Abstract
The purpose of the present study is to analyse the effect of managerial competence, information access on cost, benefit differentiation of small business products. This research is done in five district in South Sulawesi— Makassar, Maros, Bantaeng, Bulukumba and Tanah Toraja. The populations of this study are owners and managers of food and beverage business, wood and rattan furniture, convection and apparel. The sample was chosen purposively for 170 responders. Survey and questionnaire were used in data collection. Then the data were analysed descriptively and structural equation model with AMOS (Analysis of moment structural) program.The results of the study show that the success of small-scale enterprises is directly influenced by strategic factors, namely managerial competence, information access, and product differentiation. The factors of negative cost advantage but significant influence the success of the business because customers prefer the uniqueness. If small entrepreneurs in South Sulawesi want to succeed, then it should pay attention to the factor of product differentiation superiority because the influence is big enough and significant to the success of small business. This identifies that small business products should be more unique in terms of more value than a cheaper price.Keywords: Manager's Competence, Access to Information, Cost Advantage, Advantage of Deferment, Business Success.
Highlights
Small and Medium Enterprises (SME) are important actors in the economy of a country or region
The result of this study showed that manager competence is very necessary for small businesses and is a prerequisite for the formation of corporate power to support competitive advantage, especially cost advantage in the company
Competitive advantage is a prerequisite for the company to be able to compete in the era of free trade as an influence of globalization in the economic field. These results show that some small-scale companies have high differentiation advantages in the form of product design, product quality and service, but have low cost advantages, resulting in low competitive advantage
Summary
Small and Medium Enterprises (SME) are important actors in the economy of a country or region. The number of business actors in Indonesia's MSME (Micro Small and Medium Enterprises) industry is among the most among other countries, especially since 2014. The number of MSME in Indonesia continues to improve from 2015 to 2017 and will continue to grow (MSME data 2015, 2016, 2017). Data from the Ministry of Cooperatives and Small-Medium Enterprises stated that there are about 57.8 million actors of SMEs in Indonesia in 2014. In 2017 and the years forecasted, it is estimated that the number of MSME perpetrators will continue to grow. MSMEs have an important and strategic role in national economic development. MSMEs play a role in distributing development outcomes
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