STRATEGIC PROFILING: AN EMPIRICAL EVIDENCE OF SUPPLY CHAIN STRATEGY PRACTICE IN THE SMAL AND MEDIUM ENTERPRISES

Abstract

Introduction: The purpose of the study is to describe the characteristics of the development pattern of the SME (Small and Medium Enterprises) capabilities in managing integrated supply chain capabilities. Specifically, the purpose of the study is to test empirically whether inter-group of supply chain strategy can be found the differences in the characteristics (1) the contexts of organization, they are competitiveness and product type; (2) the featured competitive priorities in the manufacturing field and (3) the performance achievement. Researh Method: The hypothesis testing process of the study uses the sample of 102 SMEs in the Province of Yogyakarta, Indonesia. The testing technique used in this study is the technique of cluster analysis and ANOVA. Findings: The testing result of cluster analysis identifies 3 taxa of supply chain strategy group, each strategic profiling of the supply chain describes that only cluster 2, that is the type of Le-Agile has the consistency of decision, while the type of Agile and Lean does not have the consistency. The result of ANOVA test is used to test 3 hypotheses and all hypotheses are supported, while the hypothesis of supply chain strategy group differences based on the type of product is not proven. Research Limitations: The use of single source will lead to a single respondent bias and give rise to an interrater reliability for the perceptual data. Especially when measuring the performance variables in this study which uses self-report, thus the use of a single respondent will lead to bias. Novelty: This study aims to test the concept of fit in particular the alignment conception of strategy between functions, they are supply chain and manufacturing strategy by using a selection approach. The taxonomy result will produce a strategic profiling which is able to describe the extent to which the strategic decision congruency and consistency between functions in the scope of SMEs in particular.