Supply Chain and Quality Management Practice: Its Impact on Competitive Advantage and Firm Performance (Study on Small and Medium Enterprises at West Java)

Abstract

. Small and Medium Enterprises (SMEs) play an important role in encouraging economic growth of West Java. However, the contribution of SMEs is still small due to the lack of competitiveness of SME products. Competitiveness and weak SME performance can be enhanced by supply chain management and quality management practices. This study focuses on supply chain management and quality management practices that are mutually casual, competitive advantage and firm performance and the role of moderation of company age in SMEs in West Java. The purpose of this study is to determine the effect of supply chain management and quality management practices on competitive advantage either partially or simultaneously and its impact on firm performance, and how the role of moderating variable company's age in moderating the relationship between competitive advantage and firm performance. The unit of analysis in this study is the Small and Medium Enterprises business located in West Java region with a sample size of 200 business units. To test the model of the research empirically tested using structural equation modeling (SEM) with the help of LISREL 8.70. The results of this study indicate that the implementation of supply chain management and quality management are done simultaneously provide a great impact for increasing competitive advantage as well as firm performance. The role of corporate age moderation is very small in strengthening the relationship between competitive advantages with firm performance on SMEs in West Java.