SUSTAINABLE OF SUPPLY CHAIN THROUGH SMART TECHNOLOGY IN INDONESIAN RETAIL MSMEs
Mochamad Heru Riza Chakim1), Mulyati2), Rasyid Tarmizi3), Bernadine Dwi Arrya Syahputra4), Ryantama Munajat5)

1) Univeritas Raharja, Tangerang*)

2) Univeritas Raharja, Tangerang

3 Univeritas Islam Negeri Syarif Hidayatullah, Tangerang

4) Univeritas Raharja, Tangerang

5) Univeritas Raharja, Tangerang

Abstract

Order fulfillment is an important process in managing the supply chain. The success of manufacturers competing throughout the supply chain depends in part on the business model that determines the level of inventory that must be held in order to fulfill an order. However, the order fulfillment process is not limited to order fulfillment. It^s about designing networks and processes that enable businesses to meet customer demands while minimizing overall transportation costs. This includes more than logistics and should be implemented across functionality, with the critical supplier and customer coordination.
The purpose of this white paper is to extend existing empirical literature on knowledge-based theory by focusing on the precursors of innovation and the impact of distribution management and smart technology on MSME^s competitive advantage in retail.
Based on knowledge-based theory, Innovation and sustainability research has become a priority area of interest, but in the context of the retail MSME sector, there is still little research that leads to it in terms of knowledge-based theory (KBV).
To achieve the above objectives, the proposed theoretical model was tested through an empirical study conducted on 355 samples of retail MSME owners or managers in Indonesia. Data analysis used structural equation modeling partial least square analysis technique with smart-pls software. The results obtained confirm the structure of the relationship between variables and the direct and indirect effects of innovation on sustainable competitive advantage in retail MSMEs. In addition, the expected results show that good distribution management and the use of smart technology can increase sustainable competitive advantage at the MSME level retail business.

Keywords: Innovation, Smart Technology, Distribution, SCA, MSME

Topic: Innovation, IT, Operations and Supply Chain Management