ANALYSIS INFLUENCE RELATIONSHIP OF INTERNAL AND EXTERNAL ON STRATEGY AND SUSTAINABLE SUPPLY CHAINS MANAGEMENT ON OPERATIONAL PERFORMANCE OF FOOD AND BEVERAGES AGRO-INDUSTRIES

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This research examines the influence of the relationship between internal and external factors on operational performance, beforehand an effective strategy supply chain management is needed to improve operational performance as a core strategic competency for better competitive advantage but companies need to evaluate actions that have environmental impacts, it is necessary practice sustainable supply chain management in a business. SEM-PLS analysis to examine the effect of the relationship between internal and external factor using a sample of 100 food and beverage agro-industries in the Province of East Java. The results showed that internal and external factors have a positive and significant effect on supply chain management strategy while on operational performance, although the influence of internal factors cannot be direct and external factors have a direct influence on operational performance, the practice sustainable supply chain management also has a direct effect as a mediating variable, between supply chain strategy variables on operational performance. This research is not only to find the right strategy for the food and beverage agro-industries but also to develop research on the importance of sustainable supply chain management practices in the food and beverage agro-industries.

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