THE MODERATING EFFECT OF BUSINESS ENVIRONMENT ON THE SUPPLY CHAIN MANAGEMENT PRACTICES AND COMPETITIVE ADVANTAGE OF THE CHINESE CONSTRUCTION INDUSTRY IN KUNMING, THE PEOPLE'S REPUBLIC OF CHINA

Abstract

The purpose of this study was 1) to study the importance level of supply chain management practices, business environment, and competitive advantage of construction enterprises, 2) to study the effect of supply chain management practices, and business environment toward the competitive advantage of the Chinese construction industry, and 3) To test the moderating effect of the business environment on the supply chain management practices and competitive advantage of the Chinese contraction industry in Kunming, the People's Republic of China. It is quantitative research. The sample consisted of 300 business owners registered with the Kunming City Commercial Office, China in 2023. The research tool is an online questionnaire. Collect data through websites, WeChat, and applications. Data were analyzed by descriptive statistics, including mean and standard deviation. Inferential statistics were analyzed with SEM.

The results showed that all factors were high important. It should be arranged from the most important to the least important. including competitive advantage (4.51), business environment (4.49), and supply chain management practices (4.40). The result of the effect of supply chain management practices had a direct effect on competitive advantage, with a path coefficient equal to 0.829, followed by the business environment, is the moderating effect of supply chain management practices to competitive advantage, with a path coefficient equal to 0.007. The results of a study moderating the effect of the business environment on supply chain management practices and competitive advantage were found to be statistically significant at the 0.01 level. This means that the Chinese construction industry must consider the business environment, especially since external conditions can be unpredictable and can impact their competitive advantage in Kunming.

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