MSME Busines Performance: The Role of Competitive Advantage, Supply Chain Management Practices and Innovation
Abstract
Good business performance for every business actor is a major concern to ensure the competitiveness and sustainability of the company. To be able to achieve satisfactory business performance, MSMEs must be able to carry out various strategies such as creating competitive advantage, implementing SCM Practices, and innovate. This study was conducted to see how MSME supply chain management practices, competitive advantage, and innovation affect the Business Performance of Snack MSMEs in Padang City. The population of this research is snack food SMEs assisted by the Department of Trade, Cooperatives, and SMEs of Padang City, with a total sample of 130 SMEs. Research data were collected using a questionnaire. The data that has been collected was analyzed using a multiple regression analysis approach with SPSS ver software. 24. The results show that (1) competitive advantage has a significant effect on business performance, (2) SCM Practicessignificant effect on business performance, and (3) innovation has no significant effect on business performance. In Padang City snack SMEs, competitive advantage, SCM Practices and innovation have an influence of 87.7% on MSME business performance.
Keywords
Full Text:
PDFReferences
Abdi, M.R. & Labib, A., (2016). RMS capacity utilisation: product family and supply chain. International Journal of Production Research. Vol. 55, No. 7. pp. 1930-1956. September 2016. http://dx.doi.org/10.1080/00207543.2016.1229066
Al-Douri, J. A. (2018). The impact of supply chain management approaches on supply chain performance in Iraq. International Journal of Supply Chain Management, 7(5), 13–21.
AL-Shboul, M. A., Garza-Reyes, J. A., & Kumar, V. (2018). Best supply chain management practices and high-performance firms: The case of Gulf manufacturing firms. International Journal of Productivity and Performance Management, 67(9), 1482–1509. https://doi.org/10.1108/IJPPM-11-2016-0257
Aramyan, L. H., Lansink, A. G. J. M. O., Van Der Vorst, J. G. A. J., & Kooten, O. Van. (2007). Performance measurement in agri-food supply chains: A case study. Supply Chain Management, 34(7), 34–90. https://doi.org/10.1108/13598540710759826
Ar, I. M., & Baki, B. (2011). Antecedents and performance impacts of product versus process innovation Empirical evidence from SMEs located in Turkish science and technology parks. European Journal of Innovation Management. Vol. 14 No. 2.
Bhasin, S., “Lean and performance measurement.” Journal of Manufacturing Technology Management, Volume 19, Issue 5. pp.670–684, June 2008.
https://doi.org/10.1108/17410380810877311
Boyer, K. K., & Lewis, M. W. (2009). Competitive Priorities: Investigating the Need for Trade-Offs in Operations Strategy. Production and Operations Management, 11(1), 9–20.
Bratić. Diana. (2011). Achieving a Competitive Advantage by SCM. IBIMA Business Review. Vol. 2011. https://doi.org/10.5171/2011.957583
Chen, I. J., & Paulraj, A. (2004). Towards a theory of supply chain management: The constructs and measurements. Journal of Operations Management, 22(2), 119–150. https://doi.org/10.1016/j.jom.2003.12.007
Das, D. (2018). The impact of Sustainable Supply Chain Management practices on firm performance: Lessons from Indian organizations. Journal of Cleaner Production, Volume 203. pp.179–196. December 2018. https://doi.org/10.1016/j.jclepro.2018.08.250
Duong Vu Xuan Quynh & Nguyen Hoang Huy. Supply Chain Management Practices, Competitive Advantage and Firm Performance: A Case of Small and Medium Enterprises (SMEs) in Vietnam. Journal of Modern Accounting and Auditing, Vol. 14, No. 3. Pp.136-146. March 2018. https://doi.org/10.17265/1548-6583/2018.03.004
Gawankar, S. A., Kamble, S., & Raut, R. 2017. An investigation of the relationship between supply chain management practices (SCMP) on supply chain performance measurement (SCPM) of Indian retail chain using SEM. Benchmarking, 24(1), 257–295. https://doi.org/10.1108/BIJ-12-2015-0123
Gray, B. J., Matear, S., Matheson, P. K., & Gray, B. J. (2006). Improving service firm performance. Journal of Service Marketing. 16 (3), 186-200
Heizer, J., Render, B., & Munson, C. 2017. Operations Management Sustainability and Supply Chain Management. In Pearson Education Limited (12th ed., Vol. 1). https://doi.org/10.1017/CBO9781107415324.004
H. Setyawati, “Pengaruh orientasi kewirausahaan dan orientasi pasar terhadap kinerja perusahaan melalui keunggulan bersaing dan persepsi ketidakpastian lingkungan sebagai prediksi variabel moderasi (Survey pada UMKM Perdagangan di Kabupaten Kebumen)”. fokusbisnis, Vol. 12, No. 2, December 2013. https://doi.org/10.32639/fokusbisnis.v12i2.3
Kamukama, N. (2013). Intellectual capital: Company’s invisible source of competitive advantage. Competitiveness Review, 23(3), 260–283.
Kim, S. W. (2006). Effects of supply chain management practices, integration and competition capability on performance. Supply Chain Management, 23(5), 102–132. https://doi.org/10.1108/13598540610662149
Kozarević, S., & Puška, A. (2018). Use of fuzzy logic for measuring practices and performances of supply chain. Operations Research Perspectives, 5(6), 150–160. https://doi.org/10.1016/j.orp.2018.07.001
Larsen, P., & Lewis, A. (2007). How Award-Winning SMEs Manage the Barriers to Innovation. Creativity and Innovation Management, 16(2), 142–151.
https://doi.org/10.1111/j.1467-8691.2007.00428.x
Lewis, M. A. (2000). Lean production and sustainable competitive advantage. International Journal of Operations and Production Management, 45(2), 345–490. https://doi.org/10.1108/01443570010332971
Li, Ling X. (2000). An Analysis of Sources of Competitiveness and Performance of Chinese Manufacturers. International Journal of Operation and Production Management. Vol. 20, No. 3
Li, S., Ragu-Nathan, B., Ragu-Nathan, T. S., & Subba Rao, S. 2006. The impact of supply chain management practices on competitive advantage and organizational performance. Omega, 34(2), 107–124. https://doi.org/10.1016/j.omega.2004.08.002
Liao, S. H., Fei, W. C., & Chen, C. C. (2007). Knowledge sharing, absorptive capacity, and innovation capability: An empirical study of Taiwan’s knowledge-intensive industries. Journal of Information Science, 33(3), 340–359.
Lin, Yeh‐Yun dan Chen, Yi‐Ching. 2007. Does innovation lead to performance? An empirical study of SMEs in Taiwan. Management Research News, 30(2), 115–132.
Maltz, A. C., Shenhar, A. J., & Reilly, R. R. (2003). Beyond the balance scorecard: refining the search for organizational success measure. Long Range Planning Journal, 36, pp.187-204.
Mulyanto, H., & Sugiarti, S. (2017). Aset Strategik, Adaptabilitas Lingkungan dan Organizational Citizenship Behavior dalam mempengaruhi daya saing serta dampaknya pada kinerja perusahaan. Jurnal Manajemen & Kewirausahaa. Vol. 13, No. 2
Nasir, M. A., & Morgan, J. 2017. The effect of supply chain management practices on supply chain and manufacturing firms’ performance. Journal of Manufacturing Technology Management, 28(5), 577–609.
Nursya’bani Purnama, Hery Setiawan. 2003. Analisis Pengaruh Sumber-Sumber Keunggulan Bersaing Bidang Pemasaran Terhadap Kinerja Pemasaran Manufaktur Di Indonesia. Jurnal Siasat Bisnis, Vol. 2, No. 8.
O’Regan, N., Sims, M., & Ghobadian, A. (2005). High performance: ownership and decision‐making in SMEs. Management Decision, 43(3), 382–396
Story, V., O'Malley, L., & Hart, S. (2011). “Roles, role performance, and radical innovation competences”. Industrial Marketing Management, 40 (6), 952–966. https://doi.org/10.1016/j.indmarman.2011.06.025
Wong, C. Y., Arlbjørn, J. S., & Johansen, J. 2005. Supply chain management practices in toy supply chains. Supply Chain Management, 45(3), 54–90. https://doi.org/10.1108/13598540510624197
Wright, Peter., Kroll, Mark., Pray, Bevalee., and Lado, Augustine. 1995. Strategic Orientations, Competitive Advantage, and Business Performance. Journal of Business Research, Volume 33, Issue 2.
Zimmermann, F., & Foerstl, K. (2014). A Meta-Analysis of the Purchasing and Supply Management Practice-Performance Link. Journal of Supply Chain Management, 34(6), 12–32. https://doi.org/10.1111/jscm.12051
Zhang, S. Z. Z. W. X. Z. M. (2017). Industrial Management & Data Systems Article information: Effects of Institutional Support on Innovation and Performance: Roles of Dysfunctional Competition. Journal Industrial Management & Data Systems Vol. 117 No. 1
DOI: https://doi.org/10.54268/baskara.v5i1.12663
Refbacks
- There are currently no refbacks.
Copyright (c) 2022 BASKARA : Journal of Business and Entrepreneurship
BASKARA: Journal of Business and Entrepreneurship Copyright of Baskara: Journal of Business and Entrepreneurship (e-ISSN: 2623-0089 ). This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License |
