The Effect of Supply Chain Management Practices on Business Performance Mediated By Supply Chain Performance in MSMEs of Snack Food Industry in Padang

  • Muthia Roza Linda, Gesit Thabrani, Rahmad Afandi Chandra, Firman

Abstract

This study aimed to analyze: (1) the effect of supply chain management practices on business performance of Micro, Small and Medium Enterprises (MSMEs) of the snack food industry in Padang; (2) the effect of supply chain management practices on supply chain performance in Micro, Small and Medium Enterprises (MSMEs) of the snack food industry in Padang; (3) the effect of supply chain performance on business performance of Micro, Small and Medium Enterprises (MSMEs) of the snack food industry in Padang; and (4) the effect of supply chain management practices on business performance mediated by supply chain performance in Micro, Small and Medium Enterprises (MSMEs) of the snack food industry in Padang. This study is a causative descriptive study in nature. The population in this study was all Micro, Small, and Medium Enterprises (MSMEs) of the snack food industry in Padang with a total of 131 respondents. In this study the number of samples is 100 samples and taken using proportional clustered simple random sampling―the samples are selected in each class or group that matches the proportion, added by each family member to the same sample. This study used PLS (Partial Least Square) data analysis method using SmartPLS3 software―a variance-based structural equation analysis (SEM) that can simultaneously test the measurement model and structural model. Regarding the proposed causal model, the data confirmed the relationship established in the hypotheses. Therefore, it can be stated that (1) supply chain management practices had a significant positive effect on business performance of Micro, Small and Medium Enterprises (MSMEs) of the snack food industry in Padang; (2) supply chain management practices had a significant positive effect on supply chain performance in Micro, Small and Medium Enterprises (MSMEs) of the snack food industry in Padang; (3) supply chain performance had a significant positive effect on business performance of Micro, Small and Medium Enterprises (MSMEs) of the snack food industry in Padang; and (4) supply chain performance could be a mediator for the indirect relationship between supply chain management practices and business performance because the direct effect of supply chain performance on business performance was significant. These analyses highlight the positive effect of supply chain management practices and supply chain performance on business performance and the role of supply chain performance in mediating the relationship between supply chain management practices and business performance. This is seen in this connection from an empirical point of view. This study only limits with some variables.

Published
2020-06-06
How to Cite
Muthia Roza Linda, Gesit Thabrani, Rahmad Afandi Chandra, Firman. (2020). The Effect of Supply Chain Management Practices on Business Performance Mediated By Supply Chain Performance in MSMEs of Snack Food Industry in Padang. International Journal of Advanced Science and Technology, 29(04), 4236 - 4251. Retrieved from http://sersc.org/journals/index.php/IJAST/article/view/24814