One of the phenomenon of Cacao industry in Indonesia is the problem along its supply chain
from upstream to downstream which affect the competitive advantage and ultimately the
performance. The latest theory of operation management and hot topic to be disc
ussed is
concept of supply chain management and strategy. There is a limited research on supply chain
and strategy with this combination of variable and specific case in cacao industry of make this
study will give a high contribution and value advantage f
or cacao industry. This paper aims to
introduce the study of new model of competitive advantage and performance which is driven by
supply chain management practices and supply chain strategy. Main purpose of the study was to build and to validate an instr
ument to measure the effect of supply chain management
practices, strategy and competitive advantage and impact to business performance perception
among Indonesian cacao companies. The methods used in this study are descriptive and
explanatory methods. The
Unit of analysis in this research is Indonesian Cacao manufacturing
industry, while observation units were Chairman and Senior Managers. Analysis tools used are
structural equation modeling base on variant with new SmartPLS and SPSS. Finding of this
resea
rch are a new model of competitive advantage which research results are (1) supply chain
management practices (SCM) factors influencing on competitive advantage but not influencing
the performance directly (2) supply chain strategy factors influencing the
performance both
direct and indirect (3) competitive advantage influencing on the performance.