22(2).2024.54