Supply chain management performance toward competitiveness of chili as main agriculture commodity

Abstract

Chili has a good prospect demand, but the sector of chili cultivation in small-scale enterprises still face many problems, especially the ability of Supply Chain Performance Management in improving business competitiveness in agricultural chili plants. This study aims to show the effect of Supply Chain Management Performance toward the competitiveness of agricultural chili plants business in Tanralili District, Maros Regency. This research is descriptive quantitative research with a sample of 80 people chosen by quota sampling consisting of farmers, wholesalers, and small traders. The data are collected through observation, interview, and questionnaire (multiple choice questions and an open question). Multiple regression analysis and SEM analysis are used to see the influence of variables. Simple regression test results show that the R2 value for 0.598, amounting to 116.245 F value, and amounted to 10.782 t. It is acceptable that the hypothesis of the Supply Chain Management performance affects competitiveness. Meanwhile, the result of the evaluation of the structural model coefficients which reveal the effect of the Supply Chain Management performance on the competitiveness has been confirmed to have a significant effect where the p-value (0.000<0.05). It is concluded that the application of Supply Chain Performance Management on chili plants business in Tanralili district, Maros regency can increase the competitiveness. It is expected that the implementation performance of the strategic formulation of Supply Chain Management may bring an impact on the development of business competitiveness in the area.