THE EFFECT OF SUPPLY CHAIN MANAGEMENT ON COMPETITIVE ADVANTAGE AND FIRM PERFORMANCE (Case Study: The Fish Processing Industry in Bitung North Sulawesi Province in Indonesia)

Abstract

Supply Chain Management (SCM) has been recognized as a strategy that could lead firm to gain competitive advantage, other than to achieve greater firm performance. This study aimed to analyze the effect of supply chain management to competitive advantage and firm performance, the effect of competitive advantage and firm performance and influence on the performance of SCM in Firm through a competitive advantage in the fish processing industry in Bitung North Sulawesi Province. Research conceptualizes and develops three dimensions of SCM practice (customer relationship management, internal supply chain management, supplier relationship, management) and tests the relationships between SCM, competitive advantage, and firm performance. Data for the study were collected from 21 firm and the relationships proposed in the framework were tested using partial least square (PLS)  The results indicate that SCM, which consists of three dimensions of customer relationship management, internal supply chain management and supplier relationship management, has a positive impact on competitive advantage and performance, competitive advantage has positive effect on the performance and the firm's performance depends on the competitive advantages of each of the fish processing industry. SCM in the industry of fish processing in the city of Bitung in North Sulawesi has positive effect on competitive advantage of firm. As for the performance of the enterprise, SCM also direct effect. The performance of fish processing firm directly been affected by the competitive excellence and SCM practice

Keywords: Supply chain management; Competitive Advantage; Firm Performance;

                    Partial least Square