SUPPLY CHAIN AND DISTINCTIVE CAPABILITY IN THE IMPROVEMENT OF PERFORMANCE OF MICRO HYDRO POWER PLANT IN WEST JAVA

Abstract

Performance of Micro Hydro Power Plant in West Java is not high enough, reviewed
from production capacity and sales. It was allegedly related to problems connected with supply
chain and distinctive capability. So this research aims to test the influence of supply chain and
distinctive capability in improving the performance of Micro Hydro Power Plant in West Java.
The method used in this research is explanatory survey. Coverage of observation time in this
research is cross section / one shot, that is in year 2018. Unit of analysis in this research is
Micro Hydro Power Plant industry in West Java where the management of that company
become the observation unit. The target population is all companies incorporated in the Micro
Hydro Power Plant group of industries totaling 23. Due to the small population size, the
sampling method is conducted by census. The analytical approach used is Partial Least Square
(PLS). The results show that supply chain and distinctive capability have an effect on
increasing the performance of Micro Hydro Power Plant in West Java both simultaneously and
partially, where supply chain has greater influence level than distinctive capability. The results
of this study have implications to the management of Micro Hydro Power Plant in West Java
in an effort to improve the performance of the company by prioritizing on the development of
supply chain supported by the development of distinctive capabilities.