Abstract

At present, the condition of competition in a network is very tight due to rapid technological changes, economic and political stability in Indonesia which is experiencing uncertainty, and the large number of foreign investors entering, as well as new competitors. Companies themselves are required to always innovate in today's increasingly modern era. This competition must be able to create a good network in order to create competitive advantage and company performance in the formation of good Supply Chain Management. This study aims to determine the effect of supply chain management on competitive advantage and company performance. This study will examine supply chain management on competitive advantage and company performance in Small and Medium Enterprises (SMEs) in Bandung City, West Java. In this study, there are several differences from previous research, namely the indicators that will be used in this study. Namely, the measured supply chain management variables are indicators of technology use, supply chain speed, customer satisfaction, supply chain integration and inventory management. The variables of competitive advantage that are measured are the indicators of Price, Quality, and Time to market, and sales growth. Meanwhile, the measured company performance variables are indicators of financial performance and operational performance. The analytical method used in testing the hypothesis is to use Structural Equation Modeling (SEM) with the help of AMOS software version 20. Respondents in this study were 150 respondents in Small and Medium Enterprises (SMEs) in Bandung, West Java. The results of this study indicate that supply chain management has a positive and significant effect on the company's competitive advantage. Competitive advantage has a positive and significant effect on company performance. Supply chain management has a positive and significant effect on company performance. Supply chain management has a positive and significant effect on company performance through competitive advantage.

Highlights

  • We cannot avoid competition in the business world, if you want to enter the business world, prepare yourself to face other business competitors

  • Chain management has a positive effect on company performance

  • The results of this study found that supply chain management has a positive effect on competitive advantage

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Summary

Introduction

We cannot avoid competition in the business world, if you want to enter the business world, prepare yourself to face other business competitors. Competition in the business world is very tight, so we must face it in a healthy way and in accordance with existing regulations. Business competition is one of the major risks that business people must face. Competition is something that must be faced by a company. Competitive advantage is a part of the success or failure of a company (Indrajit & Djokopranoto, 2002). One of the keys to the success of a company is its ability to have and maintain one or more competitive advantages that can be achieved through various means. Competitive advantage is an important requirement in achieving long-term success and company survival

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