Effect of Innovation Strategies on Sme Performance Mediated Competitive Advantages

2019 ◽  
Vol 118 (2) ◽  
pp. 94-97
Author(s):  
Mohammad Mabrur Taufik ◽  
DewiPuspaningtyas Faeni
Keyword(s):  
Competitive Advantage ◽  
Human Resource Development ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Simple Random Sampling ◽  
Innovation Strategy ◽  
Product Introduction ◽  
Research Population ◽  
Innovation Strategies ◽  
Medium Enterprises

Small and Medium Enterprises and Indonesian Cooperatives (SMESCO) are strategies in promoting and introducing Indonesia's superior products to the international community. Through SMESCO, SME owners can work together on standardization of SME products, SME quality standardization and at the same time a forum for fostering SMEs to market their products, through human resource development programs including seminars, training, workshops and product introduction through online shops and mentoring programs. The research aims to prove and analyse the influence of: innovation strategies on the performance of SMEs in SMESCO Indonesia directly or through competitive advantage; innovation strategy towards competitive advantage; competitive advantage towards the performance of SMEs at SMESCO Indonesia. The research population is all SME companies that partner with SMESCO Indonesia. Sampling is done by probability sampling with a simple random sampling method. Data analysis using Structural Equation Modelling-Partial Least Squares, a sample of 147 small and medium business owners at SMESCO Indonesia. The results of the study prove: (1) The innovation strategy does not directly have a significant effect on the increasing performance of SME companies in SMESCO Indonesia but has a significant effect through competitive advantage; (2) Competitive advantage has a significanteffect on the increasing performance of SMEs in Indonesia.

scholarly journals Innovations as the Competitive Advantage for Small and Medium Enterprises: the Case for the Kingdom of Saudi Arabia

2020 ◽  
pp. 196-205
Author(s):  
Ahlam Otaibi Alghanmi
Keyword(s):  
Saudi Arabia ◽  
Competitive Advantage ◽  
Organizational Innovation ◽  
Small And Medium Enterprises ◽  
Vital Role ◽  
Innovation Strategy ◽  
Kingdom Of Saudi Arabia ◽  
Innovation Strategies ◽  
Medium Enterprises ◽  
The Impact

There is a lack of studies on innovations and competitiveness in Small & Medium Enterprises (SMEs) in Saudi Arabia; to fell this gap, this paper will study change as the competitive advantage for Small and Medium Enterprises: the case for the Kingdom of Saudi Arabia. The study aims to explore different practices of SMEs in the Kingdom of Saudi Arabia to examine the impact of innovation strategies (Organizational, Product, Process, and Market) on the competitive advantage of SMEs. The study was conducted on one hundred and forty-seven (147) SMEs that are practicing different activities in the Kingdom of Saudi Arabia. The study's analysis indicates that most of the enterprises were young (operation years were less than ten years), which shows the strong need to apply innovative strategies to maintain their position and competitiveness in the market. Competitive advantage enables the firm to utilize its resources efficiently and maintain high levels of quality performance. The results show that the correlation between Innovation strategies such as product innovation strategy, market innovation strategy, process innovation strategy, and organizational innovation strategy practiced by SMEs in the Kingdom of Saudi Arabia and competitiveness was Positive. Therefore, it indicates that different innovation strategies were significantly influencing the competitiveness of the SMEs. To remain a competitor enterprise in the market is not a natural or an easy attempt, and it can be challenging for SMEs, especially without the needed knowledge and support. Findings and recommendations of the study can be used as a guideline for SMEs. Also, emphasizing on the importance of education that plays a vital role in SMEs innovations. It is essential to establish with different research centers and universities in the Kingdom of Saudi Arabia programs or activities that focus on changes in business, and it will result in gaining competitive advantage and sustainability for Small and Medium Enterprises in the market. Keywords: competitive advantage, innovation, small enterprises, medium enterprises.

scholarly journals Orientasi Kewirausahaan dalam Kinerja UMKM di Jember

2021 ◽  
Vol 9 (1) ◽  
pp. 54
Author(s):  
Enny Hindarwati ◽  
Agus Rahayu ◽  
Lili Adi Wibowo
Keyword(s):  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Study Population ◽  
Medium Enterprises

The entrepreneurial orientation that affects the performance of Micro, Small and Medium Enterprises (MSMEs) in Jember is a research objective. The study population was 172 micro, small and medium enterprises in Jember. This research uses 100 respondents with simple random sampling technique. The research respondents were the owners of the MSME as informants. Collecting data by distributing questionnaires to 100 respondents. The collected data were analyzed using Structural Equation Modeling (SEM) Partial Least Square (PLS) software. The results showed that the autonomous dimension had a significant effect on the performance of MSMEs, while the other dimensions of entrepreneurial orientation: innovation, proactivity and risk had no significant effect.

scholarly journals Efforts to Increase Marketing Performance of Small and Medium Enterprises in Central Java, Indonesia

2020 ◽  
Vol 4 (1) ◽  
pp. 11-19
Author(s):  
Mudiantono Soekirman ◽  
Fajar Ayu Suryani
Keyword(s):  
Competitive Advantage ◽  
Entrepreneurial Orientation ◽  
Small Businesses ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Distribution Channel ◽  
Equation Model ◽  
Marketing Performance ◽  
Central Java ◽  
Medium Enterprises

Business competition in the current era of globalization requires companies to have a strategy to win the market. Strategic management has an important role for the survival of the company. The existence of such competition is also felt by small businesses such as Small and Medium Enterprises (SMEs). The increase in the number of SME units in Central Java was not followed by an increase in average sales of SMEs. This study aims to analyze the effect of distribution channel, ERP implementation and entrepreneurial orientation on marketing performance with competitive advantage as an intervening variable. The population in this study were small and medium enterprises owners in Central Java. Six hypothesis were formulated for this study. To test those hypothesis, this study used 104 respondent. Structural Equation Model (SEM) was applied to this study using AMOS 24  as a tool. The results of this study shows that competitive advantage is the most variable in influencing the marketing performance, while this  competititve advantage has entrepreneurial orientation as highest variable in influencing it. This study suggests that if SMEs want to increase their marketing performance, they must increase  their competitive advantage. This competitive advantage can be increase by increasing the entrepreneurial orientation.

scholarly journals Pengaruh Orientasi Kewirausahaan, Kinerja Pemasaran, dan Kapabilitas TIK Terhadap Keunggulan Bersaing Pada Pelaku UMKM di Sentra Industri Sepatu Cibaduyut Kota Bandung

2021 ◽  
Vol 4 (2) ◽  
pp. 120-127
Author(s):  
Mochammad Rifky Pamungkas ◽  
Muhamad Rizal ◽  
Ria Arifianti ◽  
Asmaul Husna
Keyword(s):  
Competitive Advantage ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Marketing Performance ◽  
Industry Center ◽  
Medium Enterprises

Covid-19 penetrates into Indonesia to have an impact on Business, Micro, Small and Medium Enterprises (MSMEs). One of the MSMEs affected by the Covid-19 pandemic is the Cibaduyut Shoe Industry Center. This has an impact on business, marketing, information and the competitiveness of MSME players in Cibaduyut. So the research objective is to find and determine the effect of entrepreneurial orientation, marketing performance, and ICT capabilities on competitive advantage. The research method used is quantitative with the research sample being SMEs in Cibaduyut and analysis using Structural Equation Modeling-Partial Least Square. While the results of the study provide results for the greatest influence on the ICT capability variable of 44.9%. The conclusion in this study is that the entrepreneurial orientation variable and marketing performance do not have a significant effect on competitive advantage, while the ICT capability variable has a significant effect.

IMPROVING THE COMPETITIVENESS OF THE SMALL AND MEDIUM ENTERPRISES (SME) OF TROSO WEAVING CRAFT IN JEPARA REGENCY USING CAPITAL INTELLECTUAL ANALYSIS

2018 ◽  
Vol 2 (1) ◽  
pp. 35-46
Author(s):  
Ngatindriatun Ngatindriatun
Keyword(s):  
Human Capital ◽  
Competitive Advantage ◽  
Intellectual Capital ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Simple Random Sampling ◽  
Intellectual Ability ◽  
Sustainable Competitive Advantage ◽  
Structural Capital ◽  
Customer Capital

The aim of the research was to analyze the management of the SMEs of Troso Weaving Craft in Jepara Regency in relation to the human resources. In order that the SMEs can compete with today’s industry, the SMEs are required to be able to run their businesses professionally and to innovate, as well as to implement new breakthroughs. Therefore, the management of the SMEs needs to develop their intellectual ability and competitive advantage for their products. Intellectual capital is the intangible resource that can be used as the source of sustainable competitive advantage. The measurement of IC associated with competitive advantage was made against the elements of human capital, structural capital and costumer capital. Hence,this research discussed a model that relates the intellectual capital of the SMEs to the competitive advantage of the SMEs of Troso Weaving Craft in Jepara Regency. For the development of the model and hypothesis, the research used the Structural Equation Modelling (SEM), by taking the samples of 157 SMEs of Troso Weaving Craft selected in simple random sampling. The analysis results show that human capital, structural capital, and customer capital have the effect on competitive advantage. It means that the improvement of the competitive advantage for Troso Weaving Craft requires trainings in the managements of production, distribution, marketing and finance for all individuals and employees of the SMEs.

scholarly journals Effect of Organisational Culture on Sustainable Growth of SMEs: Mediating Role of Innovation Competitive Advantage

2021 ◽  
pp. 1-19
Author(s):  
Danjuma Tali Nimfa
Keyword(s):  
Competitive Advantage ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Business Environment ◽  
Organisational Culture ◽  
Sustainable Growth ◽  
Mediating Role ◽  
Medium Enterprises ◽  
The Relationship

The purpose of this study is to investigates the effect of organisational culture on the sustainable growth of SMEs; mediating role of innovation competitive advantage. The electrical products small and medium enterprises was the realm of this study. The partial least squares structural equation modelling (PLS-SEM) via SmartPLS was employed to test the hypotheses. Finding of this study revealed that organisational culture has a direct positive significant effect on sustainable growth of SMEs and innovation competitive advantage. Moreover, the study confirmed that innovation competitive advantage has a direct positive significant relationship with sustainable growth of SMEs. Furthermore, the findings established that innovation competitive advantage has fully mediates the relationship between organisational culture and sustainable growth of electrical manufacturing SMEs in Nigeria. This study sets out purposeful measures to encourage owner-mangers of the electrical manufacturing SMEs to maintain as well as installing innovative organisational culture that enhance efficient sustainable growth of SMEs and embedding innovation competitive advantage as a viable strategic mechanism in the enterprise. This study is distinctive because it tries to fill the small and medium enterprises gaps through encouraging managers of the electrical manufacturing SMEs to always strategize for better sustainable growth in the rapidly changing business environment. Keywords: Organisational culture, Sustainable growth of SMEs, Innovation competitive advantage, PLS-SEM (SmartPLS).

scholarly journals Market Orientation, Competitive Advantage and Marketing Performance of Small Medium Enterprises (SMEs)

2020 ◽  
Vol 23 (1) ◽  
pp. 19
Author(s):  
Astrid Puspaningrum
Keyword(s):  
Competitive Advantage ◽  
Market Orientation ◽  
Structural Equation ◽  
Customer Orientation ◽  
Small And Medium Enterprises ◽  
Equation Modeling ◽  
Marketing Performance ◽  
Competitive Prices ◽  
Competitor Orientation ◽  
Medium Enterprises

This study aims to analyze competitive advantage as a variable that mediates the effect of market orientation on marketing performance. This research population is 113,000 SMEs (Small And Medium Enterprises) located in Malang City, which are engaged in food processing, handicrafts, and clothing business units with an observation sample of 100 SMEs. The data analysis technique used in this study is Structural Equation Modeling. The results of this study indicate that SMEs' performance will increase if they can carry out processes and activities related to creating and satisfying customer needs. Besides, market-oriented SMEs contribute to competitive advantage by creating product uniqueness, product quality, and competitive prices, ultimately affecting the performance of SMEs. In order to improve SMEs' performance, efforts must be made to develop marketing strategies, such as paying attention to market orientation, focusing on customer orientation, competitor orientation, and inter-functional coordination, and developing or innovating new products.

scholarly journals INTEGRATING DISRUPTIVE INNOVATION, COMPETITIVE ADVANTAGE, AND BUSINESS NETWORKING CAPABILITY ON SMALL BUSINESS PERFORMANCE IN INDONESIA

Performance ◽  
2019 ◽  
Vol 26 (1) ◽  
pp. 39
Author(s):  
Sri Murni Setyawati ◽  
Monica Rosiana ◽  
Wiwiek Rabiatul Adawiyah
Keyword(s):  
Competitive Advantage ◽  
Structural Equation ◽  
Business Performance ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Disruptive Innovation ◽  
Business Networking ◽  
Small Business Performance ◽  
Medium Enterprises ◽  
The Relationship

This study aimed at explaining the influence of disruptive innovation on business performance with competitive advantage as a mediator and networking capability as moderate. The tool of analysis used was Structural Equation Modelling (SEM). The sample size of this research was 120 owners and/or managers of Small and Medium Enterprises (SMEs) in Purwokerto areas. The result showed that disruptive innovation has a positive effect on both business performance and competitive advantage. The study supported the view that competitive advantage has a positive impact on business performance.  Also, competitive advantage act as mediating variable on the relationship between disruptive innovation and business performance. Finally, the last hypothesis stated that networking as moderation variable of disruptive innovation to business performance was supported.

scholarly journals Implementation of Corporate Social Responsibility Strategy to Enhance Firm Reputation and Competitive Advantage

2021 ◽  
Vol 13 (4) ◽  
pp. 96-114
Author(s):  
Ngoc Khuong Mai ◽  
An Khoa Truong Nguyen ◽  
Thanh Thuy Nguyen
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Competitive Advantage ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Firm Reputation ◽  
Active Involvement ◽  
Csr Strategies ◽  
Medium Enterprises ◽  
Corporate Social

Corporate social responsibility (CSR) is an important strategy for firms to gain a positive reputation. This study aims to identify the mediating role of firm reputation on the relationships of CSR dimensions (economic, legal, ethical, philanthropic and environmental) and competitive advantage, and how a firm directly gains competitive advantage through CSR implementation. Data were collected by surveying 869 managers, as representatives of small and medium enterprises, and large enterprises, in the trade and service, real estate and manufacturing sectors in Vietnam. Then, SmartPLS 3.0 software and the partial least squares structural equation modelling method were used to process the data and test the hypotheses. The empirical results are impactful and enhance the existing literature on strategic management. The results show that implementing environmental, ethical, philanthropic and legal CSR activities contribute positively to increase the firm reputation and thus generating competitive advantage. The findings indicate that the implementation of economic CSR activities does not enable firms to gain a reputation. In contrast, active involvement in environmental CSR activities results in building firm reputation, thereby creating a source of competitive advantage for firms. The study provides guidelines for top-level management to adjust their CSR strategies more effectively to improve reputation and competitive advantage.

scholarly journals PENGARUH ENTREPRENEURIAL LEADERSHIP DAN INNOVATION CAPACITY TERHADAP COMPETITIVE ADVANTAGE PADA USAHA KECIL DAN MENENGAH (UKM) BINAAN DINAS PERDAGANGAN KOTA SURABAYA

2018 ◽  
Vol 21 (1) ◽  
pp. 30
Author(s):  
Arini Sulistyowati
Keyword(s):  
Competitive Advantage ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Equation Model ◽  
Partial Least Square ◽  
Least Square ◽  
Entrepreneurial Leadership ◽  
Analysis Technique ◽  
Innovation Capacity ◽  
Medium Enterprises

The contribution of Small and Medium Enterprises (SMEs) to economic growth makes the performance of SMEs need to be improved, but in creating the optimal performance it needs a competitive advantage that must be owned by every SME. The competitive advantage can be influenced by several factors. This research was conducted with the aim to analyze the influence of entrepreneurial leadership and innovation capacity toward competitive advantage on SMEs of the Trade Service Department of Surabaya City. This study uses a quantitative approach. Data collection was done by distributing questionnaires. Data analysis technique used is analysis of The Structural Equation Model (SEM) with Partial Least Square (PLS) program. The results of this study found that entrepreneurial leadership and innovation capacity have a significant effect on competitive advantage on SMEs of the Department of Commerce Surabaya City. Keywords: Entrepreneurial Leadership, Innovation Capacity, Competitive Advantage

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