Factors Influencing Supply Chain Competitive Advantage and Performance

Abstract

This paper investigates the influence of supply chain management practices (strategic supplier partnership, customer relationship, level of information sharing, quality of information sharing, and postponement) on competitive advantage (cost, quality, delivery dependability, product innovation, and time to market) and on supply chain performance. It also explores the moderating effect of supply chain uncertainty (supplier, process, and demand) on the relationship between supply chain management practices and performance. The paper focuses on large-scale manufacturing companies in Indonesia and incorporates the Lie et al. [2006] research model as well as modified research models that include uncertainty (supplier, process, and demand) as a moderating variable. A survey questionnaire of 500 Indonesian CEOs was used to collect data.. The author developed four hypotheses, which were tested using simple regression analysis and moderated regression analysis. The results supported three of the hypotheses, but did not support the fourth. From the results, it can be concluded (1) that supply chain management practices have significant effects on both supply chain competitive advantage and performance; (2) that competitive advantage does not have a significant effect on supply chain performance; and (3) that supply chain uncertainty moderates the relationship between supply chain management practices and performance.