Implementation of Supply Chain Management on MSME Business Performance in Madura for Sustainable Futures

Abstract

Abstract: This study examined the role of supply chain management (SCM) in improving the performance of micro, small, and medium enterprises (MSMEs) in Madura, a region with unique economic challenges. This study used a quantitative approach with a survey of 58 MSMEs in the Madura coastal region. This study used four main variables in SCM: trust, relationships with customers, information sharing, and internal integration. The study results showed that the trust and internal integration variables positively and significantly affect MSME business performance. Trust between suppliers and MSMEs will increase operational efficiency and flexibility in managing the raw materials. Meanwhile, the variables of customer relations and information sharing, on the other hand, did not significantly affect MSME business performance. This study filled the gap in references related to SCM in MSMEs located in areas with limited facilities and infrastructure, such as Madura, which is rarely discussed. The practical implications of the findings of this study illustrated that MSMEs in Madura, especially around the coast, need to prioritize trust with suppliers and internal integration in their operational activities. Apart from that, it is hoped that MSMEs can invest in supporting technology and participate in training to increase their competitiveness. These findings provided new benefits for adapting SCM strategies to areas with limited resources.