International Journal of Production Research Vol. 49, No. 22, 15 November 2011, 6629–6649 Entrepreneurial SCM competence and performance of manufacturing SMEs Chin-Chun Hsu a , Keah Choon Tan a , Tritos Laosirihongthong b * and G. Keong Leong a a College of Business, University of Nevada Las Vegas, Las Vegas, NV 89154-6009, USA; b Department of Industrial Engineering, Faculty of Engineering, Thammasat University, Klong Luang, Pathumtanee 12121, Thailand (Received 5 April 2010; final version received 26 October 2010) This study reviewed the literature and interviewed managers to discover the dimensions of a new construct called the entrepreneurial supply chain management competence of small and medium-sized enterprises. We measured entrepreneurial SCM competence in terms of five first-order constructs: innovation orientation, proactiveness orientation, risk-taking characteristics, relational capital, and coordination capability. We further proposed that this competence affects SMEs’ performance directly and indirectly via the firm’s SCM strategies. A set of survey data collected from automotive OEM suppliers in five ASEAN countries was used to test the research model. Results show that the five constructs are important dimensions of entrepreneurial SCM competence, and that they affect performance indirectly. Our findings provide valuable insights about the enablers of an SME’s SCM practices and their effects on firm performance. Keywords: entrepreneurship; supply chain management; competence; performance 1. Introduction In this immensely competitive global environment, many firms resort to supply chain management (SCM) as a core strategic competence to gain competitive edge. The philosophy behind SCM stresses the seamless integration of value-creating activities across organisational boundaries to bring products and services to market. Although SCM exists in many different forms, depending on the levels of integration, individual performance, and industries, its key objective invariably is to create an inter-organisational, boundary- spanning strategy that enables both buyers and suppliers to integrate their activities to eliminate waste. Despite the positive influences of SCM on firm performance though, research has shown that organisations that participate in the supply chain in the same market segment can experience dramatically different performance levels (Hsu et al. 2009). Unfortunately, there is a lack of research to explore the linkage between SCM competence and performance, especially among small and medium-sized enterprises (SMEs). Hence, the fundamental question pertains to the intangible resources that firms can employ to engage *Corresponding author. Email: ltritos@engr.tu.ac.th ISSN 0020–7543 print/ISSN 1366–588X online ß 2011 Taylor & Francis http://dx.doi.org/10.1080/00207543.2010.537384 http://www.tandfonline.com