The adoption of supply chain management (SCM) is pivotal in boosting organizational competitiveness and performance. This study examines the relationships among SCM, firm value, company performance, and competitive advantage within the context of micro, small, and medium enterprises (MSMEs) in Surabaya, East Java, Indonesia. Employing a quantitative approach, we analyzed data collected from a sample of 100 MSMEs using SmartPLS to test various hypotheses. The findings indicate that effective SCM significantly influences a firm’s value, performance, and competitive advantage. This study supports the mediating role of firm value by showcasing its robust influence on the relationship between SCM and competitive advantage. However, the mediating role of company performance on competitive advantage appears weaker. The discussion integrates relevant literature, highlighting the pivotal role of SCM strategies in enhancing productivity, fulfilling customer desires, and increasing competitiveness. This study also underscores the critical link between financial performance, value creation, and competitive advantage. Overall, this study contributes to the ongoing development of practical SCM knowledge by providing valuable insights for MSMEs seeking to navigate the challenges of an evolving business landscape.