The Role of Culture of Manager and Supply Cha in Management in Competitive Advantage with Innovation Capability as a Mediating Variable

Abstract

Introduction: In the era of free trade, businesses must adopt strategies that enhance their value from the consumer’s perspective to remain competitive. Competitive advantage is achieved when a company offers greater value than its costs, which can be influenced by organizational culture, supply chain management, and innovation. This study examines these factors in UMKM FOKUST, a small business group in Boyolali Regency, Indonesia that has received government support for growth and development.

Objectives: The purpose of this research is to examine how Culture of Managers and Supply Chain Management affect Competitive Advantage with Innovation Capability as a Mediating Variable.

Methods: This study included 30 UMKM FOKUST managers from Temon Village, Simo District, Boyolali Regency. This study's sample must meet these criteria: 1) administer UMKM FOKUST, Temon Village, Simo District, Boyolali Regency. 2) are in business for at least 3 years. This study employs regression and Sobel test using SPSS.

Results: The data analysis shows that Supply Chain Management affects Innovation Capability, Manager Culture affects Sustainable Competitive Advantage, and Innovation Capability does not mediate this effect.

Conclusions: Studying MSMEs' Supply Chain Management and Innovation Capability, unlike many studies that use major companies' objects. MSMEs' operations are affected by management culture. Efficiency is now part of the competitive advantage indicator.