The Model of Competitive Advantage for Increasing Business Performance in Small and Medium Industries of Woven Fabric (Endek) in Bali Province

I Putu Pratama Adiputra, I Nengah Suardhika, Anik Yuesti

Abstract


One of the Province of Bali's key creative economy sectors that places an emphasis on particular artistic and cultural inventiveness is the woven fabric (endek) sector. The business must make strategic attempts to survive, nonetheless, given the increasingly tough commercial competition and the limited resources available. With the mediating role of competitive advantage, this work intends to further research on the indirect effects of product innovation and market orientation on business performance. In 9 districts and cities throughout Bali Province, this study used a proportional sample technique. Partial Least Square analysis was used to process 78 questionnaires from SME owners of woven fabric (endek). Market orientation can be applied to achieve a competitive advantage, according to the analysis's findings, which can have a stronger impact on business success. The performance of businesses is also directly impacted by market orientation. According to other findings, product innovation has no real impact on how well a company performs. The improvement of business performance in SME woven fabric (endek) in Bali Province, however, can be determined by a product innovation that can produce a competitive advantage.

 

Keywords: Market Orientation, Product Innovation, Competitive Advantage, Business Performance.


Keywords


Market orientation, product innovation, competitive advantage, business performance

Full Text:

PDF

References


Aditi, B. (2017, December). The Effect of Attributes Product’s Analysis, Halal Certification, And Product Innovation to The Interest of Consumer Buying-Back Through the Advantage Competitive of Micro Small and Medium Business (MSMB) In Medan. In Journal of Physics: Conference Series (Vol. 930, No. 1, p. 012020). IOP Publishing.

Agyapong, F.O., Agyapong, A., and Poku, K. (2017) Nexus between social capital and performance of micro and small firms in an emerging economy: The mediating role of innovation, Cogent Business, and Management, 4. DOI: 10.1080/23311975.2017.1309784

Aksoy, H. (2017). How do innovation culture, marketing innovation, and product innovation affect the market performance of small and medium-sized enterprises (SMEs)? Technology in Society, 51(4), 133-141. DOI: 10.1016/j.techsoc.2017.08.005

Alihusna, Alida. P, and Juharsah. (2019) Effects of Market Orientation, Innovation, Entrepreneurship Orientation on Competitive Advantage and Marketing Performance. Jurnal Manajemen, Bisnis dan Organisasi. Vol.3 (2). DOI: http://dx.doi.org/10.33772/jumbo.v6i1.21175

Astrid, P. (2017). The effect of market orientation and innovation on competitive advantages. Research Journal of Business and Management, 4(4), 549-558. DOI: 10.17261/Pressacademia.2017.761

Barney, J., Ketchen, D., and Wright, M. (2011) The Future of Resource-based Theory: Revitalization or decline? Journal of Management, 37(5), 1299–1315. DOI: 10.1177/0149206310391805

Christian, M., & Justinius, J. (2021). Identifying Determinants of Competitive Advantage for Ayam Geprek Business in Jakarta During the Pandemic Covid-19. Journal of Business & applied management, 14(1), 83-98. DOI: http://dx.doi.org/10.30813/jbam

Coccia, M. (2017). Sources of technological innovation: Radical and incremental innovation problem-driven to support the competitive advantage of firms. Technology Analysis & Strategic Management, 29(9), 1048-1061.

DOI: https://doi.org/10.1080/09537325.2016.1268682

Dewi, N. W. P. N., & Suparna, G. (2017). Peran Inovasi dalam Memediasi Pengaruh Orientasi Kewirausahaan terhadap Keunggulan Bersaing Industri Kain Endek (Doctoral Dissertation, Udayana University).

Do, B., & Nguyen, N. (2020). The links between proactive environmental strategy, competitive advantages and firm performance: An empirical study in Vietnam. Sustainability, 12(12), 4962. DOI:10.3390/su12124962

Ekawati, N. W., Rahyuda, I. K., Yasa, K. N. N., and Sukaatmadja, I. P. G. (2016) Implementation of Ecoprenership and Green Innovation in Building Competitive Advantage to Generate Success of New Spa Products in Bali. International Bussiness Management, 10(14): 2660-2669. DOI:10.1108/ibm

Fatach, I., & Nursyamsiah, S. (2019). The Effect of Responsive and Proactive Market Orientation on Product Innovation and Company Performance: A Case Study on MSMEs in the Culinary Field in DI Yogyakarta. University Library of Munich, Germany. https://mpra.ub.uni-muenchen.de/91257/

Ghozali, I. (2014) Model Persamaan Struktural: Konsep & Aplikasi Dengan Program Amos 16.0, Badan Penerbit Universitas Diponegoro, Semarang.

Harjadi, D., Fatmasari, D., & Nurhasanah, A. S. (2020). Market Orientation and Product Innovation To Increase Competitive Advantages And Its Impact On Marketing Performance. Al-Amwal: Jurnal Ekonomi dan Perbankan Syari'ah, 12(1), 12-21. DOI: 10.24235/amwal.v1i1.5457

Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139-152. DOI: 10.2753

Herman, H., Hady, H., & Arafah, W. (2018). The influence of market orientation and product innovation on the competitive advantage and its implication toward Small and Medium Enterprises (UKM) performance. International Journal of Science and Engineering Invention, 4(08). DOI: 10.23958/ijsei

Hong, T. L., Cheong, C. B., & Rizal, H. S. (2016). Service innovation in the Malaysian banking industry towards sustainable competitive advantage through environmentally and socially practices. Procedia-Social and Behavioral Sciences, 224, 52-59. DOI: https://doi.org/10.1016/j.sbspro.2009.01.001

Hitt, M.A., Ireland, R.D. and Hoskisson, R.E. (2011) Strategic Management: Competitiveness & Globalization, 9th Edition, South-Western Cengage Learning, Oklahoma.

Ho, K. L. P., Nguyen, C. N., Adhikari, R., Miles, M. P., & Bonney, L. (2018). Exploring market orientation, innovation, and financial performance in agricultural value chains in emerging economies. Journal of Innovation & Knowledge, 3(3), 154-163. DOI: https://doi.org/10.1016/j.jik.2019.11.003.

Kilic, S. and Yorukoglu, Ö. (2020). Effects of Market Orientation and Innovation Orientation on Innovation and Export Performance of Export Businesses. Business & Management Studies: An International Journal. Vol.8 (1) 45. DOI: https://doi.org/10.15295/bmij.v10i2.2034

Kiyabo, K., & Isaga, N. (2020). Entrepreneurial orientation, competitive advantage, and SMEs’ performance: application of firm growth and personal wealth measures. Journal of Innovation and Entrepreneurship, 9(1), 1-15. DOI: https://doi.org/10.1186/s13731-022-00235-2

Kotler, P. dan Armstrong, G. (2012) Prinsip-prinsip Pemasaran. Edisi 13. Jilid 1. Jakarta: Erlangga.

Manurung, M. T., Sugiarto, P., & Munas, B. (2016). Membangun Keunggulan Bersaing Untuk Meningkatkan Kinerja Bisnis Pada Industri Kecil Menengah Tenun Ikat di Troso Jepara (Doctoral Dissertation, UNDIP: Fakultas Ekonomika dan Bisnis).

Muh. H.A., Rahman, A.K., Syamsu, A., and Madris (2019) Marketing Performance Mediates Between Iconic Product Innovation and Sustainable Competitive Advantages. International Journal Of Advanced Research. Vol.7 (11). DOI: 10.21474/IJAR01

Narida, N., Sastrya, W. H., & Achmadi, S. (2021). The Influence of Product Innovation, Market Orientation and Organizational Culture on Business Performance with The Competitive Advantage as Intervening Variable: Empirical Study Of Agricultural Creative Industry MSMEs At Bojonegoro Regency Of East Java, Indonesia. Russian Journal of Agricultural and Socio-Economic Sciences, 8(116), August 2021. DOI: 10.18551/rjoas.2021-06.01

Pramesti, N. M V., dan Giantari, I. G. A. K. (2016) Peran Orientasi Pasar Memediasi Pengaruh Orientasi Kewirausahaan Terhadap Kinerja UKM Industri Kerajinan Endek. E-Jurnal Manajemen Unud. 5(9): 5754-578.

DOI: https://doi.org/10.24843/EJMUNUD.2022.v11.i07

Prajogo, D. I. (2016). The strategic fit between innovation strategies and business environment in delivering business performance. International journal of production Economics, 171, 241-249. DOI: https://doi.org/10.1016/S0925-5273(20)30335-2

Prasetiyo, B. W., & Pertiwi, I. F. P. (2021). The Influence of Product Innovation, Marketing Strategy, and Entrepreneurship Orientation on Sharia Hotel Marketing Performance in the Covid-19 Pandemic Period with Competitive Advantage as an Intervening Variable. Journal of Business and Management Review, 2(9), 605-619.

Rini, R., Lisnini, L., Maretha, F., & Pebrianti, Y. (2020). Pengaruh Orientasi Kewirausahaan, Orientasi Pasar Dan Orientasi Pembelajaran Terhadap Keunggulan Bersaing Dan Kinerja Usaha (Studi Pada Usaha Kecil Pengolah Makanan di Kota Palembang). Jurnal Aplikas Manajemen dan Bisnis. 1(1), 15-26. DOI: 10.5281/zenodo.4273932

Roespinoedji, R., Saudi, M., Hardika, A., & Rashid, A. (2019). The effect of green organizational culture and green innovation in influencing competitive advantage and environmental performance. International Journal of Supply Chain Management, 8(1), 278-286. DOI: 10.47604/ijscm

Romadliyatun, R., Harini, C., & Malik, D. (2019). The Effect of Market Orientation and Product Innovation On Marketing Performance Died By Competitive Advantage (Case Study at PT. Indrakinarya Mugisantosa Semarang). Journal of Management. Vol. 5 (5). DOI: https://doi.org/10.1016/j.jm.2004.06.009

Sharma. P., Davcik. N., & Pillai. K. G. (2016). Product innovation as a mediator in the impact of R&D expenditure and brand equity on marketing performance. Journal of Business Research. 69 (12), 5662-5669. DOI: https://doi.org/10.1016/S0148-2963(21)00512-9

Suardhika, I. N. (2021). Model Strategi Bersaing Berbasis Sumberdaya Bagi Usaha Kecil Dan Menengah. CV. AZKA PUSTAKA.

Suardhika, I. N., & Adriati, I. G. A. W. (2018). Strategic Orientation Based on Business Environment and Entrepreneurs Behavior as Well as its Effects on SME Performance and Competitiveness in Bali Indonesia. International Journal of Contemporary Research and Review, 9(02).

DOI: http://dx.doi.org/10.15520/ijcrr/2018/9/02/417.

Sunariani, N. N., Gorda, A. O. S., & Mahaputra, I. I. R. (2017). Pemberdayaan usaha mikro kecil dan menengah (umkm) melalui program binaan di provinsi Bali. Jurnal Ilmiah Manajemen dan Bbisnis, 2(1), 221-236. DOI: 10.38043 by Crossreff

Udriyah, U., Tham, J., & Azam, S. (2019). The effects of market orientation and innovation on competitive advantage and business performance of textile SMEs. Management Science Letters, 9(9), 1419-1428. DOI: 10.5267/j.msl.2019.5.009

Winarso, W. (2020). Competitive advantage and marketing performance on SMEs: market orientation and innovation of local product in Bekasi, Indonesia. Test engineering & management, 83(March), 18385-18395.

Zaefarian. G., Forkmann. S., and Mitrega. M. (2017) A Capability Perspective on Relationship Ending and its Impact on Product Innovation Success and Firm Performance. Long Range Planning, 50 (2). pp. 184-199. DOI: https://doi.org/10.1016/S0024-6301(21)00064-9




DOI: https://doi.org/10.32535/ijabim.v8i1.1858

Refbacks

  • There are currently no refbacks.


Copyright (c) 2023 I Putu Pratama Adiputra, I Nengah Suardhika, Anik Yuesti

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Flag Counter

Published by: 

AIBPM Publisher

Editorial Office:

JL. Kahuripan No. 9 Hotel Sahid Montana, Malang, Indonesia
Phone:
+62 341 366222
Email: journal.ijabim@gmail.com
Website: http://ejournal.aibpmjournals.com/index.php/IJABIM

Supported by: Association of International Business & Professional Management 

If you are interested to get the journal subscription you can contact us at admin@aibpm.org.

ISSN 2614-7432 (Print)
ISSN 2621-2862 (Online)

DOI: Prefix 10.32535 by CrossREF

International Journal of Applied Business and International Management (IJABIM) INDEXED:

    

    

     

In Process

   

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.