| Summary: | makes the SME sector as a se Large number of SMEs in Indonesia ctor that has
an important role in the Indonesian economy. There are a lot of problem found in
SMEs because the ack of management system in SMEs, while the SMEs are very
complex. SCM is one of that solution, however, there are pros and cons among
researchers about its application. The research was conducted to identifying the
application of SCM in SMEs and its influence on the performance of SMEs.
The questionnaire was distributed in 39 SMEs in Yogyakarta. Respondents
were asked to answer 4 questions section which aims to determine the
respondents' general knowledge about SCM, type of market and strategy of the
respondents, frequency of SCM implementation, and performance of the business
respondents.
Results of this study showed that only 5 respondents who have knowledge of
SCM. Types of markets owned 76.92% of respondents are responsive and have a
strong correlation with its strategy. Chi square results showed only availability of
products for consumers, employees training on quality, cost-efficiency
transportation, consumer involvement in product design that rely on the analysis
of strategic relationships with frequency application of SCM. In the analysis of
the application of SCM relationships with non-financial and financial
performance of SMEs, the implementation of some items had significant and
marginally significant correlation. Some items have a negative correlation with
non-financial and financial performance of SMEs. However, SCM is potential
implemented in SMEs, because some respondent implement SCM, yet they don't
have any knowledge in SCM.
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