The role of company competitiveness as mediation variable the impact of supply chain practices on operational performance

Abstract

This study aimed to explain the role of supply chain practices on operational performance, and supply chain practices on company competitiveness and to analyze the impact of company competitiveness on operational performance. In addition, we also investigate the impact of supply chain practices on operational performance through role of company competitiveness as mediation variable. The study was conducted in South Sulawesi Province, Indonesia. Primary data were collected by questionnaire instrument from 108 food and beverage companies. Method of analysis was both descriptive statistical analysis, and Structural Equation Modelling (SEM). The study also used Sobel test to determine significance level of mediation role in the model. The results show that supply chain practices could give a positive impact on operational performance. Supply chain practices also gave a positive impact and significant on company competitiveness. Then, company competitiveness had a positive impact and significant on operational performance. Additionally, supply chain practices also had a positive impact on operational performance indirectly through the role of company competitiveness as mediation variable. Hence, supply chain practice was the most important variable to increase both company competitiveness and operational performance. Each company is recommended to implement this variable as competitive weapon in order to get a better operational performance and competitiveness as well.

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