This study examines the effects of Supplier Relationship Management (SRM) and Customer Relationship Management (CRM) on the performance of food and beverage micro, small, and medium enterprises (MSMEs) in Bandung City, Indonesia, with Competitive Advantage as a mediating variable. A quantitative explanatory survey design was employed, with data collected through structured questionnaires from 100 owners and managers of food and beverage MSMEs using purposive sampling and analyzed via Structural Equation Modeling–Partial Least Squares (SEM-PLS). The findings show that SRM and CRM have positive and significant effects on Competitive Advantage, but neither directly affects MSME Performance; their effects are fully mediated by Competitive Advantage, which itself has the strongest direct effect on performance (β = 0.691). SRM contributes more strongly to Competitive Advantage than CRM (β = 0.563 vs. β = 0.351). These findings extend relationship management literature by clarifying Competitive Advantage's role as the primary mechanism linking SRM and CRM to MSME performance, and suggest that owners should direct relationship-management efforts explicitly toward building differentiation, cost efficiency, and service quality rather than treating them as performance drivers in themselves.
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