THE EFFECT OF SUPPLY CHAIN MANAGEMENT ON
COMPETITIVE ADVANTAGE AND FIRM PERFORMANCE
ARIZONA STATE UNIVERSITY
SCM 502 - OPERATIONS AND SUPPLY CHAIN MANAGEMENT
SPRING 2024
Introduction:
The field of Operations Management is rich and exciting. The improvement of our
lives as well as the discipline of Operations Management is due to the innovation and
contribution of many minds. Operations Management plays an important role in the success
of a business in order to meet customer expectations. In today's increasingly fierce
competition, companies are competing to provide quality products and services in the eyes
of consumers in order to survive.
According to Reinder and Heizer (2004), there are 10 decision areas in operations
management, namely product design, quality management, process design, location, layout
design, work system, supply chain, inventory, scheduling, and maintenance. The ten
operations management decisions are considered very important when a business
organization wants to implement a good corporate operations management system. The ten
decisions in operations management can also be called the basic pillars in an effort to create
good operations for the company.
One of the pillars in operations management decisions is supply chain management.
Supply chain management is important for coordinating activities in the supply chain to
maximize competitive advantage. Like a championship team, a key feature of a successful
supply chain is its members acting in the best interest of their team (the supply chain). As
companies strive to improve their competitiveness through product customization, high
quality, cost reduction, and speed to market, more emphasis is placed on the supply chain.
Through ongoing strategic relationships, suppliers become partners when they contribute to
competitive advantage.
On the operational side of the company, supply chain management will help
companies to produce and distribute goods in the right quantity, location and time. This
accuracy will certainly have an impact on increasing sales, profits, and market share which
are indicators of company performance. Product availability and economical selling prices
can only occur if there is good coordination between the retail company and the parties in its
supply chain.
Coordination between parties in the supply chain involves not only inventory
coordination, but also market information that is useful for corporate planning. A shortage of
product inventory at a distributor will result in lost sales, while a certain excess will result in
product accumulation and increased inventory maintenance costs. In addition, coordination
with branch stores as one of the supply chain links is important, where the head office can
share information and gather information about each supplier so that supply management
and product sales planning can be done better. The actions taken by a company in supply
chain management are intended to help the company achieve its strategic competitiveness
and generate above-average profits. Strategic competitiveness is achieved when a company
successfully formulates and implements a value creation strategy.
When a company implements a strategy that cannot be copied by other companies or
is too expensive to imitate, it has a competitive advantage. Once a company gains strategic
competitiveness and successfully exploits its competitive advantage, a company is able to
achieve its main goal of achieving a high level of sales and earning profits.
Three variables used in this study are supply chain management, competitive
advantage, and company performance. This research is used to determine the three variable
relationships, whether supply chain management has a significant effect on competitive
advantage and whether supply chain management has a significant effect on company
performance. The research is applied to modern retail that deals with suppliers. Supply
chain management practices are not only important for manufacturing companies but also
for retail companies. One of the important things in supply chain management is to organize
the circulation of information from its members, namely manufacturers, distributors, agents
and retailers.
The retail business is an overall business activity related to the sale and provision of
services to the public as consumer actors for individual use as individuals and families.
Success in a competitive retail market, retailers must be able to offer the right product, at the
right price, time and place. Customers experience one of the general levels of satisfaction, if
performance is below customer expectations will be disappointed, if performance matches
customer expectations are satisfied, if it exceeds customer expectations are very satisfied or
happy. The development of a dynamic industrial environment in the global era The current
situation has triggered many corporate organizations to explore their potential and identify
key success factors to excel in the increasingly competitive environment.
With a competitive advantage the company is able to compete in every situation,
especially during unfavorable economic and political conditions. For companies must have a
competitive advantage. Competitive advantage is an advantage over competitors that is
obtained by delivering greater customer value, through lower prices or by providing more
benefits in accordance with higher pricing.
Company performance has become the most important issue for every organization
whether it is profit or non-profit, so it is very important for managers to know where the
factors that cause company performance to take appropriate steps. In addition, to meet the
company's performance is the ability of the organization to achieve its goals by using
resources efficiently and effectively.
2.1 Theoretical Review
2.1.1 Supply Chain Management
According to Chopra and Meindl (2013) supply chain management is the
management of all parts that handle customer demand either directly or indirectly. Supply
chain management is a sequence of organizations, facilities, functions, and activities
involved in the production and delivery of a product or service. The sequence starts from the
basic supplier of raw materials to the end customer. Facilities include forecasting,
purchasing, inventory management, information management, quality assurance, scheduling,
product, distribution, delivery, and customer service.
According to Heizer and Render (2004) supply chain management is the
management of activities in order to obtain raw materials, transform these raw materials to
consumers through the distribution system. Lambert and Stock (2001) define supply chain
management as the integration of key business processes from end users through original
suppliers that provide products, services, and information that add value to customers and
other stakeholders. Schroeder (2004) states that supply chain management is the planning,
design and control of supply chain information flows in order to meet customer needs in an
efficient way for customer needs in an efficient way for current and future needs. Bowersox
(2002) defines supply chain management as the supply chain (value chain or demand chain)
management consisting of companies working to capitalize on strategic positions and
improve operational efficiency.
Gunasekaran et al in 2004 conducted research on SCM with a focus on supply chain
performance measurement. The research on companies in the UK aims to further introduce
the importance of supply chain management performance measurement and its metrics. The
results of this study include 76% of respondents stated that their Return on Investment (ROI)
had increased to the expected level after they implemented supply chain management. 66%
of respondents also said that supply chain management had a positive impact on market
spread.
The supply chain encompasses the entire interaction between suppliers, distributors
manufacturing companies, and consumers. These interactions also pertain to transportation,
scheduling information, credit and cash transfers, and raw material transfers of the parties
involved.
2.1.2 Competitive Advantage
Today it is increasingly believed that the main key in winning the competition is to
provide value and satisfaction to customers through the delivery of quality products and
services at competitive prices (Tjiptono, 2008). To design market offerings that deliver more
value than competitors trying to win the same market. Companies must understand
customers and develop strong relationships with customers. This offering is also called
excellence (Kotler, 2001), where the company has an advantage over competitors obtained
by offering greater value to consumers than competitors' opponents obtained by offering
greater value to consumers than competitors' offers. Companies need to understand
competitors as well as customers through analysis to achieve this competitive advantage.
According to Welsch et. al. (2000), competitive advantage is the advantage gained through
the application of competitive strategies that aim to build a profitable and sustainable
position against market forces that determine industry competition.
Competitive advantage according to Porter (2007) is the ability of a company to
achieve economic benefits above the profits that can be achieved by competitors in the
market in the same industry. Companies that have a competitive advantage always have the
ability to understand changes in market structure and are able to choose effective marketing
strategies. Each company's choice of the above strategies will depend on analyzing the
business environment to determine opportunities and threats. Based on a study conducted by
Porter, several ways to gain competitive advantage include offering products or services at a
minimum price, offering products or services with uniqueness compared to competitors, or
focusing on certain segments.
2.1.3 Company Performance
Company performance is a display of the overall condition of the company during a
certain period of time, which is the result or achievement that is influenced by the company's
operational activities in utilizing resources that are owned. Performance is a general term
used for part or all of the actions or activities of a period with reference to a number of
standards such as past or projected costs, on the basis of efficiency, responsibility or
management accountability and the like (Srimindarti, 2004). Performance is the result of an
evaluation of the work that has been done compared to the criteria that have been set
together (Agung, 2008).
Mulyadi (2001) states that performance is the success of personnel, teams, or
organizational units in realizing strategic goals that have been previously set with expected
behavior. Performance is the result or level of success of a person as a whole during a
certain period in carrying out tasks compared to various possibilities, such as work
standards, targets or goals.
Performance can be defined as the final result of all activities carried out by the
company in accordance with predetermined criteria. Performance also reflects the
achievements made by an organization. The short-term goal of supply chain management is
to reduce inventory, cycle time, and productivity. The long-term goal of supply chain
management is to increase sales and profits.
2.2 Previous Research
According to research by Anatan (2010) supply chain management has a significant
influence on the achievement of organizational competitive advantage. Implementation of
various supply chain management practices such as strategic supplier partnerships,
relationship development, and supply chain management consumers, information sharing
and influence the achievement of competitive advantages in cost, quality, dependability,
flexibility and dimensions.
This research was conducted on manufacturing companies operating in Indonesia.
The manufacturing companies studied were manufacturing companies engaged in
automotive, technology, machinery, and computers. Of the five hundred questionnaires
distributed, a total of eighty-four questionnaires were returned and eligible for processing.
This study uses quantitative methods Supply chain management practices are also proven to
have an influence in improving supply chain performance. In this study, the hypothesis that
there is a direct effect of competitive advantage on organizational performance is not
supported.
Research conducted by Wulandari et. al., (2016) on manufacturing companies listed
on the Indonesia stock exchange in 2014. This research was conducted by sending 137
questionnaires to manufacturing companies and 64 questionnaires were returned. This study
uses quantitative research methods. Supply chain management has a positive effect on
company performance. This shows that the higher the level of implementation of supply
chain management in a company will result in better company performance.
Supply chain management also has a positive effect on competitive advantage. This
shows that the more superior a company is to other companies, the more the company's
performance will increase. Furthermore, the study found that the effect of supply chain
management on company performance is mediated by competitive advantage. In This study
also found that the competitive advantage variable acts as a mediating variable.
According to research conducted by Rahmasari (2011), supply chain management
practices have a positive and significant effect on competitive advantage. Data analysis is
done by discriminant analysis, which is to determine which predictor is the most dominant
in Supply Chain Management. This research case study on the creative industry in Central
Java province. This research was conducted using purposive sampling method, a number of
respondents were selected 105 small and medium enterprises (SMEs) as respondents
competitive advantage.
Researchers in this study used a research model conducted by Banerjee and Mishra
(2015). This study examines the effect of supply chain management on competitive
advantage and company performance. In this study, the supply chain management variable is
measured by four dimensions, namely supply and product management, customer relations,
level of information sharing, and quality of information sharing. Competitive advantage
variables are measured by three dimensions, namely accessibility, product, and service.
Company performance variables are measured by three indicators, namely return on
company capital, market share, and sales level. The questionnaires were distributed to
supermarket retail managers. The research was conducted on five hundred modern retail
store managers. This research is quantitative research. The results of the study show that
supply chain management has a significant effect on and firm performance.
2.3 Framework of Thought
The results show that supply chain management has a significant effect on competitive
advantage and firm performance.
1. Supply chain management
The concept of supply chain management implementation in this study is
presented through 21 question items formulated by Banerjee and Mishra (2015).
2. Competitive advantage
The concept of competitive advantage in this study is represented through 9
question items formulated by Banerjee and Mishra (2015).
3. Company Performance
The concept of Company Performance in this study is represented through 3
question items formulated by Banerjee and Mishra (2015).
2.4 Development Hypothesis
In this study there are two hypotheses used. The two hypotheses are that there is a
significant effect of supply chain management on competitive advantage and there is a
significant effect of supply chain management on company performance.
1. Effect of supply chain management on competitive advantage
The supply chain management research model in this study explains that supply
chain management practices have an influence on competitive advantage. Based on the
existing literature, a research model was developed that shows the relationship between
supply chain management practices, competitive advantage, and supply chain performance.
Supply chain management practices have an influence on competitive advantage through
price, quality, delivery, product innovation, and time to market (Tan et al, 2002).
In today's competition, business actors are required to realize that the competition
that occurs is competition between supply chain networks. Business actors in a supply chain
must be able to deliver products in accordance with consumer desires. A proper supply chain
management must be organized so that it will establish the right quality, quantity, price, time
and place for the services and products sold by the retailer. Such product and service criteria
will provide more offerings for consumers. This can also be a superior competitive strategy
compared to other retail business competitors, or commonly called competitive advantage.
Good supply chain management in the company will give the company a competitive
advantage. The principle of supply chain management is to perform the competencies
mastered by the company itself and provide parts that are not the competence of the
company to other parts of the supply chain. This will make the supply chain effective. In this
case, supply chain management will have an influence on goods distributed to retailers but
up to goods that are the needs of end consumers. With effective supply chain management,
the supply of goods to consumers will be fulfilled by paying attention to the value that is
important to consumers (high sales and low inventory levels) and serving consumers with
good service and products.
2. The influence of supply chain management on firm performance.
The conceptual model of supply chain management developed in this study shows
that supply chain management has a direct impact on firm performance (Shin et al., 2000).
Supply chain management has three objectives, namely cost reduction, capital reduction and
service improvement (Siagian, 2005). Of the three objectives, the cost reduction objective
means that by implementing supply chain management, companies can reduce the logistics
costs incurred, for example by choosing a transportation tool or model, distribution method
or system, warehousing, standards and services that minimize costs. Likewise, with the goal
of capital reduction, the implementation of supply chain management is expected to
improve company performance by increasing the rate of return on capital.
On the operational side of the company, supply chain management will help
companies to produce and distribute goods in the right quantity, location and time. With this
accuracy, it will certainly have an impact on increasing sales, profits, and market share
which are indicators of company performance. From this statement, it can be concluded that
supply chain management will be able to improve company performance.
3.1.1 Unit Analysis
The unit of analysis used in this study is the company or group level. The selection of
staff, managers or business owners as respondents is because they are considered to
understand business decisions related to supply chain management, Staff, managers, or
business owners as respondents are representatives of the company.
3.1.2 Population
Population is a generalization area consisting of objects or subjects that have certain
qualities and characteristics set by researchers to study and then draw conclusions (Sekaran,
2006). The population in this study are staff, managers, or owners of modern retailers in
Solo Raya who understand the relationship with their business suppliers. Included in modern
retail are retail stores that sell a variety of merchandise, sell goods at non-negotiable prices
(the right price), and have an organized management system. Based on this understanding,
the retailers included in this research population are hypermarkets, supermarkets,
minimarkets, distros, and pharmacies. The number of modern retailers is as follows:
From table 3.2 the author assumes based on observations made by researchers in
the first week of the research period, that in each hypermart there are an average of six staff
and managers who understand relationships with suppliers and are eligible to become
respondents. In supermarket retail, it is assumed that there are an average of two staff or
managers who understand relationships with suppliers and can become respondents. In
minimarket retail, it is assumed that there is an average of one manager who understands
supplier relationships and is eligible to be a respondents. In each pharmacy, it is assumed
that there is one manager or owner who understands the relationship with suppliers and can
become a respondent. In each distro it is assumed that there are 2 managers or staff who
understand relationships with suppliers and are eligible to become respondents. Table 3.2
shows that the total population is 318 modern retail managers or staff.
3.1.3 Sample
The sample is part of the population. The sample consists of several members taken from
the population.
Researchers used the Slovin formula for reference to determine the number of samples.
Slovin's formula is :
n = N / (1 + N.(e) )2
Description: n = Number of Samples
N = Total Population e = Error Tolerance Limit
Where the value of N is 318, the value of e is 10% and the result n is 76. Researchers
distributed 170 questionnaires and respondents who were willing to fill out and return their
questionnaires amounted to 110 questionnaires so that this limit had met the limit of
determining the sample criteria according to Slovin.
3.1.4 Sampling
In this study using purposive sampling technique, which is a technique for determining
research samples with certain considerations that aim to make the data obtained more
representative (Sekaran, 2006). Sample selection considerations in this study are:
a) Retail Stores are retailers that sell more than one type of goods.
b) Retail stores price goods at a predetermined and non-negotiable price.
3.4 Operational Definition of Variables and Their Measurement
3.4.1 Supply chain management
According to Chopra and Meindl (2013) supply chain management is the management
of all parts that handle customer demand either directly or indirectly. Supply chain
management is a sequence of organizations, facilities, functions, and activities involved in
the production and delivery of a product or service. The sequence starts from the basic
supplier of raw materials to the end customer. Facilities include forecasting, purchasing,
inventory management, information management, quality assurance, scheduling, product,
distribution, delivery, and customer service. The attributes of supply chain management are:
a) Supply and product management is the planning and organization of retail relationships
with suppliers.
b) level of information sharing is the level of communication and information sharing of
retail stores with suppliers.
c) Customer relationship is the level of relationship a retail store has with its customers.
d) quality of information sharing is the quality of information sharing of retail stores with
suppliers.
The construct is measured by 21 questions. The tool used to collect primary data in this
research is a questionnaire. Researchers used a questionnaire developed by Banerjee and
Mishra (2015). Supply chain management (Supply Chain Management) as an approach used
to achieve efficient integration of suppliers, manufacturers, distributors, retailers, and
customers.
3.4.2 Competitive Advantage
Competitive advantage is a combination of the end and the goal that the company
strives for with the tools (policies) by which the company tries to get there. Competitive
advantage is a strategy that strongly positions the company against competitors and that
gives the company the strongest possible competitive advantage (Kotler, 2001). Construct
indicators are measured using statements with 9 measurement indicators. The attributes of
competitive advantage are
a) Accesssbility is the ability of the product to be accessed by the customer.
b) Product is good product quality.
c) Service is the provision of reliable service.
Measurement of competitive advantage variables is done with nine statement items
(Banerjee and Mishra, 2015) and each statement item is assessed using a Likert scale with 5
alternative choices.
3.4.3 company performance
Company performance is the company's ability to achieve company goals by using
resources efficiently and effectively. Performance is a description of the level of
achievement of task implementation in an organization, in an effort to realize the goals,
objectives, mission, and vision of the organization (Bastian, 2001). Measurement of
company performance variables is carried out with three statement items (Banerjee and
Mishra, 2015) and each statement item is assessed using a Likert scale with 5 alternative
choices.
3.5 Instrument Research
The research instrument used in this study was a questionnaire distributed to modern
retail managers in Solo Raya. The questions in this research questionnaire consist of 33
question items obtained from the operational definition of the variables that have been in the
previous discussion.
3.6 Type Data
According to Sekaran (2006) defines primary data as data that directly provides data
to data collectors. Data obtained through questionnaires given to respondents given to
respondents who were sampled, namely modern retail managers in Solo Raya.
3.7 Collection Method Data
Before collecting data, researchers have conducted observations to several modern
retailers in Solo Raya. Observations began in early February 2017. This observation was
conducted to find information about the types of modern retail in Solo Raya. From the
results of this observation, researchers obtained information that there are several types of
modern retail in Solo Raya, such as: minimarkets, supermarkets, hypermarkets, distros,
accessories retail, vehicle spare parts retail, and others. There are very many types of
modern retail in Solo Raya. The author prioritizes which types of retail can be researched.
Consideration of the prioritized scale is based on the number of retailers in certain types of
retail and the ease of research in access to information from respondents in these types of
retail. After making observations, the author prioritized that the research would be
conducted on minimarkets, supermarkets, hypermarkets, distros, and pharmacies. This was
done with the consideration that these types of retailers have a larger number than other
types of retailers in Solo Raya.
Data collection for this study was conducted through questionnaires. The
questionnaires began to be distributed in early March 2017. The distribution of
questionnaires was carried out by first contacting retailers via telephone or visiting retailers
directly to ask permission to conduct research. The distribution of questionnaires started
from hypermarket, supermarket, and minimarket retail stores. While waiting for an answer
to the availability of filling out questionnaires from the three types of retail, researchers
distributed questionnaires to distro-type retail stores. To make it easier for the author, some
of the distribution of questionnaires to distros was done online.
The last distribution of questionnaires was to modern retail stores of the pharmacy
type in Surakarta. Questionnaire The answers in the questionnaire used in this study are
closed. The questionnaire was distributed to respondents to find out the actual conditions
through the answers stated by the respondents. The respondent's interpretation of the
questions asked is the same as the situation that really happened. In addition, the closed
questionnaire will help respondents with their busy schedule to provide information in this
study. In this study, researchers distributed questionnaires to managers through
questionnaires by offline or online.
3.8 Methods Analysis
3.8.1 Test Validity
The validity test aims to determine how precisely a test performs its measuring
function. The higher the validity of a measuring function, the higher the measurement hits its
target (Sekaran, 2006).For the validity test, Confirmatory Factor Analysis will be used with
the help of SPSS for windows version 18, where each question item must have factor
loading> 0.50 (Hair et al., 1998).
3.8.2 Reliability Test
The reliability of a measurement reflects whether a measurement can be free from
error, thus providing consistent measurement results under different conditions and on each
item in the instrument (Sekaran, 2006). To measure reliability, the measurement tool used is
the Cronbach Alpha analysis technique. The alpha coefficient category of a test is as follows
(Sekaran, 2006):
1) 0.8 - 1.0= good reliability
2) 0.6 - 0.799= acceptable reliability
3) =<0.6= poor reliability
To measure the reliability of this research instrument, Cronbach's Alpha was used
with the help of the program SPSS 18.0 for Windows computer. According to Hair et.al
(1998) an instrument is declared reliable if the Cronbach's Alpha coefficient results show a
value ≥ 0.60.
3.8.3 Normality Test
The purpose of the Normality Test is to determine whether the distribution of a data
is close to a normal distribution. The test criteria for the normality test are if the significance
number is more than 0.05, the data is normally distributed and if the significance number is
less than 0.05, the data is not normally distributed. The normality test is a test to determine
whether the empirical data obtained from the field is in accordance with a certain
distribution, in this case a normal distribution. In other words, whether the data obtained
from the population is normally distributed.
Data normality testing functions or aims to determine whether the distribution of
data obtained from distributing questionnaires to research respondents consisting of several
elements representing several subpopulation parties is normally or abnormally distributed.
Normally distributed means that the number of questionnaires given to each element applies
proportionally according to the number of subjects in each element (Agustina, 2010).
3.8.4 Analysis Descriptive
According to Sekaran (2006), descriptive methods are fact-finding with interpretation that
precise interpretation. Research descriptive It studies problems in society and the procedures
that apply in society and certain situations, including relationships, activities, attitudes,
views, and ongoing processes and influences of a phenomenon. In the descriptive method,
researchers may compare certain phenomena so that it is a comparative study. Sometimes
researchers conduct classification, as well as research on phenomena by setting a certain
standard or norm so that many experts call this descriptive method a normative survey. This
descriptive method also investigates the position (status) of phenomena or factors and sees
the relationship between one factor and another.
This descriptive statistical analysis has the aim of providing an overview (description) of
the data so that the data presented becomes easy to understand and informative for those
who read it. Descriptive statistics explain various data characteristics such as average, sum,
standard deviation, variance, range, minimum and maximum values and so on.
3.8.5 Kendall's Tau Correlation Analysis
Correlation analysis used for this category of data is used to find correlations where
the two data being correlated have ordinal data and the distribution of the data is not normal
(Agustina, 2010). Ordinal data is data obtained by categorization or classification, but
between these data there is a relationship. The data scale can be classified as strongly agree
given a mark of 5, agree given a mark of 4, neutral given a mark of 3, less agree given a
mark of 2, and strongly disagree given a mark of 1.
Ordinal data is characterized by unequal data positions. As in the example above, the
position of the answer strongly agree is above agree, the position of the answer agree is
above neutral, and so on. In ordinal data, math calculations cannot be done. It is impossible
for 1+2=3. It is impossible to strongly disagree + disagree = neutral.
The basis for decision making in the Kendall's Tau correlation test:
a) If the significance value is <0.05 then, it can be concluded that there is a significant
correlation between the variables being linked.
b) Conversely, if the significance value is > 0.05, it can be concluded that there is no
significant correlation between the variables being linked.
The criteria for the level of relationship (correlation coefficient) between variables
ranges from -1 to 1. The interpretation criteria are:
a) 0.00 to 0.20, meaning: almost no correlation
b) 0.21 to 0.40, meaning: low correlation
c) 0.41 to 0.60, meaning: medium correlation
d) 0.61 to 0.80, meaning: high correlation
e) 0.81 to 1.00, meaning: perfect correlation
DATA ANALYSIS AND DISCUSSION
This chapter discusses the results of the research that has been carried out, which
includes an overview of the object of research, descriptive analysis of the characteristics of
respondents and respondents' responses, exposure to validity tests, reliability tests and
hypothesis testing.
4.1 Profile Respondents
Respondent profiles are presented to determine the characteristics and responses of
respondents. A total of 170 questionnaires were distributed, 129 questionnaires were filled
out and returned to the author so that the response rate was 75.8%. This number is in
accordance with the Slovin formula in determining the sample size, namely a population of
318 modern retailers in Solo with a tolerance level of 10%, the result is 76 samples. Of the
129 questionnaires that have been filled out by respondents, 19 questionnaires are
considered inappropriate and cannot be used for processing. Thus, there are 110
questionnaires that are considered eligible for processing in the further research process.
4.2 Analysis Descriptive
The purpose of descriptive analysis is to determine the characteristics of respondents
and the responses given by respondents when answering question items in this study.
Respondents are owners, managers or staff who deal with suppliers of modern retail stores.
The 110 eligible questionnaires were then processed in the next research process, and the
respondent identity profile was obtained related to the respondent's gender, age, and type of
retail business.
1. Age of Respondent
Based on data from 110 respondents related to the age of the respondents, the following
results were obtained:
From table 4.1 it is obtained that respondents are dominated by ages 31-60 years with a
total of 92 people with details of 31-40 years of age totaling 42 people (38.18%), age
41-50 years old amounted to 28 people (25.45%), and 51-60 years old amounted to 22
people (20%). This is because at this age it is a productive and mature age as a retailer who
interacts with suppliers.
2. Gender of Respondents
Based on data from 110 respondents related to the gender of the respondents, the
following results were obtained:
Table 4.2 shows that the ratio of male and female respondents is almost balanced,
namely 47.27% for men and 52% for women. This shows that for modern retail in Solo
Raya, the role of men and women as professional actors in the retail sector is not too
differentiated as long as they have good performance. Although Greater Solo is an area thick
with eastern culture that considers women physically weaker, in the retail zone women are
still able to compete with male workers.
3. Type of Retail Business
Based on data from 110 respondents related to the type of retail business, the following
results were obtained:
From the table above, the highest distribution of respondents in the pharmacy retail
business type was 58.18%. This shows that pharmacies have high respondent responses. In
addition, the number of pharmacies as one type of modern retail is the largest type of
modern retail in Solo Raya. After pharmacies, the next distribution of respondents is based
on the number The largest percentages are hypermarket, distro, supermarket, and
minimarket at 16.36%, 12.72%, 9.09%, and 3.63 respectively.
%.
4. Respondent's response
1) Supply Chain Management
Based on the number of respondents' responses to the supply chain management
question items, we categorized the level of supply chain management implementation
between modern retailers and their suppliers into three categories with the following
intervals:
Supply Chain Management
Based on table 4.4.1 shows that 100% of respondents have a high response to the
question items on the variable implementation of supply chain management that exists
between the retail industry and their suppliers. This shows that most suppliers to retail have
a high level of cooperation and are willing to share information with retailers about the
products they sell and the products they sell end customer needs. Good communication in
business will benefit both parties.
2) Competitive Advantage
Based on the number of respondents' responses to the competitive advantage
question items, the researcher categorized the level of supply chain management
implementation shared between modern retailers and their suppliers into 3 categories with
the following intervals:
Competitive Advantage
Table 4.5.1 shows that 100% of respondents have a high response to the question
items on the competitive advantage variable. This indicates that modern retail has a
competitive advantage over competitors.
3) Company Performance
Based on the number of respondents' responses to the company performance
question items, the researchers categorized the level of The implementation of supply chain
management between modern retailers and their suppliers into 3 categories with the
following intervals:
4.3 Correlation Analysis Results and Hypothesis Discussion
Table 4.12 shows the results of the independent variable correlation test, namely
supply chain management on competitive advantage variables and company performance
variables. The correlation test results of the supply chain management variable on
competitive advantage and the supply chain management variable on company performance
show the numbers 0.004 and 0.042. Both significance figures have a value smaller than 0.05,
this indicates that the correlation test results are significant. Supply chain management
variables significantly affect competitive advantage and company performance.
The correlation coefficient on the correlation test of supply chain management
variables on competitive advantage and supply chain management variables on company
performance shows 0.344 and 0.215. This figure has a positive value. This shows that there
is a positive influence of the supply chain management variable on competitive advantage
and company performance. Increasing supply chain management in the company will
increase the company's competitive advantage and performance.
The correlation coefficient on the supply chain management variable on competitive
advantage and company performance shows 0.344 and 0.215, based on the scale of the
relationship level based on the correlation coefficient value, both correlations have low
strength. This shows that supply chain management variables have an influence on
competitive advantage variables and company performance variables, but at a low level of
influence.
1. The influence of Supply Chain Management on competitive advantage.
Based on the results of the analysis that examines the effect of supply chain management
on competitive advantage, the correlation coefficient shows a significance value of 0.004.
The magnitude of this value shows significant results because the magnitude of the
significance value <0.05, thus indicating a significant influence between the implementation
of supply chain management and competitive advantage. Thus indicating that hypothesis 1
in this study is supported.
The results of this study are in line with previous research conducted by Banerjee (2015),
Tan et al (2002), Anatan (2010), and Rahmasari (2011). The results of this study indicate
that the implementation of supply chain management can lead to competitive advantages in
modern retail in Solo Raya. The implementation of supply chain management can lead to
competitive advantages in modern retail in Solo Raya which can be seen from services,
products and of course competitive prices. With a competitive advantage, modern retail
stores will strive to provide quality goods and services.
2. The influence of Supply Chain Management on company performance
Based on the results of the analysis that examines the effect of supply chain management
on company performance, the regression coefficient results show a significance value of
0.000. The magnitude of this value shows significant results because the magnitude of the
significance value <0.05, thus indicating a significant influence between the implementation
of supply chain management on company performance. Thus indicating that hypothesis 2 in
this study is supported.
The results of this study are in line with previous research conducted by Banerjee (2015),
Shin et al (2002), Anatan (2010), and Rahmasari (2011). In supply chain management,
strategic supplier partnerships, information quality, and relationships with consumers have
an influence on several aspects of company performance. Effective and optimal supply chain
management can increase productivity, market share and customer growth. This is in line
with the results of this study showing that modern retailers in Solo Raya have supply chain
management, so organizational performance will increase. The implementation of supply
chain management will provide an increase in retail performance in Solo Raya in terms of
finance, market share and sales. With increasing sales will also increase the company's
return on sales.
Conclusion:
Based on the results of statistical analysis in the discussion of the previous chapter
regarding the implementation of supply chain management, competitive advantage, and
company performance, the study conducted on modern retail in Solo Raya can be concluded
as follows:
a. Supply chain management has a significant and positive effect on competitive advantage.
b. Supply chain management has a significant and positive effect on company performance.
This research was conducted with limitations and shortcomings. The shortcomings and
limitations of this research are as follows:
a. This research was only conducted within the scope of one sector, namely modern retail in
Solo Raya, so that the research results have not been able to generalize across sectors.
b. In explaining competitive advantage and company performance, there are still many
variables other than supply chain management that can be studied that may affect
competitive advantage and company performance.
