Competitive Strategy and Performance in Traditional Food SMEs: The Role of Competitive Advantage
Keywords:
Entrepreneurial Orientation, Market Orientation, Competitive Advantage, Business PerformanceAbstract
Objective: Improving business success remains a problem for traditional food SMEs. Digital literacy, productivity, legality, financing, branding, human resources, certification products, standard distribution, quality products, quantity products, and customer services are all necessary because of the lack of innovation and technology.
Methodology: This research uses a quantitative approach with Structural Equation Modelling (SEM). The statistical method used to determine the objectives of the study was SmartPLS 3.0.Data collection through a questionnaire and distributed to SMEs in Jabodetabek (Jakarta, Bogor, Bekasi, and Tangerang). The data was obtained 300 respondents.
Findings: The findings demonstrated that entrepreneurial approach had little bearing on how well a business performed. Conversely, market orientation had a favourable and noteworthy impact on firm performance, entrepreneurial orientation on competitive advantage, and market orientation on competitive advantage. Business performance is influenced by competitive advantage as an intervening variable.
Conclusion: These findings prove that managerial skills, decision-making, entrepreneurial orientation, and innovation are essential for traditional food SMEs to optimize business performance and achieve competitive advantage. In addition, this research provides the right insights for the government, SME players, and customers in achieving SMEs’ business goals and promoting traditional Indonesian food products in both domestic and global markets.References
Abdul-Kadhim, A. M., Abd Ali, M. F., & Jassim, A.-H. (2022). The Effect of Employing Concurrent Engineering Dimensions in Achieving Competitive Advantage: an Exploratory Study of The Opinions of a Sample of Workers in The Men’s Ready-Made Garments Factory / Najaf. Tikrit Journal of Administrative and Economic Sciences, 18(58, 2), 292–318. https://doi.org/10.25130/tjaes.18.58.2.17
Abdulwase, R., Ahmed, F., Nasr, F., Abdulwase, A., Alyousofi, A., & Yan, S. (2021). The Role of Business Strategy to Create a Competitive Advantage in The Organization. Journal of Science, 4(4), 135–138. https://doi.org/10.15406/oajs.2020.04.00162
Agus, A., Limakrisna, N., & Muharram, H. (2023). Increasing The Business Performance of Food Processing MSMES in Cirebon By Crating Competitive Advanatnge Through Entrepreneurship Orientation, Dynamic Capabilities and Market Orientation. Journal of Entrepreneurship, 53–70. https://doi.org/10.56943/joe.v2i4.437
Ali, B. J., & Anwar, G. (2021). Business strategy: The influence of Strategic Competitiveness on competitive Advantage. International Journal of Electrical, Electronics and Computers, 6(2), 1–10. https://doi.org/10.22161/eec.62.1
Amelia, N., & Nugroho, S. P. (2024). The Influence Of Work Life Balance On Turnover Inteention Woth Job Engagement and Organizational Citizenship Behaviour As Intervening Variables. International Journal of Global Accounting, Management, Education, and Entrepreneurship, 4(2), 342–359. https://doi.org/10.48024/ijgame2.v4i2.150
Anggraini, P. (2022). Peran Keunggulan Bersaing dalam Memediasi Orientasi Pasar dan Orientasi Kewirausahaan Pada Kinerja UKM Di Masa Pandemi Covid-19. Jurnal Ekonomi Bisnis Digital, 1(3), 398–410. https://doi.org/10.59663/jebidi.v1i3.105
Cano,C, François A. Carrillat, F. J. (2004). A Meta-Analysis of The Relationship Between Market Orientation and Business Performance: Evidence from Five Continents. International Journal of Research in Marketing. https://doi.org/10.1016/S0167-8116(04)00015-1
Chen, Y.-C., Arnold, T., Liu, P.-Y., & Huang, C.-Y. (2023). Understanding The Role of Entrepreneurial Orientation in Creating Ambidextrous Competitive Advantage: a Comparative-Design, Longitudinal Study. European Journal of Marketing, 57(1), 89–124. https://doi.org/10.1108/EJM-08-2021-0661
Correia, R. J., Dias, J. G., & Teixeira, M. S. (2021). Dynamic Capabilities and Competitive Advantages as Mediator Variables Between Market orientation and Business performance. Journal of Strategy and Management, 14(2), 187–206. https://doi.org/10.1108/JSMA-12-2019-0223
Crick, J. M. (2021). The Dimensionality of The Market Orientation Construct. Journal of Strategic Marketing, 29(4), 281–300. https://doi.org/10.1080/0965254X.2019.1677747
Dhameria, V., & Kusumah, A. I. (2024). Analisis Pengaruh Orientasi Pasar dan Orientasi Kewirausahaan terhadap Kinerja UKM Batik di Kabupaten Cirebon. Portofolio: Jurnal Ekonomi, Bisnis, Manajemen, Dan Akuntansi, 21(2), 95–115. https://doi.org/10.26874/portofolio.v21i2.668
Fabrizio, C. M., Kaczam, F., de Moura, G. L., da Silva, L. S. C. V., da Silva, W. V., & da Veiga, C. P. (2022). Competitive Advantage and Dynamic Capability in Small and Medium-Sized Enterprises: a Systematic Literature Review and Future Research Directions. Review of Managerial Science, 16(3), 617–648. https://doi.org/10.1007/s11846-021-00459-8
Fajrul, M., & Saptyana, R. F. (2025). Strategi Peningkatan Daya Saing UMKM Kuliner di Era Digital : Studi Kasus pada Pelaku Usaha di Kota Semarang. MAMEN (Jurnal Manajemen), 4(2), 143–157. https://doi.org/10.55123/mamen.v4i2.5066
Farida, I., & Setiawan, D. (2022). Business Strategies and Competitive Advantage: The Role of Performance and Innovation. Journal of Open Innovation: Technology, Market, and Complexity, 8(3), 163. https://doi.org/10.3390/joitmc8030163
Ferreira, J., Coelho, A., & Moutinho, L. (2020). Dynamic Capabilities, Creativity and Innovation Capability and Their Impact on Competitive Advantage and Firm Performance: The Moderating Role of Entrepreneurial 0rientation. Technovation, 92–93, 102061. https://doi.org/10.1016/j.technovation.2018.11.004
Guevara-Otero, N., Vargas-Perez, A. M., Segovia-Pérez, M., & Laguna-Sánchez, P. (2025). Factors That Determine The Level of Individual Entrepreneurial Orientation: Profiles of. International Entrepreneurship and Management Journal, 21(1), 56. https://doi.org/10.1007/s11365-024-01055-4
Herawati, D. M., & Imronudin, I. (2024). Pengaruh Social E-Wom Dan Price Terhadap Purchase Intention Dengan Brand Trust Sebagai Variabel Mediasi. VALUE, 4(2), 200–219. https://doi.org/10.36490/value.v4i2.1014
Hughes, M., & Morgan, R. E. (2007). Deconstructing The Relationship Between Entrepreneurial Orientation and Business Performance at the Embryonic Stage of Firm Growth. Industrial Marketing Management, 36(5), 651–661. https://doi.org/10.1016/j.indmarman.2006.04.003
Irawan, E., & Sudarmiatin. (2024). Review of Literature: The Impact of Competitive Advantage on Business Marketing Performance. Jurnal Multidisiplin Madani, 4(4), 508–517. https://doi.org/10.55927/mudima.v4i4.8396
Kantor Dagang Indonesia. (2023). UMKM Indonesia.
Kirca, A. H., Jayachandran, S., & Bearden, W. O. (2005). Market Orientation: A Meta-Analytic Review and Assessment of its Antecedents and Impact on Performance. Journal of Marketing, 69(2), 24–41. https://doi.org/10.1509/jmkg.69.2.24.60761
Kiyabo, K., & Isaga, N. (2020). Entrepreneurial Orientation, Competitive Advantage, and SMEs’ Performance: Application of Firm Growth and Personal Wealth Measures. Journal of Innovation and Entrepreneurship, 9(1), 12. https://doi.org/10.1186/s13731-020-00123-7
Mandasari, I. C. S., Rahyuda, I. K., Ekawati, N. W., & Setiawan, P. Y. (2023). Antecedents of Competitive Advantage and Its Consequences on Business Performance. International Journal of Social Science and Business, 7(4), 921–934. https://doi.org/10.23887/ijssb.v7i4.67811
Mouzas, S., & Bauer, F. (2022). Rethinking Business Performance in Global Value Chains. Journal of Business Research, 144, 679–689. https://doi.org/10.1016/j.jbusres.2022.02.012
Na, Y. K., Kang, S., & Jeong, H. Y. (2019). The Effect of Market Orientation on Performance of Sharing Economy Business: Focusing on Marketing Innovation and Sustainable Competitive Advantage. Sustainability, 11(3), 729. https://doi.org/10.3390/su11030729
Najib, M., & Kiminami, A. (2011). Competitive Strategy And Business Performance Of Small And Medium Enterprises In The Indonesian Food Processing Industry. Studies in Regional Science, 41(2), 315–330. https://doi.org/10.2457/srs.41.315
Nguyen Van, I., Le, T. T., & Kotaskova, A. (2023). The Role of Brand and Market Orientation on Competitive Advantage in The Food Sector: Business Strategy’s Moderator Role. British Food Journal, 125(11), 3888–3911. https://doi.org/10.1108/BFJ-01-2023-0010
Porter, M. G. (2019). Supply Chain Integration: Does Organizational Culture Matter? Operations and Supply Chain Management, 12(1), 49–59. https://doi.org/10.31387/oscm0360222
Rua, O. L., & Santos, C. (2022). Linking Brand and Competitive Advantage: The Mediating Effect of Positioning and Market Orientation. European Research on Management and Business Economics, 28(2), 100194. https://doi.org/10.1016/j.iedeen.2021.100194
Runyan, R., Droge, C., & Swinney, J. (2008). Entrepreneurial Orientation versus Small Business Orientation: What Are Their Relationships to Firm Performance? Journal of Small Business Management, 46(4), 567–588. https://doi.org/10.1111/j.1540-627X.2008.00257.x
Santos, G., Marques, C. S., & Ferreira, J. J. M. (2020). Passion And Perseverance As tTwo New Dimensions of An Individual Entrepreneurial Orientation scale. Journal of Business Research, 112, 190–199. https://doi.org/10.1016/j.jbusres.2020.03.016
Sarstedt, M., Ringle, C. M., & Hair, J. F. (2017). Partial Least Squares Structural Equation Modeling. In Handbook of Market Research (pp. 1–40). https://doi.org/10.1007/978-3-319-05542-8_15-1
Schulze, A., Townsend, J. D., & Talay, M. B. (2022). Completing The Market Orientation Matrix: The Impact of Proactive Competitor Orientation on Innovation and Firm Performance. Industrial Marketing Management, 103, 198–214. https://doi.org/10.1016/j.indmarman.2022.03.013
Sin, L. Y. M., Tse, A. C. B., Yau, O. H. M., Lee, J. S. Y., Chow, R., & Lau, L. B. Y. (2000). Market Orientation and Business Performance. Journal of Global Marketing, 14(3), 5–29. https://doi.org/10.1300/J042v14n03_02
Sutrisno, T. F., Gosal, G. G., & Surya, R. (2021). Peran Entrepreneurial Orientation Terhadap Kinerja Perusahaan Melalui Total Quality Management (Studi Di Perusahaan Mebel Pt Kayan Jaya Tanjung). Jurnal Aplikasi Bisnis Dan Manajemen, 7(3), 655–664. https://doi.org/10.17358/jabm.7.3.655
Tirtayasa, S., Syahrial, H., Nasib, & Nofriza, B. (2022). The Effect of Market Orientation and Product Innovation on Performance-Mediated Competitive Advantage Marketing(Case Study of MSME Boutiq Women in Medan Market Center). International Journal of Applied Finance and Business Studies, 10(1), 23–30. Retrieved from https://ijafibs.pelnus.ac.id/index.php/ijafibs/article/view/47
Yi, H.-T., Amenuvor, F. E., & Boateng, H. (2021). The Impact of Entrepreneurial Orientation on New Product Creativity, Competitive Advantage and New Product Performance in SMEs: The Moderating Role of Corporate Life Cycle. Sustainability, 13(6), 3586. https://doi.org/10.3390/su13063586
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 MIX: JURNAL ILMIAH MANAJEMEN
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
The copyright to this article is transferred to Universitas Mercu Buana (UMB) if and when the article is accepted for publication. The undersigned hereby transfers any and all rights in and to the paper including without limitation all copyrights to UMB. The undersigned hereby represents and warrants that the paper is original and that he/she is the author of the paper, except for material that is clearly identified as to its original source, with permission notices from the copyright owners where required. The undersigned represents that he/she has the power and authority to make and execute this assignment.
We declare that this paper has not been published in the same form elsewhere.
Furthermore, I/We hereby transfer the unlimited rights of publication of the above mentioned paper in whole to UMB. The copyright transfer covers the right to reproduce and distribute the article, including reprints, translations, photographic reproductions, microform, electronic form (offline, online) or any other reproductions of similar nature.
The corresponding author signs for and accepts responsibility for releasing this material on behalf of any and all co-authors. This agreement is to be signed by at least one of the authors who have obtained the assent of the co-author(s) where applicable. After submission of this agreement signed by the corresponding author, changes of authorship or in the order of the authors listed will not be accepted.
Retained Rights/Terms and Conditions
Although authors are permitted to re-use all or portions of the Work in other works, this does not include granting third-party requests for reprinting, republishing, or other types of re-use.
