Research Paper
Year: 2020 | Month: April | Volume: 7 | Issue: 4 | Pages: 80-87
The Effect of Supply Chain Management on Competitive Advantage and Operation Organization Performance at PT PLN (Persero)
Tonggo Siahaan, Nazaruddin, Isfenti Sadalia
Master of Management Study Program, Postgraduate School of University of Sumatera Utara, Indonesia.
Corresponding Author: Tonggo Siahaan
ABSTRACT
The implementation of supply chain management (SCM) has high enough potential to increase the competitive advantage and organization performance since the competition not only among organization but also on supply chain. This research conceptualized and develop five SCM implementation (strategic supplier partnership, customer relationship, level of information sharing and postponement). Competitive advantage variable was measured based on 5 indicators such as price/cost, quality, delivery dependability, product innovation and time to market. Meanwhile, company’s performance was measured based on two indicators such as operational performance and financial performance. The data collection for this research was conducted by distributing questionnaire. Analysis object of this research is PT. PLN (Persero) North Sumatera Region. There were 109 respondents as the sample which consist of Manager division, basic supervisor and operational staff. This sampling was done by using stratified random sampling. The analysis method used was structural equation modelling (SEM) with SmartPLS application.The result of this research showed that there was significant effect of SCM to competitive advantage and supply chain management to Organizational Performance. As the same thing also happened for competitive advantage to Organizational Performance.
Keywords: Supply chain management; Competitive advantage; Organizational Performance; Structural Equation Modeling.
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