Project-oriented supply chain and innovation strategies for competitive advantage: An empirical study of SMEs in West Java

This study examines the impact of supply chain management (SCM) practices and innovation strategies on competitive advantage through operational performance in West Java. Using a quantitative approach, the study surveyed 150 SME managers/owners via Google Forms, analyzing the data with Structural Equation Modeling (SEM) and AMOS 20 software. The results reveal that SCM practices positively influence operational performance and competitive advantage, while innovation strategies also enhance operational performance and competitive advantage. Furthermore, the study finds that although SCM practices and innovation strategies improve competitive advantage, operational performance does not mediate the relationship between these factors and competitive advantage. The implications of these findings suggest that SMEs should focus on enhancing SCM practices and fostering innovation strategies to improve competitive advantage directly. Although operational performance is important, it does not play a central mediating role in boosting competitive advantage. Therefore, businesses should prioritize optimizing SCM and innovation independently for more effective outcomes, without relying on operational performance as an intermediary. This insight can guide policy development and strategic planning for SMEs in West Java, fostering more efficient operations and stronger market positioning.