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Dynamic capabilities in the supply chain play an essential role in improving an organization's operational performance. This research aims to see the influence of supply chain dynamic capabilities, including collaboration, integration, agility, and responsive capabilities, on the operational performance of food and beverage MSMEs in Sleman, Indonesia. The sample of this study is food and beverage MSMEs located in Sleman, Indonesia, which apply supply chain management capabilities such as collaboration, integration, agility, and responsive capabilities. The MSMEs must have been operated for more than three years, starting from 2019, so MSMEs already have a more robust supply chain network. Data from sixty food and beverage MSMEs was collected in 2024 using a set of questionnaires tested for validity using Pearson’s correlation and reliability using Cronbach’s Alpha. Data processing in this research uses SPSS 25 software with an analysis tool, namely multiple regression analysis. This analysis helps prove whether or not there is an influence between two or more independent variables on the dependent variable. The results of this research show that collaboration capabilities, integration capabilities, agility capabilities, and responsive capabilities partially have a significant positive effect on operational performance. Increasing collaboration capabilities between MSMEs and internal and external parties must be maintained to improve value from the MSMEs themselves. According to the hypothesis test results, the integration capability variable significantly influences the operational performance of MSMEs in Sleman, Indonesia. The agility capability variable significantly influences the operational performance of MSMEs in Sleman, Indonesia. The responsiveness significantly influences the operational performance of MSMEs in Sleman, Indonesia.

The first objective of this study is to analyze the effect of external supply chain flexibility (inbound supplier flexibility and outbound logistics flexibility) on product innovation performance. The second objective is to analyze the effect of external supply chain flexibility on product innovation performance with the lead supplier influence and normative integration as moderating variables. There are six hypotheses in this study: 1) the inbound supplier flexibility affects the product innovation performance, 2) the outbound logistics flexibility affects the product innovation performance, 3) the lead supplier influence moderates the relationship between the inbound supplier flexibility and the product innovation performance, 4) the lead supplier influence moderates the relationship between the outbound logistics flexibility and the product innovation performance, 5) the normative integration moderates the relationship between the inbound supplier flexibility and the product innovation performance, and 6) the normative integration moderates the relationship between the outbound logistics flexibility and product innovation performance. The sample of this study is one hundred fashion SMEs in Sleman Regency, Special Region of Yogyakarta, Indonesia. This study uses census as the sampling method. This study uses primary data obtained by distributing questionnaires to the respondents. The researchers analyzed the data with PLS. The results show that inbound supplier flexibility and outbound logistics flexibility positively affect product innovation performance. The lead supplier influence negatively moderates the effect of inbound supplier flexibility on product innovation performance in fashion. The lead supplier influence does not moderate the effect of outbound logistics flexibility on product innovation performance. Normative integration does not moderate the relationship among the variables of the study.