SMEs’ SUPPLY CHAIN PERFORMANCE: THE ROLE OF COLLABORATION, CAPABILITIES AND INNOVATION

Abstract

This study aims to assess supply chain performance in the context of SMEs including supply chain collabora-tion and capabilities, as well as innovation performance as the drivers and analyse the moderating role of knowledge sharing on the relationship between supply chain collaboration and innovation, as well as the collaboration and sup-ply chain performances. The data were obtained from 179 SMEs involving 537 respondents in nine districts of Bali, Indonesia. Furthermore, a partial least square modelling was used to evaluate the proposed supply chain performance model. The present study generated three important findings; 1) supply chain collaboration has a significant effect on supply chain capability, innovation performance and supply chain performance, 2) innovation performance has no significant effect on supply chain performance, and 3) knowledge sharing acts as a moderating variable of the relation-ship between supply chain collaboration and innovation performance. By testing the research model conceptually and verifying it empirically, we contribute to the study of the relationship between collaboration and the capability of SMEs to generate innovation and supply chain performance.