Effect of Supply Chain Management on Competitive Advantage and Organizational Performance. Studies on the Batik Industry in Yogyakarta City

Abstract

This study aims to determine the effect of supply chain management on competitive advantage and organizational performance, as well as to analyze the mediating effect of competitive advantage on the effect of supply chain management on organizational performance. This research was conducted on the batik industry in Yogyakarta City, Indonesia with a population of 56 small medium enterprises. The data collection method uses a questionnaire distributed to the owner or manager of the batik industry which has been registered in the Database Directory of the Yogyakarta Provincial and City Industry and Trade Services. The analytical tool in this research is Structural Equating Modeling (SEM) using SmartPLS3. The results indicate that supply chain management has a significant positive effect on competitive advantage and company performance with the respective path coefficient values of 0.156 and 0, 423 and t values of 2.998 and 2.790. Competitive advantage has a significant positive effect on organizational performance with a path coefficient of 0.865 and a t value of 18.524. In this study, competitive advantage is able to mediate the effect of supply chain management on quasi-mediating organizational performance.