The Effect of Sustainable Supply Chain Management on Company Performance Mediated by Competitive Advantage

Abstract

This study aims to examine the effect of sustainable supply chain management on company performance mediated by competitive advantage, the subjects of this study were the actors of the pottery Joint Business Group (JBG) in Banten Province, Indonesia. This type of research is quantitative research with descriptive research and causal research using questionnaires distributed directly to the JBG Pottery actors as many as 100 respondents. Moreover, Structural Equation Model (SEM) in the SmartPLS Software version 3.0.m3 (SmartPLS GmbH: Bönningstedt, Germany) was used for data analysis. The results of the study found that sustainable supply chain management affects competitive advantage, company performance was also observed to be influenced by sustainable supply chain management and competitive advantage while company performance was also found to be affected by sustainable supply chain management through the mediating effect of competitive advantage. The significant implication of this study is for managers to ensure competitiveness in the process of implementing sustainability supply chain to improve company performance, while providing recommendations to the government through Disperindagkop and SMEs in conducting the assistance process to MSMEs.

Modelling the significance of strategic orientation for competitive advantage and economic sustainability: the use of hybrid SEM–neural network analysis

“…Sidek et al ( 2020 ) stated that the strategy of meeting customers’ needs helps halal SMEs to gain competitive advantage and subsequently, economic sustainability. This particular result was found similar with the result reported by Mukhsin and Suryanto ( 2022 ) on the positive influence of competitive advantage on sustainability. As such, the following hypothesis was proposed for testing:…”

“…Table 5 presents the results on mediation effects, which supported H7a, H7b, H7c, H7d, and H7e. Mukhsin and Suryanto ( 2022 ) stated the crucial roles of technology, innovation, and network (internal resources) as well as customer orientation and competitor orientation (external resources) for SMEs to achieve competitive advantage by stimulating creative and innovative thoughts of achieving economic sustainability among entrepreneurs.…”

“…Besides that, this study demonstrated the mediating role of competitive advantage. Halal SMEs need to recognise the importance of competitive advantage by transforming new systems in manufacturing, product delivery system, and online sales platform of halal products in order to accomplish strategic diversification and innovation (Mukhsin & Suryanto, 2022 ). SMEs should also consider using technology, innovation, and network (internal resources) as well as customer orientation and competitor orientation (external resources) as support systems to reinforce the willingness of customers to purchase halal products.…”

“…Prior studies reported that the mediation effect of competitive advantage enhances the influence of other predictors on sustainability (Anwar et al, 2018 ; Yang et al, 2018 ). Mukhsin and Suryanto ( 2022 ) found that competitive advantage mediates the statistically significant influence of supply chain management on company performance. Therefore, this study proposed the following hypothesis:…”

Sustainable Supply Chain Strategy and Sustainable Competitive Advantage: A Mediated and Moderated Model

“…The sustainability practices enable the organizations to outperform their competitors by focusing on long-term stability. Given the illustration, the study found that sustainable supply chain practices provide the company with a sustainable competitive advantage with improved organizational performance ( 28 ).…”