The Influence of Business Environment and Capabilities on Transient Competitive Advantage and Their implications for Business Performance of Micro, Small and Medium Enterprises in Indonesia

  • Authors

    • Nurul Hermina
    • Adjeng Mariana
    • Keni Kaniawati
    2018-12-13
    https://doi.org/10.14419/ijet.v7i4.34.25308
  • Transient competitive advantage, Business Performance, SEM, UMKM/MSME, Web-based Sampling.

  • Abstract

    Micro, small and medium enterprises (MSME – Indonesian: UMKM – Usaha Micro, Kecil dan Menengah) are the key to increase growth, create employment, act as the source of people’s income, to fulfil the need of goods and services, to increase the added values which eventually influence the economic growth. This research is aimed to explain how business environment and capability influence the competitive advantage which plays an important role that determines the business performance of MSME. The total sample able to be collected with web-based design is 56 MSME/UMKM from all over Indonesia. The analysis technique used is structural equation modeling (SEM). The study proves that business environment does not significantly influence the business performance of MSME/UMKM. However, this variable contributes significant indirect influence with a greater level than its direct influence. The finding indicates that improvement in business environment will be able to boost the business performance if it is combined with the improvement in competitive advantage of the MSME/UMKM.

     

     


     

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  • How to Cite

    Hermina, N., Mariana, A., & Kaniawati, K. (2018). The Influence of Business Environment and Capabilities on Transient Competitive Advantage and Their implications for Business Performance of Micro, Small and Medium Enterprises in Indonesia. International Journal of Engineering & Technology, 7(4.34), 340-347. https://doi.org/10.14419/ijet.v7i4.34.25308

    Received date: 2019-01-03

    Accepted date: 2019-01-03

    Published date: 2018-12-13