The role of supply chain management practices on competitive advantage and performance of halal agroindustry SMEs

Abstract

Effective supply chain management (SCM) has become a potentially valuable way to secure competitive advantage and improve organizational performance because competition is no longer between organizations but between supply chains. This study examines the relationship between the influence of SCM practices on competitive advantage and organizational performance. The data for this study were collected from 165 employees in one of the SMEs in the Halal Agroindustry in Indonesia. Survey data were analyzed using partial least squares structural equation modeling (PLS-SEM). The results suggest that higher levels of SCM practices can lead to increased competitive advantage and improved organizational performance. Also, competitive advantage can have a direct positive impact on organizational performance. This study also confirms the mediating effect of competitive advantage on the relationship between SCM practices and organizational performance.

Analysis of Supply Chain Strategy, Competitiveness, and Business Performance at Passion Fruit Processing Industry in Gowa Regency

“…Based on the loading factor value, it can be seen that product quality is an important element in explaining and describing competitiveness at passion fruit processing industry with value of 0.794. This finding is in line with [8,13] that product quality is important indicator that must be considered for producing best competitiveness.…”

Supply chain finance, firm performance and industry competition: empirical evidence from Pakistan

“…RDT suggests that in order to maintain a long-term relationship with all interested parties, such as suppliers and customers, a firm needs to establish long-term relationships to gain resources that are vital for one's success and existence. SCF helps reduce uncertainty and operational risk in the supply chain and optimizes the company's financial performance (Cahyono et al, 2023;Jahanbakhsh Javid and Amini, 2023). Based on the above discussion, the first proposed hypothesis of this study is to test whether providing SCF to suppliers/customers improves firm performance.…”

“…It is clear from previous literature that some aspects of organizations, such as industry structure, firm resources and capabilities, combined to keep a sustainable profit, where industry structure is defined as a degree of competition in an industry (Acquaah, 2003). Organizations are increasingly implementing new practices to stay competitive such as supply chain finance (SCF) which is a good tool for reducing risk and a source of competitive advantage (Cahyono et al, 2023). Suppose a firm is operating in a high industry competition.…”

Examining the Direct and Indirect Impacts of E-Supply Chain Implementation on Performance: A Collaborative Approach

“…E-SC can play a crucial role in preventing excessive inventory and missed sales by adapting manufacturing and delivery capacities based on changes in demand, supply fluctuations, and unforeseen threats and dangers [21]. However, in the present era, in order to enhance and augment customer satisfaction and guarantee the quality of products and services, firms must engage in close collaboration with all elements of their supply chain system [22]. Collaboration in E-SC is crucial for enhancing the agility of the supply chain [23].…”