Sustainable Organizational Culture and Competitive Advantage in MSMEs: The Mediating Role of Sustainable Supply Chain

Authors

  • Fety Nurlia Muzayanah Universitas Singaperbangsa Karawang, Indonesia
  • Rediawan Miharja Universitas Singaperbangsa Karawang, Indonesia
  • Agustifa Zea Tazliqoh Universitas Singaperbangsa Karawang, Indonesia
  • Venni Avionita Universitas Singaperbangsa Karawang, Indonesia
  • Cindy Lia Intan Saharany Universitas Singaperbangsa Karawang, Indonesia
  • Desvia Sa’diah Universitas Singaperbangsa Karawang, Indonesia
  • Rima Khaerin Nisa Universitas Singaperbangsa Karawang, Indonesia

DOI:

https://doi.org/10.62794/je3s.v7i5.504

Keywords:

Sustainable Competitive Advantage, Sustainable Organizational Culture, Sustainable Supply Chain, Sustainability Value Chain Model

Abstract

Intensifying business competition and increasing stakeholder expectations for sustainable practices are driving firms to shift from temporary to sustainable competitive advantages. Despite this trend, few empirical studies have simultaneously investigated the roles of sustainable organizational culture and sustainable supply chains in achieving sustainable competitive advantage within a single integrated structural model. This study examines the relationship between Sustainable Organizational Culture (SOC) and Sustainable Supply Chain (SSC) and Sustainable Competitive Advantage (SCA), as well as the relationship between SSC and SCA. A quantitative research approach was adopted, utilizing a survey method. Data were collected via questionnaires from 158 MSME respondents in Karawang and Bekasi, Indonesia, and analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM). The results of the study indicate that SOC has a positive and significant effect on both SSC and SCA, while SSC also has a positive and significant effect on SCA, with an R² value of 61.6% for SSC and 62.2% for SCA. The findings confirm that SSC partially mediates the relationship between SOC and SCA. Overall, the study demonstrates that sustainable organizational culture provides a strategic foundation that promotes the development of sustainable supply chains and directly enhances organizational competitive advantage, offering valuable guidance for managers and policymakers in developing long-term sustainability strategies.

References

Alemu, B. A. (2025). Cultivating a Culture of Sustainability : The Role of Organizational Values and Leadership in Driving Sustainable Practices. 9(1), 79–94.

Arsawan, I. W. E. (2020). Leveraging knowledge sharing and innovation culture into SMEs sustainable competitive advantage. https://doi.org/10.1108/IJPPM-04-2020-0192

Assoratgoon, W., & Kantabutra, S. (2023). Toward a sustainability organizational culture model. Journal of Cleaner Production, 400(September 2022), 136666. https://doi.org/10.1016/j.jclepro.2023.136666

Bappenas. (2024). Proyeksi Jumlah Usaha Mikro Kecil Menengah (UMKM) Berdasarkan Kabupaten/Kota di Jawa Barat. https://opendata.jabarprov.go.id/id/dataset/proyeksi-jumlah-usaha-mikro-kecil-menengah-umkm-berdasarkan-kabupatenkota-di-jawa-barat

Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108

Birasnav, M., Chaudhary, R., Henry, J., Bienstock, J., & Seaman, C. (2022). Computers & Industrial Engineering Green supply chain management : A theoretical framework and research directions. Computers & Industrial Engineering, 172(PA), 108441. https://doi.org/10.1016/j.cie.2022.108441

BPS. (2025). Banyaknya Industri Mikro dan Kecil menurut Kabupaten/Kota (Unit). BPS Provinsi Jawa Barat. https://jabar.bps.go.id/id/statistics-table/2/NzUyIzI=/banyaknya-usaha-mikro-dan-kecil-menurut-kabupaten-kota.html

Cahyono, Y., Purwoko, D., Koho, I. R., Setiani, A., Israwan, P., Sosiady, M., & Wijoyo, H. (2023). Uncertain Supply Chain Management. 11. https://doi.org/10.5267/j.uscm.2022.10.012

Cantele, S., & Zardini, A. (2018). Is sustainability a competitive advantage for small businesses ? An empirical analysis of possible mediators in the sustainability e fi nancial performance relationship. Journal of Cleaner Production, 182, 166–176. https://doi.org/10.1016/j.jclepro.2018.02.016

Carter, C. R. (2008). A framework of sustainable supply chain management: Moving toward new theory. In International Journal of Physical Distribution and Logistics Management (Vol. 38, Issue 5, pp. 360–387). https://doi.org/10.1108/09600030810882816

Das, D. (2018). The impact of Sustainable Supply Chain Management practices on firm performance: Lessons from Indian organizations. Journal of Cleaner Production, 203, 179–196. https://doi.org/10.1016/j.jclepro.2018.08.250

Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2020). A PRIMER ON PARTIAL LEAST SQUARES STRUCTURAL EQUATION MODELING (PLS-SEM). In SAGE Publications Ltd.

Haseeb, M., Hussain, H. I., & Kot, S. (2019). Role of Social and Technological Challenges in Achieving a Sustainable Competitive Advantage and Sustainable Business Performance. Sustainability, 11(14), 1–23. https://doi.org/10.3390/su11143811

Junejo, I., Saraih, U. N., Sohu, J. M., Jagirani, T. S., Nasir, A., Ejaz, F., & Hossain, M. B. (2025). Exploring the role of green organizational culture in enhancing sustainable logistics performance among manufacturing SMEs in a developing economy. Discover Sustainability, 6, 1132. https://doi.org/https://doi.org/10.1007/s43621-025-01997-x

Ketprapakorn, N., & Kantabutra, S. (2022). Toward an organizational theory of sustainability culture. In Sustainable Production and Consumption (Vol. 32, pp. 638–654). https://doi.org/10.1016/j.spc.2022.05.020

KUMKM. (2025). Publikasi Data Makro UMKM Tahun 2020–2024.

Lee, H. L., & Tang, C. S. (2017). Socially and Environmentally Responsible Value Chain Innovations : New Operations Management Research Opportunities. Management Science, 64(3), 1–14. https://doi.org/http://dx.doi.org/10.1287/mnsc.2016.2682

Lim, M. K., Tseng, M., Hua, K., & Dat, T. (2017). Knowledge management in sustainable supply chain management : Improving performance through an interpretive structural modelling approach. Journal of Cleaner Production, 162, 806–816. https://doi.org/10.1016/j.jclepro.2017.06.056

Maisaroh. (2021). Dampak Penerapan Rantai Pasokan Berkelanjutan Terhadap Keunggulan Kompetitif Pada UMKM Konveksi di Desa Nogotirto. Matrik: Jurnal Manajemen Dan Teknik Industri-Produksi, XXII(1), 85–94. https://doi.org/10.30587/matrik.v22i1.2382

Mukhsin, M., & Suryanto, T. (2022). The Effect of Sustainable Supply Chain Management on Company Performance Mediated by Competitive Advantage. Sustainability, 14(818), 1–18. https://doi.org/https://doi.org/10.3390/su14020818

Muzayanah, F. N., Miharja, R., Mubarokah, I., Almanfarisi, M. G., & Hendriyanti, D. (2024). Analysis of processed food sustainable supply chain management in Karawang Regency. 1, 1–6. https://doi.org/10.31603/biseb.72

Naunthong, P., Nimsai, S., Punnakitikashem, P., & Kantabutra, S. (2026). Embedding Sustainability Values in Logistics and Supply Chains : Linking Organizational Culture , Practices , and Performance. Sustainability, 18(11), 5496. https://doi.org/https://doi.org/10.3390/su18115496

Negri, M. (2021). Integrating sustainability and resilience in the supply chain: A systematic literature review and a research agenda. Business Strategy and the Environment, 30(7), 2858–2886. https://doi.org/10.1002/bse.2776

Obeng, H. A., Arhinful, R., Mensah, L., Sarwar, A., & Ashimkhanova, S. (2026). Driving corporate sustainability in Ghanaian SMEs : the role of knowledge-oriented leadership and knowledge processes. July, 1–22. https://doi.org/10.3389/frsus.2026.1894703

Osei, M. B., Papadopoulos, T., Acquaye, A., & Stamati, T. (2023). Improving sustainable supply chain performance through organisational culture: A competing values framework approach. Journal of Purchasing and Supply Management, 29(2), 1–21. https://doi.org/10.1016/j.pursup.2023.100821

Primadasa, R., Kusrini, E., Mansur, A., & Masudin, I. (2025). Enhancing SME supply chain sustainability through organizational ambidexterity and supply chain agility using the MOORA-ISM-MICMAC framework. Sustainable Futures, 10(September), 101373. https://doi.org/10.1016/j.sftr.2025.101373

Purwoko, Judijanto, L., Abidin, Z., & Antesty, S. (2023). Sustainability Practices in MSMEs: A Quantitative Analysis of the Impact of Green Supply Chain Management, Consumer Awareness, and Regulatory Compliance on Market Performance. West Science Interdisciplinary Studies, 01(10), 1039–1048. https://doi.org/10.58812/wsis.v1i10.298

Qu, X., Khan, A., Yahya, S., Zafar, A. U., & Shahzad, M. (2021). Green core competencies to prompt green absorptive capacity and bolster green innovation : the moderating role of organization ’ s green culture. Journal of Environmental Planning and Management, 0(0), 1–46. https://doi.org/10.1080/09640568.2021.1891029

Sarkis, J. (2021). Supply chain sustainability: learning from the COVID-19 pandemic. International Journal of Operations and Production Management, 41(1), 63–73. https://doi.org/10.1108/IJOPM-08-2020-0568

Shahzad, M. A. (2023). Impact of green HRM practices on sustainable performance: mediating role of green innovation, green culture, and green employees’ behavior. Environmental Science and Pollution Research, 30(38), 88524–88547. https://doi.org/10.1007/s11356-023-28498-6

Shahzad, M., Qu, Y., Zafar, A. U., & Appolloni, A. (2021). Does the interaction between the knowledge management process and sustainable development practices boost corporate green innovation ? June, 1–17. https://doi.org/10.1002/bse.2865

Siregar, D. H. (2022). Analysis of The Relationship between Practices and Performance of Green Supply Chain Management in Indonesian Micro , Small , and Medium Enterprises ( MSMEs ). The South East Asian Journal of Managemen, 16(2), 119–135. https://doi.org/10.21002/seam.v16i2.1169

Sun, J., Sarfraz, M., Khawaja, K. F., & Abdullah, M. I. (2022). Sustainable Supply Chain Strategy and Sustainable Competitive Advantage : A Mediated and Moderated Model. Front. Public Health, 10(May), 1–10. https://doi.org/10.3389/fpubh.2022.895482

Truong, H. T., Dang, H. T., & Nguyen, C. Van. (2025). The influence of organizational culture , strategic vision development and competitive advantage on organizational performance in small and medium enterprises. Cogent Business & Management, 12(1). https://doi.org/10.1080/23311975.2024.2437146

Zainurrafiqi, Gazali, Risal, Z., Hakim, R., Rusdiyanto, & Asyik, N. F. (2024). Organizational Resilience , Strategic Foresight , and Green Supply Chain Integration : A Pathway to Sustainable Performance in MSMEs Through Green Competitive Advantage. Journal of Management World, 4, 856–866. https://doi.org/10.53935/jomw.v2024i4.552

Downloads

Published

2026-10-30

How to Cite

Muzayanah, F. N., Miharja, R., Tazliqoh, A. Z., Avionita, V., Saharany, C. L. I., Sa’diah, D., & Nisa, R. K. (2026). Sustainable Organizational Culture and Competitive Advantage in MSMEs: The Mediating Role of Sustainable Supply Chain. Journal of Economic Education and Entrepreneurship Studies, 7(5), 343–357. https://doi.org/10.62794/je3s.v7i5.504

Issue

Section

Articles