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The effect of supply chain management and total quality management on operational performance through competitive advantage

Author

Listed:
  • Salachudin Emir

    (Master of Management, Faculty of Economics and Business, Mercu Buana University, Jakarta, Indonesia)

  • Niken Sulistyowati

    (Master of Management, Faculty of Economics and Business, Mercu Buana University, Jakarta, Indonesia)

Abstract

Supply chain management is the process of integrating critical business procedures throughout the supply chain to generate value for stakeholders and customers. Total Quality Management is a system that emphasises quality and focuses on ensuring customer satisfaction. Customer satisfaction is a very important instrument for operational performance and business continuity. Therefore, this study aims to determine and analyse the effect of supply chain management (SCM) and total quality management (TQM) on operational performance (OP) mediated by competitive advantage (CA). Sample collection was carried out by distributing questionnaires, using purposive sampling technique, which is one of the non-probability sampling categories. The data analysis method uses structural equation model-partial least square (SEM-PLS). The results stated that the strategy of implementing supply chain management and total quality management together can increase competitive advantage. Increased competitive advantage can improve operational performance. The suggested policy implications are that the company can continue to maintain good relations with partners, produce products according to customer desires, competitive prices and timely products. Key Words:Supply Chain Management, Total Quality Management, Competitive Advantage, Operational Performance, SEM-PLS

Suggested Citation

  • Salachudin Emir & Niken Sulistyowati, 2024. "The effect of supply chain management and total quality management on operational performance through competitive advantage," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 13(1), pages 27-37, January.
    • Handle: RePEc:rbs:ijbrss:v:13:y:2024:i:1:p:27-37
    DOI: 10.20525/ijrbs.v13i1.3087
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