248 Int. J. Economic Policy in Emerging Economies, Vol. 10, No. 3, 2017 Copyright © 2017 Inderscience Enterprises Ltd. Competitiveness as mediating variable in measuring supply chain performance Akhmad Yunani Business Logistics Department, Politeknik Pos Indonesia, Jl. Sariasih No. 54 Bandung 40151, Indonesia Email: yunan06@icloud.com Abstract: Garment, a sub-sector contributing the largest export value of textile and apparel (T&A) industry, is characterised by volatile market, short product life cycle, high variation of product, vulnerable to change, and involves various entities in manufacturing and distributing its products. This research is conducted to examine the influence of collaboration and business process on competitiveness and its implication for supply chain performance of garment industry in West Java, Indonesia. The findings reveal that collaboration and business process affect the competitiveness and also the supply chain performance. Additionally, collaboration and business process affect the supply chain performance through competitiveness. The supply chain performance can be boosted through competitiveness enhancements; intermediary industry development, infrastructure improvement, trade system improvement of bonded area, financing, and full-service industry development. Further research needs to be performed by involving the government’s policies for strengthening T&A competitiveness as a moderating variable to determine the effectiveness of these policies. Keywords: business process; collaboration; competitiveness; garment industry; supply chain performance. Reference to this paper should be made as follows: Yunani, A. (2017) ‘Competitiveness as mediating variable in measuring supply chain performance’, Int. J. Economic Policy in Emerging Economies, Vol. 10, No. 3, pp.248–263. Biographical notes: Akhmad Yunani is currently a Lecturer and Researcher in Politeknik Pos Indonesia, Bandung, Indonesia. He holds a Doctor of Science in Management from Universitas Padjadjaran, Indonesia. He teaches operations management, logistics and supply chain management, and ERP using SAP. His research interests are in the areas of logistics and supply chain management, business process, and public policy in logistics and transportation. He currently also serves as the Chief of Center of Technology of Politeknik Pos Indonesia, and a Secretary to the Board of Commissioners of PT Kereta Api Logistik, a subsidiary of PT Kereta Api Indonesia (a state-owned company that operates railway-based transportation in Indonesia). This paper is a revised and expanded version of a paper entitled ‘The influence of collaboration and business process on competitiveness and its implications for supply chain performance of garment industry’ presented at SIBR-UniKL 2015 Conference on Interdisciplinary Business and Economic Research, Federal Hotel, Kuala Lumpur, Malaysia, 16–17 February 2015.