Business strategies and competitive advantage: The role of performance and innovation

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...

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Bibliographic Details
Published inJournal of open innovation Vol. 8; no. 3; pp. 1 - 16
Main Author Farida, Ida
Format Journal Article
LanguageEnglish
Published Basel MDPI 01.09.2022
Elsevier Ltd
Elsevier Limited
Elsevier
Subjects
Business competition
business strategies
Competition
Competitive advantage
innovation
Innovations
Real estate
Small business
Smartphones
Indonesia
innovation
competitive advantage
performance
business strategies
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Summary: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.
ISSN:2199-8531
2199-8531
DOI:10.3390/joitmc8030163