BUSINESS COMPETITIVENESS STRATEGY OF PROCESSED MUSHROOM IN EAST JAVA: A RESOURCE-BASED VIEW MODEL APPROACH

Novi Haryati, Yusti Mauriska Choirunnisa

Abstract


Mushrooms are one of the strategic agro-industrial commodities in Indonesia. It is because the mushroom market share for consumption is very high. People consume mushrooms as a snack, side dishes, and also as a main dish. The mushroom business in Malang Indonesia is very lively, especially in this city, there are many students and employees as consumers who like snacks on the sidelines of their activities. Due to many of those industries, the SME of mushroom needs to increase the production. Leading competitiveness in the product are the factors that must be kept by companies to be successful in their business. This research aims to understand the effect of tangible resources, entrepreneurship orientation, business uncertainty on competitive strategy, and the influence of competitive strategy on the company’s performance. The research uses methods such as quantitative descriptive analysis and inferential (SEM) based on Partial Least Square (PLS). Strategic resources, entrepreneurial orientation, and environmental uncertainty of mushroom small-medium enterprises have a direct effect more than an indirect effect. Strategic resources have the strongest significance if it is compared to entrepreneurial orientation and entrepreneurial uncertainty. Further research is needed to see the effect of competitive strategy on business performance.


Keywords


capability; business performance; competing strategy; strategic resources

Full Text:

PDF

References


Abiodun, E. A. and Harry, E. 2014. SME Firms Performance in Nigeria: Competitive Advantage and Its Impact. International Journal of Research Studies in Management. 3 (2): 75-86.

Agbejule, A. and Burrowes, A. 2007. Perceived environmental uncertainty, supply chain purchasing strategy, and use of MAS information: An empirical study of Finnish firms. Managerial Auditing Journal, 22(9), 913–927. https://doi.org/10.1108/02686900710829417

Agyapong, D. and Attram, A. B. 2019. Effect of ownermanager’s financial literacy on the performance of SMEs in the Cape Coast Metropolis in Ghana. Journal of Global Entrepreneurship Research, 9(1), 1– 13. https://doi.org/10.1186/s40497-019-0191-1

Amoah-Mensah, A. 2013. Strategic Resources and Performance of Rural SMEs. International journal of business and social research, 3, 106-119.

Arifin, J. 2017. SPSS 24 Untuk Penelitian dan Skripsi. Jakarta: PT. Elex Media Komputindo.

Clark, V. L. P. and Creswell, J. W. 2014. Understanding Research: A Consumer’s Guide (2nd ed.). New York: Pearson Education.

Crook, T. S, David, J. K. Jr, James, G. C., and Samuel, Y. T. 2008. Strategic resources and performance: a metaanalysis. Strategic Management Journal, 29, 11411154. https://doi.org/10.1002/smj.703

Drechsler, W. and Natter, M. 2012. Understanding a firm’s openness decisions in innovation. Journal of Business Research, 65(3), 438–445. https://doi.org/ 10.1016/j.jbusres.2011.11.003

Eggers, F., Hansen, D. J., and Davis, A. E. 2012. Examining the relationship between customer and entrepreneurial orientation on nascent firms’ marketing strategy. International Entrepreneurship and Management Journal, 8(2), 203–222. https://doi.org/ 10.1007/s11365-011-0173-4

Etikan, I., Musa, S. A., and Alkassim, R. S. 2015. Comparison of Convenience Sampling and Purposive Sampling. American Journal of Theoretical and Applied Statistics, 5(1), 1–4. https://doi.org/ 10.11648/j.ajtas.20160501.11

Fraenkel, J. R., Wallen, N. E., and Hyun, H. H. 2012. How to Design and Evaluate Research in Education. Journal of Petrology (8th ed., Vol. 369). New York: McGraw-Hill. https://doi.org/10.1017/ CBO9781107415324.004

Gelderen, Marco von, Michael Frese, and Roy Thurik. 2000. Strategies, Uncertainty, and Performance of Small Business Startups. Journal of Small Business Economics. 15(2): 165–181. https://doi.org/10.1023/ A:1008113613597

Gibson, S. G., McDowell, W. C., and Harris, M. L. 2014. Small Business Owner Satisfaction with Financial Performance A longitudinal Study. New England Journal of Entrepreneurship, 10(2), 5. https://doi.org/ 10.1108/NEJE-17-01-2014-B002

Hariandi, M. S. I., Gumanti, T. A., and Wahyudi, E. 2019. E-Commerce, Competitive Advantage, And Business Performance Of Banyuwangi Small And Medium-Sized Enterprises. International Journal of Scientific and Technology Research, 8(08).

Haryati, N., Lilavalicakul, A., and Surrahman, Moch Adi. 2019. Can Small and Medium Enterprises Survive in MEA 2025: A Case Study of Agro-industry SMEs in Indonesia. APMBA (Asia Pacific Management and Business Application), [S.l.], v. 8, n. 1, p. 1-10, Aug. 2019. ISSN 2615-2010. doi: https://doi.org/ 10.21776/ub.apmba.2019.008.01.1.

Haryati N., Surahman, M. A., Kurniawan, M., Amalia. F. 2018. Entrepreneurial Marketing Strategy On Tempe Sanan Chips Small And Medium Entreprises In Malang. Advanced in Food Science, Sustainable Agriculture, and Agroindustrial Engineering (AFSSAAE). Vol 1 (2). DOI: https://doi.org/10.21776/ ub.afssaae.2018.001.02.5

Herlinawati, E. and Machmud, A. 2020. The effect of innovation on increasing business performance of SMEs in Indonesia. WSEAS Transactions on Business and Economics, 17, 51–57. https://doi.org/ 10.37394/23207.2020.17.7

Kristiansen, S. 2002. Competition and Knowledge in Javanese Rural Business. Singapore Journal of Tropical Geography. Vol (23): 52-69. https://doi.org/ 10.1111/1467-9493.00118

Kwabena, G.-Y., Qiang, M., Wenyuan, L., Qalati, S. A., and Erusalkina, D. 2019. Effects of the Digital Payment System on SMEs Performance in Developing Countries; a Case of Ghana. EPRA International Journal of Economic and Business Review. Vol (1): 79–87. https://doi.org/10.36713/epra2997

Marsono and Rachman, F. 2014. Analisis Pengaruh Intellectual Capital terhadap Kinerja Keuangan dan Nilai Pasar Perusahaan (Studi pada Perusahaan yang Terdaftar di Bursa Efek Indonesia Tahun 2008-2012). Diponegoro Journal of Accounting, 3(1):1-13.

McMahon, R. G. P. 2007. Ownership structure, business growth, and financial performance amongst SMEs: From Australia’s business longitudinal survey. Journal of Small Business and Enterprise Development. Vol (14): 458-476.

Miraza, Z. and Hafas H. R. 2015. Dampak Sumber Daya VRIN terhadap Keunggulan Bersaing dan Kinerja (Studi pada UKM di Medan). Jurnal Manajemen dan Organisasi. 6 (2): 91-103.

Puspita, L. E., Christiananta, B., and Ellitan, L. 2020. The Effect of Strategic Orientation, Supply Chain Capability, Innovation Capability on Competitive Advantage and Performance of Furniture Retails. International Journal of Scientific and Technology Research, Vol 9 (03): 4521-4529.

Putra, I. G. D. U. and Rustika, I. M. 2015. Hubungan Antara Perilaku Menolong dengan Konsep Diri pada Remaja Akhir yang Menjadi Anggota Tim Bantuan Medis Janar Duta Fakultas Kedokteran Universitas Udayana. Jurnal Psikologi Udayana. 2 (2): 198-205.

Putra, Z. F. S., Sholeh, M., and Widyastuti, N. 2014. Analisis Kualitas Layanan Website BTKP-DIY Menggunakan Metode Webqual 4.0. Jurnal JARKOM. 1 (2): 174184.

Qi, Y., Xiande Zhao, and Chwen Sheu. 2011. The Impact of Competitive Strategy and Supply Chain Strategy on Business Performance: The Role of Environmental Uncertainty .. Decision Sciences: A Journal of the Decision Sciences Institute. Vol 42 (371389). https://doi.org/10.1111/j.1540-5915.2011. 00315.x

Riana, I. G, Suparna, G, Gede Suparna, and Wibawa. I. M. A. 2020. The Influence Of Strategic Resources And Competitive Strategy On Improving Of Business Performance. RJOAS Russian Journal of Agricultural and Socio-Economic Sciences, 1 (97).

Rose, R. C., Abdullah, H., and Ismad, A. I. 2010. A Review on the Relationship between Organizational Resources, Competitive Advantage, and Performance. The Journal of International Social Research. 3 (11): 488-498.

Rubio, A., & Aragón, A. 2009. SMEs COMPETITIVE BEHAVIOR: Strategic resources and strategies: The journal of the Iberoamerican Academy of management. Management Research, 7(3), 171-190. DOI: http://dx.doi.org/10.2753/JMR1536-5433070301

Smit, Yolande and J. A. Watkins. 2012. A literature review of small and medium enterprises (SME) risk management practices in South Africa. African Journal of Business Management, 6(21), 6324–6330.

Solimun, Fernandes, A. A. R., and Nurjannah. 2017. Metode Statistika Multivariat - Pemodelan Persamaan Struktural (SEM) Pendekatan WarpPLS. UB Press.

Widener, Sally K. 2006. Associations between strategic resource importance and performance measure use: The impact on firm performance. Management Accounting Research, Vol. 17 (4): 433-457, https:// doi.org/10.1016/j.mar.2005.10.002.

Wijewardena, H., Gunapala Nanayakkara, and Anura De Zoysa. 2008. The Owner/manager’s mentality and financial performance of SMEs. Journal of Small Business and Enterprise Development, 15(1), 150161. http://doi.org/10.1108/14626000810850892




DOI: http://dx.doi.org/10.21776/ub.jam.2020.018.04.01

Refbacks

  • There are currently no refbacks.