The role of supply chain dynamics: Assessing the impact of logistics and distribution efficiency on the scaling up of MSMEs from Indonesian perspective

This research endeavors to dissect the intricate dynamics surrounding the growth of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, specifically examining the influence of logistics and distribution efficiency, with a nuanced emphasis on the mediating role played by supply chain dynamics. Employing a quantitative methodology, the study administered questionnaires to MSME owners or managers, employing linear regression and mediation analysis techniques for data interpretation. The findings of this study illuminate a positive influence of both logistics and distribution efficiency on supply chain dynamics, subsequently fostering the expansion of MSMEs. A noteworthy revelation is the discerning mediating effect of supply chain dynamics, acting as a pivotal link between the efficiency of logistics and distribution processes and the substantial growth of MSMEs. This underscores the paramount importance of supply chain dynamics as a fundamental catalyst for the sustainable development of MSMEs. The novelty of this research lies in its innovative mediation approach, shedding light on the internal mechanisms that intricately connect logistics and distribution efficiency to MSME expansion. By delving into these relationships, the study offers a fresh perspective on how MSMEs can strategically bolster their growth trajectories. The practical implications are substantial, suggesting that a concentrated effort on optimizing supply chain management could serve as a strategic linchpin for supporting the expansion and sustainability of MSMEs in Indonesia. This study contributes valuable insights to the ongoing discourse on MSME development, advocating for a holistic strategy that encompasses logistics, distribution efficiency, and supply chain dynamics to fortify the foundations of sustainable growth.