Professional Documents
Culture Documents
OPEN ACCESS
e ISSN 2302-6332
p ISSN 1693-5241 CITATION
Zainurrafiqi and Gazali. 2023. Supply Chain Digitalization, Green Supply Chain, Supply Chain Re-
silience Toward Competitiveness and MSMEs Performance. Jurnal Aplikasi Manajemen, Volume
22, Issue 1, Pages 175–192. Malang: Universitas Brawijaya. DOI: http://dx.doi.org/10.21776/ub.
Copyright (c) 2024 Jurnal Aplikasi Manajemen jam.2024.022.01.14.
175
JURNAL APLIKASI MANAJEMEN VOLUME 22 ISSUE 1 MARCH 2024
digitalization and supply chain resilience (Nan- tava (2007) reported that Green Supply Chains in-
yang and Hong, 2023), supply chain digitalization clude green design, purchasing, production, distri-
(Chiu, 2021), and Green Supply Chain Manage- bution, logistics, marketing, and reverse logistics.
ment (Wang, 2018), this research tries to fill this Walker et al. (2008) stated that the green supply
gap by integrating a conceptual model that con- chain concept covers all phases of a product’s life
nects Supply Chain Digitalization, Green Supply cycle, from the extraction of raw materials through
Chain, Supply Chain Resilience, Competitiveness the design, production and distribution phases to
and MSMEs Performance. Apart from that, the an- the use of the product by consumers and its dispos-
tecedents of Supply Chain Digitalization, Green al at the end of the product’s life cycle. Green Sup-
Supply Chain, and Supply Chain Resilience are ra- ply chain practices are extremely extensive. Simi-
rely researched, especially in MSMEs in Indone- lar to the concept of Green Supply Chains, the bo-
sia. undary of Green Supply Chains depends on the re-
This research will increase MSMEs actors' searcher's goal ((Srivastava, 2007; Yildiz-Çanka-
understanding of the vital role of supply chain dig- ya and Sezen, 2019).
italization, green supply chains, and supply chain
resilience in strengthening competitiveness, which Supply Chain Resilience
will have an impact on MSMEs performance. This In the field of supply chains, Supply Chain
research aims to examine and analyze the influence Resilience generally refers to a company's ability
of supply chain digitalization on competitiveness, to be vigilant, respond quickly and adapt to chang-
the influence of green supply chains on competi- es caused by supply chain disruptions. However,
tiveness, the influence of supply chain resilience scholars often refer to “the systematic ability of a
on competitiveness, the influence of competitive- supply chain to recover in a timely manner or achi-
ness on MSMEs performance and the influence of eve a new and more ideal state when disruptions
Supply Chain Digitalization, Green Supply Chain, occur” in defining resilience (Christopher, 2004).
Supply Chain Resilience on MSMEs Performance Resilience is described as an adaptive phenome-
with Competitiveness as a mediating variable. non and seen as an emergent phenomenon. Nowa-
days, the definition of Supply Chain Resilience
LITERATURE REVIEW has attracted the attention of scholars (Nawawi,
Supply Chain Digitalization 2014; Pu, 2023). Most of these studies have been
Legner et al. (2017) stated that digitalization conducted from a capability’s perspective, mainly
refers to the processes associated with converting covering the topics of flexible capabilities (Zhou
analog signals into digital models and the impact et al., 2022), responsiveness, and recovery (Chow-
of such technology caused by its adoption and ope- dhury, 2016). Closs (2004) was the first to propose
ration. Digitalization is starting to receive great at- a definition of Supply Chain Resilience, arguing
tention from organizations worldwide, as it brings that supply chains can survive and recover from
great benefits to many companies. Digitalization damaging events. Pettit and Fiksel (2010) define
in the supply chain allows the maximum use of di- resilience as a balanced state of vulnerability and
gital technology to plan and execute transactions, capability. Chowdhury (2016) defines Supply Cha-
communications and actions (Sanders and Swink, in Resilience as the ability of a supply chain to pre-
2020). vent disruptions by increasing flexibility levels and
responding quickly to and recovering from disrup-
Green Supply Chain tions.
Green Supply Chains can be seen as logistic
structures that guarantee the production and distri- Competitiveness
bution of products globally in an environmentally Competitiveness refers to the capacity to
friendly manner (Barbosa-Póvoa, 2009). To achi- achieve at a greater level than others in the same
eve such a goal, companies must invest in the de- sector or market through credit and resources
sign and planning optimization of their logistic (Nkuda, 2016). As with Competitiveness, the or-
structures while accounting for the trade-off be- ganization has an edge when its value-creating
tween profits and environmental impacts. Srivas- strategy is not pursued by its existing or future ri-
WWW.JURNALJAM.UB.AC.ID 177
JURNAL APLIKASI MANAJEMEN VOLUME 22 ISSUE 1 MARCH 2024
vals (Gareche et al., 2017). As a result, an orga- exemplary process for increasing visibility and
nization with a competitive edge will outperform transparency across the supply chain, as it will fa-
existing or potential competitors (Kang and Na, cilitate the rapid collection and sharing of inform-
2020). An organization’s business plan manipula- ation for all stakeholders. With good visibility and
tes the various resources it has direct control over transparency, companies can integrate planning
to gain competitiveness. Resource management and innovation and provide better services to meet
and competitive strategy play a major role in creat- customer needs. Digitalization in the supply chain
ing Competitiveness (Sri, 2020). Competitive stra- can make the level of competitiveness jump for-
tegy is viewed by Varanavicius and Navikaite ward. Besides that, supply chain digitalization can
(2016) as an instrument for maximizing resources provide opportunities for MSMEs to increase rev-
and gaining an edge in the marketplace. If one do- enue or innovation rather than reduce costs through
es not have control of distinctive resources, one’s operational efficiency (Liu and Weisheng, 2021).
competitive approach may not be effective. The In this regard, we propose the following hypothe-
measures of Competitiveness used here are cost sis:
advantage, Differentiation Advantage, and tech- H1: Supply Chain Digitalization has a significant
nological advantage. effect on competitiveness.
has penetrated every process in supply chain man- ce will be strong and grow significantly in crises,
agement, starting from raw materials, production, thereby minimizing losses (Cagliyan et al., 2022).
storage, packaging, and shipping to product distri- Furthermore, continuous innovation in business
bution. Green production and process innovation operations will help companies win competition
will increase competitiveness and provide a good through productivity and profits (Zhou et al., 2022).
image for the company. Competitiveness also in- Therefore, companies with good supply chain re-
cludes the quality of production processes that silience will have a competitive edge to grow faster
produce environmentally friendly products (Ngu- and win the competition from their competitors.
yen and Le, 2020). By implementing green prod- Research conducted by Behl (2022) shows that
uction processes, companies can reduce costs and supply chain resilience affects company perform-
improve the performance of the production pro- ance and competitiveness. Based on the explana-
cess and the entire supply chain process. The green tion above, we propose the following hypothesis:
concept has penetrated every supply chain man- H3: Supply chain resilience has a significant ef-
agement process, from raw materials, production, fect on competitiveness.
storage, packaging, and shipping to product distri-
bution. Green production and process innovation Competitiveness and MSMEs Performance
will increase competitiveness and provide a good Competitive MSMEs always have the abil-
image for the company. Competitiveness also in- ity to understand changes in market structure and
cludes the quality of production processes that pro- choose effective marketing strategies to improve
duce environmentally friendly products (Kustianti company performance. Company performance re-
and Murwaningsari, 2023). By implementing green fers to how companies achieve their production,
production processes, companies can reduce costs human resource, marketing and financial goals
and improve the performance of production pro- (Abeysekara et al., 2019). Competitiveness refers
cesses and the entire supply chain process. Based to the ability of companies to create defensive po-
on the explanation above, we propose the follow- sitions against their competitors. Competitive ad-
ing hypothesis: Competitiveness also includes the vantage or competitiveness is the ability of a com-
quality of production processes that produce envi- pany to achieve economic benefits above the prof-
ronmentally friendly products (Dong et al., 2021). its that competitors can achieve in the same mar-
By implementing green production processes, ket. Competitiveness refers to a company's results
companies can reduce costs and improve the per- in developing attributes that enable it to outper-
formance of production processes and the entire form its competitors in a way that makes it diffi-
supply chain process. Competitiveness also inclu- cult or impossible for competitors to imitate.
des the quality of production processes that produ- Meanwhile, competitiveness and firm per-
ce environmentally friendly products (Nguyen and formance are often used interchangeably (Das and
Le, 2020). By implementing green production pro- Canel, 2023). Viewed as a means to an end, com-
cesses, companies can reduce costs and improve petitiveness is often thought to be facilitated by su-
the performance of production processes and the perior value creation, thus leading to increased per-
entire supply chain process. Based on the explana- formance (Afraza et al., 2021). Therefore, the com-
tion above, we propose the following hypothesis: petitiveness and performance of SMEs are two dif-
H2: Green supply chains have a significant effect ferent constructs with seemingly complex relati-
on competitiveness. onships. But overall, research has shown a signif-
icant relationship between competitiveness and
Supply Chain Resilience and Competitiveness firm performance (Zadeh et al., 2020).
Several studies show that a resilient compa- H4: Competitiveness has a significant effect on
ny can be seen from its growth indicators, for ex- MSMEs performance.
ample, financial and company strength (Siagian et
al., 2022). These various studies emphasize the im- Supply Chain Digitalization, Competitiveness
portance of having a strong supply chain to meas- and MSMEs Performance
ure a company's competitiveness (Siagian et al., Digitalization in the supply chain can incre-
2021). Companies with high supply chain resilien- ase the efficiency of business processes through
WWW.JURNALJAM.UB.AC.ID 179
JURNAL APLIKASI MANAJEMEN VOLUME 22 ISSUE 1 MARCH 2024
systems, including reduced production and trans- companies need to increase their competitive ad-
action costs, increased inventory turnover, stream- vantage to compete for market share (Wu et al.,
lined logistics steps, automated manufacturing, 2017). Green" practices used by companies in sup-
and faster completion of electronic collections and ply chain management will create competitive ad-
payments (Liu and Weisheng, 2021). Companies vantages that can improve company performance
can increase the yield and quality of their produc- (Lee et al., 2015). With competitive advantage,
tion and minimize the number of defects by mak- companies will gain benefits, including reduced
ing production processes smarter through the use costs by preventing pollution, stakeholder moni-
of digital technology and more and better data toring of products that competitors cannot imitate,
(Bjorkdahl, 2020). Additionally, digitalization has and synergistic long-term development (Pålsson
the potential to increase product development ef- and Kovács, 2014). It will help companies improve
ficiency and speed up product design by reducing their performance.
the need for physical artifacts and prototypes H6: Green Supply Chainhas a significant effect
(Bjorkdahl, 2020). Apart from increasing internal on MSMEs performance mediated by Com-
efficiency, digital transformation is able to de- petitiveness.
velop the company by providing added value for
customers. Digital systems and processes facilitate Supply Chain Resilience, Competitiveness, and
the customer journey by providing transactions Firm Performance
and delivering efficient services, which can meet Over time, successful events in the business
customers' increasing demand for personalized world have increased the importance of supply cha-
products (Gorbach, 2017). This phenomenon is, in management, regardless of the size of an organ-
for example, in the case of Scania, one of the 26 ization. Organizations invest optimally to streng-
case companies in Björkdahl's (2020) study, the then supply chain management. Initially, the sup-
results of which reveal that digitalization brings ply chain was considered a large-scale enterprise
new business growth opportunities. A company concept, but time has proven that size does not
will most likely reduce its cash conversion cycle matter in this context. Proper supply chain mana-
by increasing supply-side digitalization (Magretta, gement is today's demand. Variations in the busi-
1998), directly affecting its profitability, increas- ness environment occur when sustainable appro-
ing its competitiveness and creating such (Ricard- aches or the provision of goods to customers are
ianto et al., 2023). In the existing literature, the disrupted (Sri, 2020). The ultimate impact of var-
digitalization of supply chains is believed to ben- ious situations in countries affects the needs of
efit organizations. However, academic investiga- companies and customers (Ploenhad, 2019). The-
tions into how and why digitalization can improve refore, there is a significant relationship between
performance for companies in the supply chain consumers and companies when supply chain ma-
context are still limited (Björkdahl, 2020). nagement effectively drives the right strategy to
H5: Supply Chain Digitalization has a significant overcome problems and helps companies achieve
effect on MSMEs performance mediated by significant performance (Agyabeng-Mensah and
Competitiveness. Ahenkorah, 2019). Supply chain management is a
global measure that came into force a few years
Green Supply Chain, Competitiveness and ago. The rapid adaptation of supply chain manage-
Firm Performance ment has enabled companies to achieve goals in a
Previous research shows that a company's very short time (Oh and Ryu, 2019). Where com-
Green Supply Chain can influence performance. munication occurs, the role of the supply chain
However, in testing the influence of Green Supply significantly incorporates a dominant dimension
Chain on company performance, it is necessary to for the recovery of superior performance while
consider mediating variables (Dian, 2022). In this maintaining competitive advantage globally (Saf-
case, first, the Green Supply Chain influences kaur, 2019). The introduction of supply chain ma-
competitive advantage and second, competitive nagement is clearly stated in the literature as hav-
advantage influences company performance. Com- ing a significant impact on firm performance and
petitive advantage is a mediating variable because competitive advantage.
H7: Supply Chain Resilience a significant effect disruptions, the company has a system that can
on MSMEs performance mediated by Com- quickly respond or adapt to supply chain disrup-
petitiveness. tions, the company has a system that can quickly
restore operational conditions to normal after a
METHOD supply chain disruption, and the company has suf-
Measurement Scale ficient resources to handle supply chain disrupti-
The variables in this study were measured ons. Meanwhile, the endogenous variable is Com-
using a Likert scale with a range from 1 to 5, whe- petitiveness, which was adopted from Tarigan et
re 1 equal "Strongly Disagree" and 5 equals "Stro- al. (2018) and Menike (2019), with indicators na-
ngly Agree". The variables studied consist of exo- mely lower production costs than competitors, lo-
genous variables and endogenous variables. Exog- wer distribution costs than competitors, lower sell-
enous variables including Supply Chain Digitali- ing prices than competitors, better quality reputati-
zation adopted from Ganbold et al. (2020), Xi et on than competitors, product uniqueness from the
al. (2022), and Çankaya and Sezen (2019) with in- customer's perspective, loyal customers to the pro-
dicators, namely electronic application for coordi- duct compared to competitors, and better delivery
nation with internal stakeholders, electronic appli- accuracy than competitors. MSMEs performance
cation for coordination with external stakeholders, adopted from Menike (2019), with indicators na-
electronic application to process administrative ac- mely Financial Performance and Non-Financial
tivities, electronic applications used in real-time, Performance.
the electronic application used is accurate, and re-
liable electronic applications. The Green Supply Population and Sample
Chain adapted from Zhou et al. (2022) and (Liu The population in this research is MSMEs
and Lee, 2018) with indicators namely, The com- managers in Pamekasan Regency. The number of
pany has the right system regarding green issues, samples in this research was 400 MSMEs manag-
The company plans to purchase green raw materi- ers.
als, The company implements green production
processes, The company uses a green distribution Method of Collecting Data
system, and company and external (suppliers and The main source of this research is primary
customers) jointly address environmental issues data. Researchers used a questionnaire to obtain
and Supply Chain Resilience was adopted from information by dealing directly with MSMEs Ma-
Siagian et al. (2021), Abeysekara et al. (2019) and nagers in Pamekasan Regency and asking in-depth
Behl (2022), with indicators namely the company questions.
has a system that can quickly warn of supply chain
Supply Chain
Digitalization
Supply Chain
Resilience
WWW.JURNALJAM.UB.AC.ID 181
JURNAL APLIKASI MANAJEMEN VOLUME 22 ISSUE 1 MARCH 2024
Index Results
Chi-squire (χ2) 450.23
Chi-squire DF 190
Chi-squire (χ2/df) 2.36
Goodness of Fit (GFI) 0.92
Adjusted Goodness of Fit (AGFI) 0.93
Root Mean Square Error of Approximation (RMSEA) 0.04
Root Mean Square of Residual (RMR) 0.05
Normed fit index (NFI) 0.95
Non-normed Fit Index (NNFI) 0.96
Comparative fit index (CFI) 0.97
Source: Processed Data (2023)
Data analysis technique ble testing. The variables in this study were tested
This research uses SEM (Structural Equ- using Standardized Loading and Composite Reli-
ation Modeling) analysis to investigate linear re- ability. The Composite Reliability calculations are
lationships between variables, hypothesis testing shown in Table 2, where values between 0.8 and
and causal relationships between variables using 0.9 are obtained. Fornell and Larcker (1981), the
AMOS 17 software. composite reliability value is acceptable if greater
than 0.60.
RESULTS Validity testing in this study using Confirm-
Inferential Statistical Analysis atory Factor Analysis to measure the value of Con-
Data analysis used AMOS software with the vergent Validity. Table 2 presents the following
Structural Equation Model (SEM) method. There information: the first is the t value, the second is
are two stages in the Structural Equation Model related to the Standardized Loading value, and ba-
(SEM). The first stage is the Measurement Model, sed on the calculations in Table 4, it can be conclu-
and the second is the Structural Model (Kaplan, ded that for all variables in this study, it is signifi-
2009). cant, namely a value obtained greater than 1.96.
This proves that the path coefficient in this study
Measurement Models Goodness Fit Indices is significant, so it can be concluded that all indi-
Table 1 showed that the following results cators in this study have met the standard require-
are obtained, namely 2/df-ratio of 2.36, which is ments for calculating Convergent Validity (Ander-
in the 2-3 interval, which means the model has met son, 1988).
the criteria to accept the model. Meanwhile, for
the GFI, NFI, NNFI, and CFI assessment, the val- Structural Models
ue obtained is greater than or close to 0.9. It means This study uses Structural Equation Model
that the calculations related to GFI, NFI, NNFI, (SEM) analysis to test the research hypothesis.
and CFI have met the model requirements criteria, Overall, the test results for the goodness fit of the
so it can be concluded that the model is acceptable. structural model can be seen in Table 3. The Chi-
As for the RMSEA calculation, a value of 0.04 is square (χ2) /df-ratio value is 2.31, according to
obtained, so it can be concluded that this value is Schumacker and Lomax (2004). Usually, the ac-
still acceptable. So, the measurement as a whole cepted ring values for chi-squared are 1 to 3. GFI
meets the standardization of assessment on the and NNFI are still accepted because they are great-
measurement model fit indices. er than 0.8 and close to 0.9. RMSEA is still ac-
cepted because the value equals or less than 0.1.
Validity and Reliability Overall, the requirements for goodness of fit indi-
Reliability testing in this research has met ces of structural models in the structural model
the standardization requirements regarding varia- have been accepted. In the structural model, RNFI
should be greater than 0.9; closer to 1 is better. is very useful for choosing a model that simultane-
RPR is to detect the structural model to the parsi- ously maximizes fit and parsimony in the structur-
mony degree. Ring Value starts from 0.0 to 1.0; al part of the model. With higher RPFI values, it is
the bigger, the better the fit (goodness of fit). RPFI more necessary.
WWW.JURNALJAM.UB.AC.ID 183
JURNAL APLIKASI MANAJEMEN VOLUME 22 ISSUE 1 MARCH 2024
Supply Chain
Digitalization
MSMEs
Green Supply Chain Competitiveness
Performance
Supply Chain
Resilience
the dependent variable, obtained an r2 value of petitiveness. The results support the research by
0.85, and "MSMEs Performance" had an r2 value (Fahad and Nwagwu, 2023) that there is a positive
of 0.95. Kline (2016) stated that the r2 influence relationship between Supply Chain Digitalization
size categories are small 0.02, medium 0.13, and and Competitiveness. Based on this information,
large 0.26. So, it can be concluded that the Compe- it can be concluded that there is a significant relati-
titiveness and Performance of MSMEs have a very onship between supply chain digitalization and the
high contribution. The results of the path analysis competitiveness of MSMEs in Pamekasan Regen-
can be seen in Table 4. cy. This condition shows that digitalization of the
supply chain can improve a company's competiti-
Sobel test veness. This research aligns with research that sta-
The Sobel test is carried out to test whether tes that the digitalization of the supply chain aff-
a variable can be an intervening variable. When ects competitiveness (Harsono and Kiswara, 2022;
there is an intervening variable, a mediating effect Novianti et al., 2022; Bjorkdahl, 2020).
will usually appear with an indirect influence on
the direct relationship between the two variables Green Supply Chain and Competitiveness
(Hayes, 2004). This study tests whether Competi- Green supply chains have a positive and
tiveness indirectly influences the relationship be- significant effect on competitiveness. It shows that
tween Supply Chain Digitalization, Green Supply a green supply chain is very important for creating
Chain, and Supply Chain Resilience on MSMEs competitiveness. Based on this information, it can
Performance. be concluded that there is a significant influence
between the Green Supply Chain and the Compet-
Sab = √𝑏 2 𝑠𝑎2 +𝑎2 𝑠𝑏 2 + 𝑠𝑎2 𝑠𝑏 2 itiveness of MSMEs companies in Pamekasan Re-
gency. Therefore, the described Green Supply
The influence of Supply Chain Digitaliza- Chain can have an impact on the Competitiveness
tion (X1) on MSMEs Performance (Y) through of the company. Furthermore, the company's com-
Competitiveness (Z). The Sobel test statistic value petitiveness, such as having better delivery accu-
is 5.26, which means it is greater than 1.96. It can racy than competitors and customers who are loyal
be concluded that the Competitiveness (Z) is an to the product compared to competitors, is a solid
intervening variable between the Supply Chain basis for the company to compete (Çankaya and
Digitalization (X1) and MSMEs Performance (Y). Sezen, 2019; Chhabra et al., 2021; Novitasari and
The influence of Green Supply Chain (X2) Tarigan, 2022). This condition shows that with a
on MSMEs Performance (Y) through Competi- good Green Supply Chain system, environmental
tiveness (Z). The Sobel test statistic value is 5.10, problems can be solved jointly by companies, sup-
which means it is greater than 1.96. It can be con- pliers or customers (Dong et al., 2021; Nguyen and
cluded that Competitiveness (Z) is an intervening Le, 2020; Xi et al., 2022; Gazali and Zainurrafiqi,
variable between the Green Supply Chain (X2) 2023). One of them is a Green Supply Chain sys-
and MSMEs Performance (Y). tem, which will increase production efficiency and
The influence of Supply Chain Resilience require less time and resources. This efficiency can
(X3) on MSMEs Performance (Y) through Com- also reduce production and distribution costs to
petitiveness (Z). The Sobel test statistic value is make product selling prices more competitive. In
4.63, which means it is greater than 1.96. It can be addition, product delivery times will be more pre-
concluded that the Competitiveness (Z) is an inter- cise so that customers will feel happy and custo-
vening variable between the Supply Chain Resili- mer loyalty will increase. This research is in line
ence (X3) and MSMEs Performance (Y). with research which states that Green Supply Cha-
in affects company Competitiveness (Rozudin and
DISCUSSION Mahbubah, 2021; Pellondou and Santosa, 2022;
Supply Chain Digitization and Competitiveness Kustianti and Murwaningsari, 2023).
Supply chain digitization has a positive and The company's ability to implement green
significant effect on competitiveness. It shows that purchasing management is a unique ability to im-
supply chain digitization is essential to create com- prove company performance. Therefore, green
WWW.JURNALJAM.UB.AC.ID 185
JURNAL APLIKASI MANAJEMEN VOLUME 22 ISSUE 1 MARCH 2024
supplier management is also possibly called green et al., 2020) shows that supply chain resilience af-
purchasing management, which has an impact on fects company performance and competitive ad-
various aspects of company performance. For ex- vantage.
ample, a company can reduce production costs by
involving its suppliers in several green initiatives, Competitiveness and MSMEs performance
such as material recycling, environmentally friend- Competitiveness has a positive and signific-
ly packaging, and efficient energy use. In addition ant effect on MSMEs performance, and this shows
to production costs, green supplier management that Competitiveness is very important to create
also has an impact on product quality because re- MSMEs performance. The test results state that
sponsible green suppliers can help companies red- competitiveness has a significant impact on the
uce the number of defective products and increase MSME performance. The positive path coefficient
product reliability and consistency (Basana et al., means that high competitiveness can support im-
2022a; Basana et al., 2022b; Siagian et al., 2022). provement in MSMEs performance. Thus, the
higher the Competitiveness of MSMEs perform-
Supply Chain Resilience and Competitiveness ance, the more increasing. The findings of this re-
Supply Chain Resilience has a positive and search are able to prove the existence of Porter's
significant effect on Competitiveness, and this competitive advantage theory that competition is
shows that Supply Chain Resilience is very import- the core of a company's success and failure, as well
ant to create Competitiveness. Based on this infor- as determining the appropriateness of company
mation, it can be concluded that Supply Chain Re- activities that can support the company's opera-
silience has a significant effect on the Competitiv- tional performance. The findings of this research,
eness of companies among MSMEs in Pamekasan both in terms of description and measurement mo-
Regency. With a robust supply chain resilience del of indicators for competitiveness, are very pri-
system, companies will adapt more quickly to sup- ority in their application according to respondents'
ply chain disruptions to prepare resources to survi- assessments and have a dominant contribution in
ve immediately and return to normal conditions. It reflecting the company's competitiveness (Ricard-
also has a good impact on the company, where ianto et al., 2023; Siagian et al., 2022). In addition,
product delivery will always be on time and quan- it supports the opinion that high-quality perfor-
tity even if supply chain disruptions occur, so cus- mance is very important for the success of opera-
tomer loyalty to the product and the company can tions and can influence the company's competitive
increase. This research aligns with research stating advantage position.
that Supply Chain Resilience influences a compa- Apart from that, the findings of this research
ny's Competitiveness (Behl, 2022; Cagliyan et al., are consistent with the opinion of (Hamel, 2002),
2022; Abeysekara et al., 2019; Liu and Lee, 2018). stating that based on the competency approach,
Several studies show that a resilient company can competitiveness sources come from strategy, struc-
be seen from its growth indicators, for example, ture, competence, and innovation, as well as tangi-
the company's finances and robustness. These stu- ble and intangible resources. The findings of this
dies emphasize the importance of a strong supply research strengthen the opinions expressed Heizer
chain to measure a company's competitive advan- et al. (2020), Das and Canel (2023), and Menike
tage. Companies with high supply chain resilience (2019) that apart from various vital elements in op-
will be strong and grow significantly in crises, the- erations, quality is the key to a company's success
reby minimizing losses (Tarigan et al., 2018; Tari- in carrying out its operations. In addition, it sup-
gan et al., 2019; Zhou et al., 2022). Next, innova- ports the opinion that high-quality performance is
tion sustainability in business operations will help critical to successful operations and can influence
companies win the competition through produc- a company's competitive advantage position (Kra-
tivity and profits. Therefore, a company with good jewski and Ritzman, 2010; Peng and Schroeder,
supply chain resilience will have a competitive ad- 2011; Afraza et al., 2021; Kim, 2006). The results
vantage, so it can grow faster and win the compe- of interviews with respondents stated that the flex-
tition from its competitors. Research conducted by ibility of companies and business partners, especi-
(Abeysekara et al., 2019 Yu et al., 2021 and Zadeh ally suppliers, in meeting supply needs can incre-
ase the company's ability to serve diverse consu- Performance by paying attention to Supply Chain
mer demands and tastes, resulting in a reduction in Digitalization, Green Supply Chain, and Supply
costs, stockouts, and lead time. In addition, the Chain Resilience, which will have an impact on
company's operational performance can always be realizing competitiveness. Applying Supply Chain
achieved following the targets planned by the Digitalization, Green Supply Chain, and Supply
company's management. The conclusion that can Chain Resilience practices can increase competi-
be formulated is that competitiveness benefits the tiveness and place the company more profitably in
improvement of MSMEs performance. The results a tight competitive position. Sustainable Supply
of this study are consistent with the findings of se- Chain Digitalization, Green Supply Chain, and
veral previous researchers Giménez and Ventura Supply Chain Resilience practices will create com-
(2005), Kim (2006), Richey et al. (2009), Amar petitiveness and improve MSMEs Performance in
(2020), Zainurrafiqi et al. (2020a), Gazali and Zai- the long term. In creating competitiveness, the
nurrafiqi (2023), Zainurrafiqi et al. (2020b), Zai- company must have efficient resources and capa-
nurrafiqi (2018), and Zainurrafiqi and Hidayati bilities. The competitiveness of supply chain op-
(2021) that high competitiveness can directly im- erations is heightened and supports business. Dig-
prove the company's operational performance. italization is also helping to achieve a competitive
edge by enhancing the overall performance.
Mediation Role of Competitiveness
The results of the Sobel test calculation RECOMMENDATIONS
show an influence of Supply Chain Digitalization, This research only focuses on SME emplo-
Green Supply Chain and Supply Chain Resilience yees in Pamekasan with a sample size of 400 SME
on MSMEs Performance, which is mediated by employees, so the research results cannot be gen-
Competitiveness. These results can be concluded eralized to other companies in other cities/regen-
that Competitiveness (Z) can mediate the influence cies. Future research can expand the results by an-
of Supply Chain Digitalization (X1), Green Sup- alyzing other cities and including large compani-
ply Chain (X2) and Supply Chain Resilience (X3) es. This research aims to dig deeper into the role of
on MSMEs Performance (Y). This is in line with Supply Chain Digitalization, Green Supply Cha-
research by Liu and Weisheng (2021), Novitasari in, Supply Chain Resilience, Competitiveness and
and Tarigan (2022), and Hadi and Herianingrum Performance of MSMEs over a certain period and
(2020), which shows research results that Supply their influence on Employee Performance. Howe-
Chain Digitalization, Green Supply Chain and ver, the effects of some variables may change over
Supply Chain Resilience have a positive influence time, causing the results to change as well. There-
on MSMEs Performance with Competitiveness as fore, this research suggests that further research
a mediating variable. can develop research models to obtain more com-
prehensive results/information.
IMPLICATIONS
MSMEs need to allocate a budget for devel- CONCLUSIONS
oping applications and supply chain systems with- This research shows that Digitalization of
in the company. This is because the digitalization the Supply Chain has a positive and significant ef-
of the supply chain provides a solid foundation for fect on Competitiveness, Green Supply Chain has
the companies' competitive advantage. Companies a positive and significant impact on Competitive-
must increase the resilience of their supply chains ness, and Supply Chain Resilience has a positive
to survive the crisis and return to their original con- and significant effect on Competitiveness. Com-
dition quickly. Finally, companies need to main- petitiveness has a positive and significant effect on
tain and improve their competitive advantage be- MSMEs Performance. Supply Chain Digitaliza-
cause most competitors already know the impor- tion, Green Supply Chain and Supply Chain Resil-
tance of having a competitive advantage in run- ience have positive and significant effects on
ning a business. MSMEs Performance, with Competitiveness as a
MSMEs managers can improve MSMEs mediating variable.
WWW.JURNALJAM.UB.AC.ID 187
JURNAL APLIKASI MANAJEMEN VOLUME 22 ISSUE 1 MARCH 2024
Dian, N. M. 2022. Assessing the Impact of Green ary Journal of Sharia Economics, 6(1), pp.
Supply Chain Management, Competitive 136–153.
Advantage and Firm Performance in PRO- Giménez, Cristina and Ventura, Eva. 2005. Logis-
PER Companies in Indonesia. Operations tics-Production, Logistics-Marketing and
and Supply Chain Management, 15(3), pp. External Integration: Their Impact on Per-
395–406. formance. International Journal of Opera-
Dinh, T. N., Kuo, K. C., Lu, W. M., and Nguyen, tions and Production Management, 25. pp.
D. T. 2023. The Effect of Quantitative Eas- 20-38. DOI: 10.1108/01443570510572222.
ing on Asian Construction Firms’ Perform- Gorbach, G. 2017. The Great Digitization of In-
ance. International Journal of Construction dustry. Supply Chain Management Review,
Management, 23(1), pp. 38–47. DOI: https:/ pp. 24–29.
/doi.org/10.1080/15623599.2020.1846887. Hamel, G. 2002. Competing for the Future. Busi-
Dong, Z., Tan, Y., Wang, L., Zheng, J., and Hu, S. ness School Press.
2021. Green Supply Chain Management Harsono, H. and Kiswara, G. 2022. The Impact of
and Clean Technology Innovation: An Em- Digital Supply Chains on Organizational
pirical Analysis of Multinational Enterpris- Performance: An Empirical Study in the
es in China. Journal of Cleaner Production, Defense Industry. Journal of Industrial En-
310(127377), pp. 1–10. gineering and Management Research, 3(6),
Fahad, Saddique and Nwagwu, Urenna. 2023. Im- pp. 80–90.
plementation of Digitalization Supply Chain Hayes, K. J. P. 2004. SPSS and SAS Procedures
Helps in Gaining of Competitive Advanta- for Estimating Indirect Effects in Simple
ges as Mediating Role in the Supply Chain Mediation Models. Behavior Research Me-
Performance in Construction Organization thods, Instruments, and Computers, 36, pp.
in Pakistan under the Creative Common At- 717–731.
tribution Non-Commercial 4.0. Critical Dis- Heizer, B., Render, and C. M. 2020. Principles of
course Studies, 1(1), pp. 14–27. Operations Management: Sustainability and
Fornell, C. and Larcker, D. F. 1981. Evaluating Supply Chain Management (11th Edition).
Structural Equation Models with Unobserv- Pearson Education.
able Variables and Measurement Error. Jo- Kang, S. and Na, Y. N. 2020. Effects of Strategy
urnal of Marketing Research, 18(1), pp. 39. Characteristics for Sustainable Competitive
DOI: https://doi.org/10.2307/3151312. Advantage in Sharing Economy Businesses
Ganbold, O., Matsui, Y., and Rotaru, K. 2020. Ef- on Creating Shared Value and Performance.
fect of Information Technology-Enabled Sustainability, 12(1397), pp. 2–21.
Supply Chain Integration on Firm’s Opera- Kaplan, D. 2009. Structural Equation Modeling:
tional Performance. Journal of Enterprise Foundations and Extensions (2nd ed). SA-
Information Management, 34(3), pp. 948– GE Publications, Inc.
989. Kim. 2006. The Effect of Supply Chain Integra-
Gareche, M., Hosseini, S. M., and Taheri, M. 2017. tion on the Alignment between Corporate
A Comprehensive Literature Review in Competitive Capability and Supply Chain
Competitive Advantages of Businesses. In- Operational Capability. Int. J. Opera. Prod.
ternational Journal of Advanced Studies in Manag., 26(10), pp. 1084–1107.
Humanities and Social Science, 6(4), pp. Kline, R. 2016. Principles and Practice of Struc-
312–329. tural Equation Modeling (Fourth Edi). The
Gazali, Gazali and Zainurrafiqi. 2023. The Effect Guilforf Press.
of Green Entrepreneur Orientation on Net- Krajewski, L. J. and Ritzman, L. P. 2010. Operati-
work Resource Acquisition and Small and ons Management: Process and Supply Cha-
Medium Enterprises’ Business Performance ins (9th ed). Pearson.
with Knowledge Transfer and Integration Kustianti, A. R. and Murwaningsari, E. 2023. The
and Green Technology Dynamism as Mod- Influence of Green Organizational Culture,
erator Variables. Indonesian Interdisciplin- Green Supply Chain Management on Com-
WWW.JURNALJAM.UB.AC.ID 189
JURNAL APLIKASI MANAJEMEN VOLUME 22 ISSUE 1 MARCH 2024
pany Performance. Journal of Financial and N. E., and Sunawan, W. 2022. Supply Chain
Business Accounting, 16(1), pp. 20–29. Management: Engineering Methods. Media
Lee, V. H., Ooi, K. B., Chong, A. Y. L., and Lin, Nusa Creative (MNC Publishing).
B. 2015. A Structural Analysis of Greening Novitasari, M. and Tarigan, Z. J. H. 2022. The Ro-
the Supplier, Environmental Performance le of Green Innovation in the Effect of Cor-
and Competitive Advantage. Production porate Social Responsibility on Firm Perfor-
Planning and Control, 26(2), pp. 116–130. mance. Economies, 10(117).
Legner, C., Eymann, T., Hess, T., Matt, C., Böh- Oh, S. Y. U. and Ryu, H. Y. 2019. Interaction Eff-
mann, T., Drews, P., Mädche, A., Urbach, ects between Supply Chain Capabilities and
N., and Ahlemann, F. 2017. Digitalization: Information Technology on Firm Perfor-
Opportunity and Challenge for the Business mance. Information Technology and Mana-
and Information Systems Engineering Com- gement, 20(2), pp. 91–106.
munity. Business and Information Systems Pålsson, H. and Kovács, G. 2014. Reducing Trans-
Engineering, 59(4), pp. 301–308. portation Emissions: A Reaction to Stake-
Liu, C. L. and Lee, M. 2018. Integration, Supply holder Pressure or a Strategy to Increase
Chain Resilience, and Service Performance Competitive Advantage. International Jo-
in Third-Party Logistics Providers. The In- urnal of Physical Distribution and Logistics
ternational Journal of Logistics Manage- Management, 44(4), pp. 283–304.
ment, 29(1), pp. 5-21. Pellondou, D. C. and Santosa, W. 2022. The Influ-
Liu, K. P. and Weisheng, C. 2021. Supply Chain ence of Supply Chain Integration Capabili-
4.0: The Impact of Supply Chain Digitaliza- ties on Sustainability Performance with Gre-
tion and Integration on Firm Performance. en Supply Chain Management. Innovation,
Asian Journal of Business Ethics, 10, pp. 18(4), pp. 717-728.
371–389. Peng, R. G. and Schroeder, R. S. 2011. Competiti-
Magretta, J. 1998. The Power of Virtual Integrati- ve Priorities, Plant Improvement and Inno-
on: An interview with Dell Computer’s Mi- vation Capabilities, and Operational Perfor-
chael Dell. Harvard Business Review, 76(2), mance: A Test of Two Forms of Fit. J. Ope-
pp. 72–84. ra. Prod. Manag, 31(5), pp. 484–510.
Menike, L. 2019. Effect of Financial Literacy on Pettit, T. J. and Fiksel, J. C. K. 2010. Ensuring
Firm Performance of Small and Medium Supply Chain Resilience: Development of a
Enterprises in Sri Lanka. SSRN Electronic Conceptual Framework. J. Bus. Logist, 31,
Journal, pp. 1–25. pp. 1–21.
Nanyang, Zhao and Hong, Jiangtao. 2023. Impact Ploenhad, J. 2019. Mediating Role of Competitive
of Supply Chain Digitalization on Supply Advantage on the Relationship of Supply
Chain Resilience and Performance: A Mul- Chain Management and Organizational Per-
ti-Mediation Model. International Journal formance on the Food Industry of Thailand.
of Production Economics, 259, pp. 108817. International Journal of Supply Chain Ma-
Nawawi, I. 2014. Riyadhus Shalihin. In carihadis. nagement, 8(4), pp. 216–226.
com. Pustaka Al-Kautsar. Pu, Guoli. 2023. Effect of Supply Chain Resilience
Nguyen, X. and Le, T. 2020. The Impact of Global on Irm’s Sustainable Competitive Advan-
Green Supply Chain Management Practices tage: A Dynamic Capability Perspective.
on Performance: The Case of Vietnam. Un- Environmental Science and Pollution Re-
certain Supply Chain Management, 8(3), search, 30, pp. 4881–4898.
pp. 523-536. Ricardianto, P., Lembang, A., Tatiana, Y., Rumin-
Nkuda, M. O. 2016. Strategic Agility and Compet- da, M., Kholdun, A., Kusuma, I., and Endri,
itive Advantage: Exploration of the Ontolo- E. 2023. Enterprise Risk Management and
gical, Epistemological and Theoretical Un- Business Strategy on Firm Performance:
derpinnings. British Journal of Economics, The Role of Mediating Competitive Advan-
Management and Trade, 16(1), pp. 1–13. tage. Uncertain Supply Chain Management,
Novianti, T., Cahyadi, I., Utami, I. D., Anggraeni, 11(1), pp. 249–260.
Richey, H., Chen, R., Upreti, S. E., and Fawcett, Reviews, 9(1), pp. 53–80.
F. A. 2009. The Moderating Role of Barri- Tarigan, Z. J. H., Basana, S. R., and Suprapto, W.
ers on the Relationship between Drivers to 2018. Enterprise Resources Planning Proj-
Supply Chain Integration and Firm Perfor- ect Manager Competency on Improving Or-
mance. Int. J Phys. District. Logistics, 39 ganizational Performance through Process
(10), pp. 826–840. Design and Quality Performance. ICEBT
Rozudin, M. and Mahbubah, N. 2021. Implemen- 2018: Proceedings of the 2nd International
tation of the House of Risk Method in Green Conference on E-Education, E-Business
Supply Chain Risk Management for Bogie and E-Technology, pp. 153–157.
S2hd9c Products (Case Study: PT Barata Tarigan, Z. J. H., Siagian, H., Basana, S. R., and
Indonesia). JISI: Journal of Industrial Sys- Jie, F. 2019. Effect of Key User Empower-
tem Integration, 8(11), pp. 1–11. ment, Purchasing Strategy, Process Integra-
Safkaur, H. L. 2019. Impact of Business Strategy tion, Production System to Operational Per-
on the Management Accounting: The Case formance. E3S Web of Conferences, 130,
of the Production of State-Owned Enterpri- pp. 01042.
ses in Indonesia, South Sumatra. Journal of Varanavicius, V. and Navikaite, A. 2016. The Link
Asian Business Strategy, 9(1), pp. 29–39. between Competitive Advantage and Envi-
Sanders, N. and Swink, M. 2020. Digital Supply ronmental Sustainability. Journal of Econo-
Chain Transformation: Visualizing the Pos- mics and Finance, 7(6), pp. 2321–5925.
sibilities. Logistics Management (2002), 59 Walker, H., Di Sisto, L., and McBain, D. 2008.
(3), pp. 42–48. Drivers and Barriers to Environmental Sup-
Schumacker, R. E. and Lomax, R. 2004. A Begin- ply Chain Management Practices: Lessons
ner’s Guide to Structural Equation Model- from the Public and Private Sectors. Jour-
ing (Second edition). Lawrence Erlbaum nal of Purchasing and Supply Management,
Associates. 14(1), pp. 69-85.
Siagian, H., Tarigan, Z. J. H., and Basana, R. 2022. Wang, J. X. 2018. The Impact of Green Supply
The Role of Top Management Commitment Chain Management Practices on Competi-
in Enhancing Competitive Advantage: The tive Advantages and Firm Performance. En-
Mediating Role of Green Innovation, Sup- vironmental Sustainability in Asian Logis-
plier and Customer Integration. Uncertain tics and Supply Chains, pp. 121–134.
Supply Chain Management, 10(2), pp. 477– Wu, K. J., Tseng, M. L., Chiu, A. S. F., and Lim,
494. M. K. 2017. Achieving Competitive Advan-
Siagian, H., Tarigan, Z. J. H., and Jie, F. 2021. tage through Supply Chain Agility Under
Supply Chain Integration Enables Resili- Uncertainty: A Novel Multi-Criteria Deci-
ence, Flexibility, and Innovation to Improve sion-Making Structure. International Jour-
Business Performance in the COVID-19 nal of Production Economics, 190, pp. 96–
Era. Sustainability, 13(4669). 107.
Singh, A. P. S. K. J. K. D. P. A. K. 2017. Produc- Xi, M., Fang, W., and Feng, T. 2022. Green Intel-
tivity, Quality and Business Performance: lectual Capital and Green Supply Chain In-
An Empirical Study. International Journal tegration: The Mediating Role of Supply
of Productivity and Performance Manage- Chain Transformational Leadership. Jour-
ment, 66(1), pp. 78 – 91. nal of Intellectual Capital, Production Plan-
Sri, H. N. H. 2020. The Influence of Supply-Chain ning and Control, 26(12), pp. 100-130.
Resilience on Competitive Advantage and Xu, J., Yu, Y., Wu, Y., Zhang, J. Z., Liu, Y., Cao,
Firm Performance. International Journal of Y., and Eachempati, P. 2022. Green Supply
Supply Chain Management, 9(4), pp. 440– Chain Management for Operational Perfor-
446. mance: Anteceding Impact of Corporate So-
Srivastava, S. K. 2007. Green Supply-Chain Man- cial Responsibility and Moderating Effects
agement: A State-of-the-Art Literature Re- of Relational Capital. Journal of Enterprise
view. International Journal of Management Information Management, The Internation-
WWW.JURNALJAM.UB.AC.ID 191
JURNAL APLIKASI MANAJEMEN VOLUME 22 ISSUE 1 MARCH 2024
al Journal of Logistics Management, 29(1), and Democratic Variables Using the Vari-
pp. 22–34. ance Analysis Method. Economics Journal
Yildiz-Çankaya, S. and Sezen, B. 2019. Effects of of Economics, 11(1), pp. 1-65.
Green Supply Chain Management Practices Zainurrafiqi and Hidayati, Nurul. 2021. Pengaruh
on Sustainability Performance. Journal of Financial Literacy terhadap Financial Be-
Manufacturing Technology Management, havior dan Firm Performance dengan Relig-
30(1), pp. 98-121. iosity sebagai Variabel Moderasi (Survey
Yu, Y., Huo, B., and Zhang, Z. 2021. Impact of In- pada Usaha Mikro Kecil Menengah di Ma-
formation Technology on Supply Chain In- dura). Public Corner, 16(2), pp. 100–118.
tegration and Company Performance: Evid- Zainurrafiqi, Z., Gazali, Nuzulul, Q., and Nurul, H.
ence from Cross-Border E-Commerce Com- 2020b. The Effect of Organization Learning
panies in China. Journal of Enterprise Infor- Capability and Organizational Innovation
mation Management, 34(1), pp. 460-489. on Competitive Advantage and Business
Zadeh, A., Ramayah, T., Hanifah, H., Kurnia, S., Performance. Russian Journal of Agricultu-
and Mahmud, I. 2020. Supply Chain Infor- ral and Socio-Economic Sciences, 3, pp. 9-
mation Integration and Its Impact on the 17. DOI: 10.18551/rjoas.2020-03.02.
Operational Performance of Manufacturing Zhen, J., Xie, Z., and Dong, K. 2021. Impact of IT
Firms in Malaysia. Information and Mana- Governance Mechanisms on Organization-
gement, 57(8). al Agility and the Role of Top Management
Zainurrafiqi, Rachmawati, R., Putri, D. L. P., Res- Support and IT Ambidexterity. Internation-
diana, E., Widyastuti, E., Asy’ari, Q., and al Journal of Accounting Information Sys-
Rusdiyanto, W. H. 2020a. The Determinants tems, 40, pp. 1-15. DOI: https://doi.org/10.
and Consequents of Competitive Advanta- 1016/j.accinf.2021.100501.
ge Based on Local Wisdom at the Micro, Zhou, J., Hu, L., Yu, Y., Zhang, J. Z., and Zheng,
Small, and Medium Enterprise: Evidence L. 2022. Impacts of IT Capability and Sup-
from Indonesia. Solid State Technology, 63 ply Chain Collaboration on Supply Chain
(6), pp. 1604–1620. Resilience: Empirical Evidence from China
Zainurrafiqi, Zainurrafiqi. 2018. Revisiting the in the COVID-19 Pandemic. Journal of En-
Role of Antecedents of Micro, Small and terprise Information Management, 35(4),
Medium Enterprises (MSME) Performance pp. 120-138.