Business Strategies and Competitive Advantage: The Role of Performance and Innovation

Ida Farida · Doddy Setiawan

549 citations0/0 files storedJournal of Open Innovation Technology Market and Complexity

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Management and Organizational Practices Business Strategies and Innovation Innovation and Knowledge Management

Abstract

This study aims to examine the effect of business strategies to improve the competitive advantages of small and medium enterprises (SMEs).Further, our study considers the importance of performance and innovation as mediating variables in the relationship between business strategies and competitive advantage.The sample of the study consists of 150 SMEs in the construction and real estate industry.Our findings show that business strategies have a positive impact on competitive advantage.Better business strategies improve the competitive advantage of SMEs.Further, business performance and innovation also mediate the relationship between business strategies and competitive advantages.These results provide evidence of the importance of performance and innovation to improve the competitive advantage.It is suggested that SMEs improve their performance and innovation capability to strengthen their competitive advantages.

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References

2000Dynamic capabilities: what are they?2018Do environmental, social, and governance activities improve corporate financial performance?2012Business model innovation and competitive imitation: The case of sponsor‐based business models 2018How Valuable Is FinTech Innovation?2018Dynamic capabilities as (workable) management systems theory 2019Top management knowledge value, knowledge sharing practices, open innovation and organizational performance 2019Achieving superior organizational performance via big data predictive analytics: A dynamic capability view 2019Environmental sustainability orientation, competitive strategy and financial performance

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