This study aims to determine the effect of supply chain management on competitive advantage and organizational performance, as well as to analyze the effect of mediation of competitive advantage on the influence of supply chain management on organizational performance. This research was conducted in batik industry in Yogyakarta City with a population of 56 SMI. Methods of data collection using questionnaires distributed to the owner or manager of batik industry in Yogyakarta City which has been registered on Directory Database of Industry and Trade Office of Yogyakarta province and city. Analytical tool in this research is Structural Equating Modeling (SEM) by using SmartPLS3. The results of this study indicate that supply chain management has a significant positive effect on competitive advantage and company performance with each coefficient value of 0.156 and 0, 423 and t value equal to 2,998 and 2,790. Competitive advantage has a significant positive effect on organizational performance with coefficient value of 0.865 lanes and t value equal to 18.524. In this study competitive advantage is able to mediate the influence of supply chain management on quasi-mediating organizational performance.