The effect of competency management on organizational performance through supply chain integration and quality

Abstract

Synergy is built by manufacturing companies with suppliers and customers in the supply chain to improve organization performance. The research provides simultaneous testing of competency management, supply chain integration, supply chain quality, operational capability as a strategy to improve company performance. Collecting data for medium and large manufacturing companies in Indonesia are performed by sending a questionnaire link via email and WhatsApp. 625 respondents received the questionnaires and 152 respondents filled them with a response rate of 24.32%. Data analysis were performed using partial least squares to test the hypotheses and found that competency management had a direct impact on supply chain integration (0.598), supply chain quality (0.387) and operational capability (0.346). Supply chain integration affects increasing supply chain quality (0.428), operational capability (0.619) and organizational performance (0.255). Supply chain quality impacts increasing operational capability (0.260) and does not significantly affect organizational performance (0.018). The operational capability of a manufacturing company has an impact on improving organizational performance (0.584). Practical contribution is that managers who manage the supply chain must continue to enhance skills and knowledge and supply chain components in quality for increased performance.