.png)
.png)
ANALYSIS OF THE COMPETITIVE ADVANTANGE MODEL OF MSMEs IN INDONESIA: URGENCY ENTREPRENEURIAL ORIENTATION, MARKET ORIENTATION, AND CUSTOMER CAPITAL AS PREDICTORS
Abstract
MSMEs are the backbone of the Indonesian economy, contributing a large part of the country's gross domestic product (GDP) and creating jobs for millions of people. In the face of increasingly fierce global competition, it is essential to understand the factors that influence the competitive advantage of MSMEs. The main objective of the research is to analyze the influence of entrepreneurial orientation, market orientation, and customer capital on competitive advantage. The sample in this research consisted of 160 respondents from MSME actors in the culinary sector in Indonesia who were determined using a convenience sampling approach. Data collection uses a questionnaire instrument, which is then distributed online. Data analysis uses the SPSS application by displaying data processing results through testing research instruments with validity and reliability tests, multiple regression analysis, coefficient of determination and hypothesis testing. Based on the results of data analysis, entrepreneurial orientation, market orientation, and customer capital have a positive and significant effect on competitive advantage. Overall, this research contributes significantly to the theoretical understanding of MSME competitive advantage and provides practical guidance for the development, management and coaching of MSMEs in Indonesia. By strengthening entrepreneurial orientation, market orientation, and customer capital as predictors of competitive advantage, MSMEs can improve their market position and contribute more to economic growth and community development.
Full Text:
PDFReferences
Abdulkarim, K.-J., Ahamd, S. B., & Tariq, T. Y. A. (2021). Entrepreneurial Orientation, Market Orientation, Managerial Accounting and Manufacturing SMEs Satisfaction. Journal of Accounting Science, 6(1), 1–14. https://doi.org/10.21070/jas.v6i1.1590
Absah, Y., Chairunisa Muchtar, Y., & Qamariah, I. (2018). The Effect of Intellectual Capital on Business Performance in Micro-, Small-, and Medium Enterprise (MSME) in Medan City. KnE Social Sciences, 3(10), 177–186. https://doi.org/10.18502/kss.v3i10.3371
Alberto, C., Sampaio, F., Herna, M., & Jose, R. (2019). The Relationship Between Market Orientation, Customer Loyalty And Business Performance: A Sample From The Western Europe Hotel Industry. Tourism and Hospitality Research, 12(5), 1–12. https://doi.org/10.1177/1467358419829179
Alshebami, A. S. (2023). Green Innovation, Self-Efficacy, Entrepreneurial Orientation and Economic Performance: Interactions among Saudi Small Enterprises. Sustainability (Switzerland), 15(3). https://doi.org/10.3390/su15031961
Ameli Kalkhoran, S. M., Rabiei, K., Seyed Alizadeh, S. M., Heravi, H. M., & Rouzpeykar, Y. (2022). Analyzing Impact of Intellectual Capital on Business Performance Using Structural Models Based on Customer Knowledge Management. Discrete Dynamics in Nature and Society, 1(1), 1–10. https://doi.org/10.1155/2022/7453565
Anabila, P., Kastner, A. N. A., Bulley, C. A., & Allan, M. M. (2019). Market Orientation: A Key To Survival And Competitive Advantage In Ghana’s Private Universities. Journal of Marketing for Higher Education, 30(1), 1–21. https://doi.org/10.1080/08841241.2019.1693474
Baker, W. E., & Sinkula, J. M. (2009). The Complementary Effects Of Market Orientation And Entrepreneurial Orientation On Profitability In Small Businesses. Journal of Small Business Management, 47(4), 443–464. https://doi.org/10.1111/j.1540-627X.2009.00278.x
Barbosa Ferreira, J. A., Coelho, A., & Weersma, L. A. (2019). The Mediating Effect of Strategic Orientation, Innovation Capabilities and Managerial Capabilities Among Exploration and Exploitation, Competitive Advantage and Firm’s Performance. Contaduria y Administracion, 64(1), 1–25. https://doi.org/10.22201/fca.24488410e.2019.1918
Bavarsad, B., Jafari, S., Hosseini, S. A., & Hozhabri, A. A. (2015). Analyzing The Impact Of Entrepreneurial Marketing On Sustainable Competitive Advantage In SMEs. International Conference on E-Commerce in Developing Countries: With Focus on e-Business, ECDC 2015. https://doi.org/10.1109/ECDC.2015.7156327
Bontis, N., William Chua Chong, K., & Richardson, S. (2000). Intellectual Capital and Business Performance in Malaysian Industries. Journal of Intellectual Capital, 1(1), 85–100. https://doi.org/10.1108/14691930010324188
Buli, B. M. (2017). Entrepreneurial Orientation, Market Orientation And Performance Of Smes In The Manufacturing Industry: Evidence From Ethiopian Enterprises Bereket. Management Research Review, 40(3).
Chandra, E., Julyanthry, Rahmayanti, P. L. D., Syarifa Diah Kusuma, R. C., & Sudirman, A. (2022). Analyzing Business Performance from Human Capital and Social Capital with Competitive Advantage as Mediating Variable. International Journal of Economics, Business and Management Research, 06(11), 137–151. https://doi.org/10.51505/ijebmr.2022.61110
Chawinga, W. D., & Chipeta, G. T. (2017). A Synergy Of Knowledge Management And Competitive Intelligence: A Key For Competitive Advantage In Small And Medium Business Enterprises. Business Information Review, 34(1), 25–36. https://doi.org/10.1177/0266382116689171
Cheng, F. F., Wu, C. S., & Chen, Y. C. (2020). Creating Customer Loyalty in Online Brand Communities. Computers in Human Behavior, 107(181), 105752. https://doi.org/10.1016/j.chb.2018.10.018
Correia, R. J., Dias, J. G., & Teixeira, M. S. (2020). Dynamic Capabilities And Competitive Advantages As Mediator Variables Between Market Orientation And Business Performance. Journal of Strategy and Management, 1–20. https://doi.org/10.1108/JSMA-12-2019-0223
Darwis, H., & Utama, L. (2020). Pengaruh Orientasi Pasar dan Orientasi Kewirausahaan Terhadap Kinerja Usaha. Jurnal Manajerial Dan Kewirausahaan, 2(2), 22–34. https://doi.org/10.35891/jsb.v6i1.1580
De Guimarães, J. C. F., Severo, E. A., & de Vasconcelos, C. R. M. (2018). The Influence of Entrepreneurial, Market, Knowledge Management Orientations on Cleaner Production and The Sustainable Competitive Advantage. Journal of Cleaner Production, 174, 1653–1663. https://doi.org/10.1016/j.jclepro.2017.11.074
Egbu, C. O., Hari, S., & Renukappa, S. H. (2005). Knowledge Management For Sustainable Competitiveness In Small And Medium Surveying Practices. Structural Survey, 23(1), 7–21. https://doi.org/10.1108/02630800510586871
Gupta, V. K., & Gupta, A. (2015). Relationship Between Entrepreneurial Orientation and Firm Performance in Large Organizations Over Time. Journal of International Entrepreneurship, 13(1), 7–27. https://doi.org/10.1007/s10843-014-0138-0
Habib, M. A., Bao, Y., & Ilmudeen, A. (2020). The Impact of Green Entrepreneurial Orientation, Market Orientation and Green Supply Chain Management Practices on Sustainable Firm Performance. Cogent Business and Management, 7(1). https://doi.org/10.1080/23311975.2020.1743616
Hair, J. F. (2014). Multivariat Data Analysis 7th Edition. Pearson Prentice Hall.
Halim, F., Grace, E., Lie, D., & Sudirman, A. (2021). Analysis of Innovation Strategies to Increase the Competitive Advantages of Ulos Products in Pematangsiantar City. Jurnal Manajemen Dan Bisnis, 10(2), 80–90. https://doi.org/https://orcid.org/0000-0003-3952-1463
Hasan, M., Roslan, A. H., Hendrayani, E., Sudirman, A., Jamil, M., Sitaniapessy, R. H., Basoeky, U., Fauziah, Yasa, N. N. K., & Wardhana, A. (2021). Kewirausahaan. Media Sains Indonesia.
Hashim, M. J., Osman, I., & Alhabshi, S. M. (2015). Effect of Intellectual Capital on Organizational Performance. Procedia - Social and Behavioral Sciences, 211(September), 207–214. https://doi.org/10.1016/j.sbspro.2015.11.085
Hasmirati, H., & Akuba, A. (2022). Dampak Human Capital, Structural Capital, Dan Costumer Capital Terhadap Kinerja Bisnis UMKM Di Tilamuta. JAMIN: Jurnal Aplikasi Manajemen Dan Inovasi Bisnis, 4(2), 201. https://doi.org/10.47201/jamin.v4i2.95
Huhtala, J. P., Sihvonen, A., Frösén, J., Jaakkola, M., & Tikkanen, H. (2014). Market Orientation, Innovation Capability and Business Performance: Insights From The Global Financial Crisis. Baltic Journal of Management, 9(2), 134–152. https://doi.org/10.1108/BJM-03-2013-0044
Irwansyah, R., Syahputra, D., Ningsih, S., Hasan, M., Kristanto, T., Nugroho, L., Marwan, D., Febrianty, Sudirman, A., & Sudarmanto, E. (2021). Marketing Digital Usaha Mikro. Widina Bhakti Persada.
Julyanthry, J., Putri, D. E., Lie, D., & Sudirman, A. (2021). MSME Competitive Advantages Reviewed From Entrepreneurship Insight And Market Orientation Aspects With Innovation As A Medium. Jurnal Manajemen Dan Bisnis, 10(2), 30–40.
Julyanthry, Putri, D. E., & Sudirman, A. (2021). Kewirausahaan Masa Kini. Media Sains Indonesia.
Juwita, S. P., & Anggraini, F. (2007). Pengaruh Human Capital Terhadap Business Performance Melalui Customer Capital. Human Capital, 4(2), 1–206. https://doi.org/10.1017/UPO9788175968400
Kamboj, S., & Rahman, Z. (2017). Market Orientation, Marketing Capabilities and Sustainable Innovation: The Mediating Role of Sustainable Consumption and Competitive Advantage. Management Research Review, 40(6), 698–724. https://doi.org/10.1108/MRR-09-2014-0225
Keh, H. T., Nguyen, T. T. M., & Ng, H. P. (2007). The Effects of Entrepreneurial Orientation and Marketing Information on the Performance of SMEs. Journal of Business Venturing, 22(4), 592–611. https://doi.org/10.1016/j.jbusvent.2006.05.003
Khalique, M., Abdul Nassir Shaari, J., Md. Isa, A. H., & Ageel, A. (2011). Role of Intellectual Capital on The Organizational Performance of Electrical And Electronic SMEs in Pakistan. International Journal of Business and Management, 6(9), 253–257. https://doi.org/10.5539/ijbm.v6n9p253
Khalique, M., Bontis, N., Bin Shaari, J. A. N., Yaacob, M. R., & Ngah, R. (2018). Intellectual Capital and Organisational Performance in Malaysian Knowledge-Intensive SMEs. International Journal of Learning and Intellectual Capital, 15(1), 20–36. https://doi.org/10.1504/IJLIC.2018.088345
Khalique, M., Hina, K., Ramayah, T., & Shaari, J. A. N. bin. (2020). Intellectual Capital in Tourism SMEs in Azad Jammu and Kashmir, Pakistan. Journal of Intellectual Capital, 21(3), 333–355. https://doi.org/10.1108/JIC-11-2018-0206
Kuncoro, A., Astuti, W., & Firdiansjah, A. (2021). The Effect of Mixed Marketing Moderation And Innovation on The Influence of Market Orientation And Entrepreneurship Orientation Toward Marketing Performance. Management Science Letters, 11, 895–902. https://doi.org/10.5267/j.msl.2020.10.009
Lin, L. W., Gan, S. M., & Wei, S. Y. (2022). Intelligent Capital, Organizational Learning, and Corporate Performance Influence Relationship. Mathematical Problems in Engineering, 1(1), 1–11. https://doi.org/10.1155/2022/4666772
Lin, Y. H., Kulangara, N., Foster, K., & Shang, J. (2020). Improving Green Market Orientation, Green Supply Chain Relationship Quality, and Green Absorptive Capacity To Enhance Green Competitive Advantage in The Green Supply Chain. Sustainability (Switzerland), 12(18), 1–22. https://doi.org/10.3390/su12187251
Liu, C. H., Chang, A. Y. P., & Fang, Y. P. (2020). Network Activities As Critical Sources of Creating Capability and Competitive Advantage: The Mediating Role of Innovation Capability and Human Capital. Management Decision, 58(3), 544–568. https://doi.org/10.1108/MD-08-2017-0733
Manev, I. M., Gyoshev, B. S., & Manolova, T. S. (2005). The Role of Human and Social Capital and Entrepreneurial Orientation For Small Business Performance In A Transitional Economy. International Journal of Entrepreneurship and Innovation Management, 5(3–4), 298–318. https://doi.org/10.1504/ijeim.2005.006531
Masa’deh, R., Al-Henzab, J., Tarhini, A., & Obeidat, B. Y. (2018). The Associations Among Market Orientation, Technology Orientation, Entrepreneurial Orientation And Organizational Performance. Benchmarking An International Journal, 25(8), 3117–3142. https://doi.org/10.1108/BIJ-02-2017-0024
Maulana, M. R., Danial, R. D. M., & Komariah, K. (2022). Analysis of the Influence of Market Orien-Tation and Knowledge Management on Competitive Advantage. Inovbiz: Jurnal Inovasi Bisnis, 10(2), 31–39. https://doi.org/https://doi.org/10.35314/inovbiz.v10i1.2374
Muhajirin, M., Kamaluddin, K., & Ernawati, S. (2020). The Effect Of Market Orientation And Product Innovation On Competitive Advantages Of Gedogan Weaving MSME. Proceedings of the 1st Annual Conference on Education and Social Sciences, 465(Access 2019), 388–390. https://doi.org/10.2991/assehr.k.200827.099
Muniarty, P., Bairizki, A., Sudirman, A., Wulandari, Anista, J. S. A., Satriawan, D. G., Putro, Suryati, E., Suyatno, A., Setyorini, R., Putra, S., Nugroho, L., Nurfadilah, D., & Samidi, S. (2021). Kewirausahaan. Widina Bhakti Persada.
Pantouvakis, A., Vlachos, I., & Zervopoulos, P. D. (2017). Market Orientation For Sustainable Performance And The Inverted-U Moderation Of Firm Size: Evidence From The Greek Shipping Industry. Journal of Cleaner Production, 165, 705–720. https://doi.org/10.1016/j.jclepro.2017.07.135
Poltak, H., Iljasmadi, Sudirman, A., Nuryani, N. N. J., Savitri, C., Augustinah, F., Hendrayani, E., Triadinda, D., Pasaribu, P. N., Hasan, M., Helendra, Gunawan, Farissy, M. Al, Rinda, R. T., Johan, H., Ummami, W., Fauji, R., Herawati, A. R., & Bora, A. (2022). Kewirausahaan (E-Bisnis Dan E-Commerce). Media Sains Indonesia.
Pratiwi, N. W. A., & Riana, I. G. (2021). Entrepreneurial Orientation, Market Orientation on Silversmiths Innovation. Journal of Multidisciplinary Academic, 5(2), 124–128.
Pratono, A. H., Darmasetiawan, N. K., Yudiarso, A., & Jeong, B. G. (2019). Achieving Sustainable Competitive Advantage Through Green Entrepreneurial Orientation And Market Orientation: The Role Of Inter-Organizational Learning. The Bottom Line, 32(1), 2–15. https://doi.org/10.1108/BL-10-2018-0045
Purba, E., Ariesa, Y., Saragih, L., Damanik, D., & Sudirman, A. (2022). Reviewing Sustainable Competitive Advantage: The Role of Entrepreneurial Orientation, Knowledge Management and Marketing Innovation In The Development of MSME. AdBispreneur : Jurnal Pemikiran Dan Penelitian Administrasi Bisnis Dan Kewirausahaan, 7(1), 17–27. https://doi.org/https://doi.org/10.24198/adbispreneur.v7i1
Purnamasari, S., & Andreas Wijaya. (2020). Pengaruh Orientasi Pasar, Orientasi Kewirausahaan dan Kemampuan Pemasaran terhadap Kinerja Bisnis UMKM Clothing Line. Jurnal Business Management Journal, 16(1), 53–64.
Puspaningrum, A. (2017). The Effect of Market Orientation And Innovation on Competitive Advantages. Research Journal of Business and Management, 4(4), 549–558. https://doi.org/10.17261/pressacademia.2017.761
Puspaningrum, A. (2020). Market Orientation, Competitive Advantage and Marketing Performance of Small Medium Enterprises (SMEs). Journal of Economics, Business, & Accountancy Ventura, 23(1), 19. https://doi.org/10.14414/jebav.v23i1.1847
Retnawati, B. B., & Retnaningsih, C. (2019). Role of Entrepreneurial Orientation and Market Orientation on Competitive Advantage Through Marketing Performance: The Study at Marine-Based Food Processing Industry in Central Java. 3rd Asia Pacific International Conference of Management and Business Science, 135, 66–71. https://doi.org/10.2991/aebmr.k.200410.011
Robb, C. A., & Stephens, A. R. (2021). The Effects of Market Orientation and Proactive Orientation on the Export Performance of South African SMEs. Journal of Global Marketing, 5(2), 1–19. https://doi.org/10.1080/08911762.2021.1894625
Ruiz-Ortega, M. J., Parra-Requena, G., García-Villaverde, P. M., & Rodrigo-Alarcon, J. (2017). How Does the Closure of Interorganizational Relationships Affect Entrepreneurial Orientation? BRQ Business Research Quarterly, 20(3), 178–191. https://doi.org/10.1016/j.brq.2017.04.003
Sinaga, O. S., Candra, V., Inrawan, A., Simatupang, S., & Sudirman, A. (2022). Analysis of Factors Affecting Sustainable Competitive Advantage of Smes During The Covid-19 Pandemic in Pematangsiantar City. Jurnal Manajemen Dan Bisnis, 11(2), 331–343.
Sudirman, A., Hanika, I. M., Halim, F., Julyanthry, J., & Chandra, E. (2022). Testing The Effect Of Customer Capital And Technological Innovation On Business Performance. Jurnal Manajemen Dan Bisnis, 11(2), 321–330.
Sudrartono, T., Nugroho, H., Irwanto, I., Agustini, I. G. A. A., Yudawisastra, H. G., Amaria, H., Nuryanti, N., Lidang, F., & Sudirman, A. (2022). Kewirausahaan UMKM Di Era Digital. Widina Bhakti Persada.
Sukarno, G., & Nirawati, L. (2016). Kontribusi Human Capital Dan Customer Capital Dalam Menggapai Kinerja Café Dan Resto Di Surabaya. Jurnal Ilmu Sosial, 15(2), 137. https://doi.org/10.14710/jis.15.2.2016.137-149
Sukmamedian, H. (2021). Entrepreneurial Orientation on Food and Beverage SMEs’ Performance: The Role of Competitive Advantage and Innovation. Budapest International Research and Critics Institute-Journa, 4(3), 5288–5297. http://www.bircu-journal.com/index.php/birci/article/view/2319
Sulistyo, H., & Ayuni, S. (2020). Competitive Advantages Of Smes: The Roles Of Innovation Capability, Entrepreneurial Orientation, And Social Capital. Contaduria y Administracion, 65(1), 1–18. https://doi.org/10.22201/FCA.24488410E.2020.1983
Sundulusi, C., Sudirman, A., Ratnawati, Syamsuri, Burhanudin, J., Dewi Andriani & Sherry Adelia, Angga Ranggana Putra, S., Muhammad Nazif, Rahmadani Hidayat, H. N., & Nurcholifah, I. (2022). Pemasaran Kewirausahaan. Widina Bhakti Persada.
Sutapa, S., Mulyana, M., & Wasitowati, W. (2017). The Role of Market Orientation, Creativity and Innovation in Creating Competitive Advantages and Creative Industry Performance. Jurnal Dinamika Manajemen, 8(2), 152–166. https://doi.org/10.15294/jdm.v1i1.12756
Torres, A. I., Ferraz, S. S., & Santos-Rodrigues, H. (2018). The Impact Of Knowledge Management Factors In Organizational Sustainable Competitive Advantage. Journal of Intellectual Capital, 19(2), 453–472. https://doi.org/10.1108/JIC-12-2016-0143
Wang, W. Y., & Chang, C. (2005). Intellectual Capital and Performance in Causal Models (Evidence From The Information Technology Industry in Taiwan). Journal of Intellectual Capital, 6(2), 222–236. https://doi.org/10.1108/14691930510592816
Yang, S., & Kang, H. H. (2008). Is Synergy Always Good? Clarifying The Effect Of Innovation Capital And Customer Capital On Firm Performance In Two Contexts. Technovation, 28(10), 667–678. https://doi.org/10.1016/j.technovation.2008.01.004
Zeebaree, M. R. Y., & Siron, R. B. (2017). The Impact of Entrepreneurial Orientation on Competitive Advantage Moderated by Financing Support in SMEs. International Review of Management and Marketing, 7(1), 43–52. http:www.econjournals.com
DOI: https://doi.org/10.37403/sultanist.v12i1.573
Refbacks
- There are currently no refbacks.
Copyright (c) 2024 SULTANIST: Jurnal Manajemen dan Keuangan
SULTANIST: Jurnal Manajemen dan Keuangan is indexed by:
Publisher:
Sekolah Tinggi Ilmu Ekonomi Sultan Agung, Surabaya Street No.19, Proklik Village, West Siantar District, Pematangsiantar, North Sumatra, Indonesia, 21118. E-mail: sultanist@stiesultanagung.ac.id
