Abstract
This study investigates the influence of resources strategic and competitive strategy on the performance of SMEs in Bali, Indonesia. The sample of this study consists of 149 SMEs, comprised of 114 small businesses and 35 medium enterprises, and selected using the stratified random sampling. The data is analyzed in two steps; the descriptive statistical analysis and inferential analysis. The descriptive analysis aims to discover the characteristics and the responses on the questionnaire items, while the inferential analysis; using the Structural Equation Modeling (SEM) through AMOS software to test the hypothesis of the research. The finding shows that the strategic resources have a positive and significant effect on the competitive strategy; the competitive strategy has a positive and significant effect on performance, and the strategic resources have a positive and significant effect on the performance. Also, it is found that strategic resources have a positive indirect effect on business performance through a competitive strategy. The descriptive analysis reveals that for the resources strategic, the achievement of reputation resources has the highest response of 4.06. Meanwhile, for the competitive strategy, the highest response of 4.08 is given to the focus strategy. The highest response of 3.94 the performance is productivity.
Highlights
A good economic structure is a structure of development supported by all the power of people’s economy (Esfandiara, 2019)
This signifies that the strategic resources used as the basis of competitive strategy have a greater effect on business performance than its direct effect
It is found that strategic resources have a positive indirect influence on business performance through a competitive strategy
Summary
A good economic structure is a structure of development supported by all the power of people’s economy (Esfandiara, 2019). One of the proposed solutions for this challenge is the resource-based operation or management to create a unique competency (Grant, 2010; Mosakowski, 1993) and providing strategic choices to achieve sustainable competitive advantages (Grant, 2010; Barney, 1991). Realising sustainable competitive advantages cant be separated from the resource-based view (RBV) approach that leads the management to identify, control, and develops strategic resources to produce optimal performance (Barney, 1995). The processes of development, maintenance, and control of strategic resources have to be performed from time to time to create a strong foundation for achieving sustainable competitive advantages and to produce a superior performance of the company (Hair et al, 2014). Barney (1995) adds that the survival of a company depends on its resources and the strategy it chooses to empower those resources so that they can respond well to the opportunities and challenges provided by the business environment. Edelman et al (2002) report that human and organizational resources, combined with customer service strategy, can increase a company’s performance
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