Building a Competitive Strategy Model in Improving Business Performance of Processed Food Businesses in Badung District
| International Journal of Economics and Management Studies |
| © 2023 by SSRG - IJEMS Journal |
| Volume 10 Issue 10 |
| Year of Publication : 2023 |
| Authors : I Gusti Ayu Ketut Giantari, I Made Wardana, Tjokorda Gde Raka Sukawati, Ni Made Dwi Ratna Cahyanti, Ni Luh Wayan Melia Dwi Utami |
10.14445/23939125/IJEMS-V10I10P102
How to Cite?
I Gusti Ayu Ketut Giantari, I Made Wardana, Tjokorda Gde Raka Sukawati, Ni Made Dwi Ratna Cahyanti, Ni Luh Wayan Melia Dwi Utami, "Building a Competitive Strategy Model in Improving Business Performance of Processed Food Businesses in Badung District," SSRG International Journal of Economics and Management Studies, vol. 10, no. 10, pp. 12-19, 2023. Crossref, https://doi.org/10.14445/23939125/IJEMS-V10I10P102
Abstract:
The problem faced by food-processed SMEs in Badung Regency in the last three years is the decline in business performance, especially after the Covid 19 Pandemic and the emergence of new competitors. This research aims to build a competitive strategy model (partnership strategy) to improve the business performance of food-processed SMEs in Badung Regency. This research uses a quantitative approach with 31 respondents of processed food SMEs in Badung Regency taken using the census method. The research instrument was tested for validity and reliability, and the data analysis technique used descriptive statistical analysis and inferential statistics (SEM-PLS). The results showed that the intensity of competition has a negative and significant effect on business performance, meaning that the higher the intensity of competition, the lower the business performance. Digital marketing has a positive and significant effect on business performance, meaning that high use of digital marketing causes high business performance. Competitive strategy can partially mediate between the intensity of competition and digital marketing on the business performance of food-processed SMEs in Badung Regency.
Keywords:
Phrases competitive intensity, Digital marketing, Competitive strategy, Business performance.
References:
[1] Syed Zambery Ahmad, Abdul Rahim Abu Bakar, and Norita Ahmad, “Social Media Adoption and its Impact on Firm Performance: The Case of the UAE,” International Journal of Entrepreneurial Behavior and Research, vol. 25, no. 1, pp. 84-111, 2019.
[CrossRef] [Google Scholar] [Publisher Link]
[2] Sulaiman Ainin et al., “Factors Influencing the Use of Social Media by SMEs and its Performance Outcomes,” Industrial Management and Data Systems, vol. 115, no. 3, pp. 570-588, 2015.
[CrossRef] [Google Scholar] [Publisher Link]
[3] Neil Morris, Understanding Digital Marketing: Marketing Strategies for Engaging the Digital Generation, Journal of Direct Data and Digital Marketing Practice, vol. 10, pp. 384-387, 2009.
[CrossRef] [Google Scholar] [Publisher Link]
[4] Rajiv D. Banker, Raj Mashruwala, and Arindam Tripathy, “Does a Differentiation Strategy Lead to More Sustainable Financial Performance than a Cost Leadership Strategy?,” Management Decision, vol. 52, no. 5, pp. 872-896, 2014.
[CrossRef] [Google Scholar] [Publisher Link]
[5] Jay Barney, “Firm Resources and Sustained Competitive Advantage,” Journal of Management, vol. 17, no. 1, pp. 99-120.
[CrossRef] [Google Scholar] [Publisher Link]
[6] Yingxia Cao et al., “Using Social Media for Competitive Business Outcomes,” Journal of Advances in Management Research, vol. 15, no. 2, pp. 211-235, 2018.
[CrossRef] [Google Scholar] [Publisher Link]
[7] Yang Chen et al., “IT Capabilities and Product Innovation Performance: The Roles of Corporate Entrepreneurship and Competitive Intensity,” Information and Management, vol. 52, no. 6, pp. 643-657, 2015.
[CrossRef] [Google Scholar] [Publisher Link]
[8] Febriyantoro, Mohamad Trio, and Debby Arisandi, “Pemanfaatan Digital Marketing Bagi Usaha Mikro, Kecil Dan Menengah Pada Era Masyarakat Ekonomi Asean,” journal Riset Manajemen and Bisnis Dewantara, vol. 1, no. 2, pp. 61-76, 2018.
[CrossRef] [Google Scholar] [Publisher Link]
[9] Reza Ghasemi et al., “The Relationship among Strategy, Competition and Management Accounting Systems on Organizational Performance,” European Online Journal of Natural and Social Sciences, vol. 4, no. 3, pp. 565-581, 2015.
[Google Scholar] [Publisher Link]
[10] Aurora Garrido-Moreno et al. “Social Media Use and Value Creation in the Digital Landscape: A Dynamic-Capabilities Perspective,” Journal of Service Management, vol. 31, no. 3, pp. 313-343, 2020.
[CrossRef] [Google Scholar] [Publisher Link]
[11] I. Gusti Ayu Ketut Giantari et al., “The Role of Digital Marketing in Mediating the Effect of the COVID-19 Pandemic and the Intensity of Competition on Business Performance,” International Journal of Data and Network Science, vol. 6, no. 1, pp. 217-232, 2022.
[CrossRef] [Google Scholar] [Publisher Link]
[12] Irene Goll, Nancy Brown Johnson, and Abdul A. Rasheed, “Knowledge Capability, Strategic Change, and Firm Performance: The Moderating Role of the Environment,” Management Decision, vol. 45, no. 2, pp. 161-179, 2007.
[CrossRef] [Google Scholar] [Publisher Link]
[13] Gurjeet Kaur Sahi et al., “Relating Entrepreneurial Orientation with Operational Responsiveness Roles of Competitive Intensity and Technological Turbulence,” International Journal of Operations and Production Management, vol. 39, no. 5, pp. 739-766, 2019.
[CrossRef] [Google Scholar] [Publisher Link]
[14] YingKai Li, Heidrick and Struggles CEO, China Marketing Press, pp. 1-208, 2009.
[Google Scholar] [Publisher Link]
[15] Hugo K.S Lam, Andy C.L Yeung, and T.C. Edwin Cheng, “The Impact of Firms’ Social Media Initiatives on Operational Efficiency and Innovativeness,” Journal of Operations Management, vol. 47, pp. 28-43, 2016.
[CrossRef] [Google Scholar] [Publisher Link]
[16] Chang Won Lee, Ik‐Whan G. Kwon, and Dennis Severance, “Relationship between Supply Chain Performance and Degree of Linkage among Supplier, Internal Integration, and Customer,” Supply Chain Management, vol. 12, no. 6, pp. 444- 452, 2007.
[CrossRef] [Google Scholar] [Publisher Link]
[17] Lokman Mia, and Lanita Winata, “Manufacturing Strategy and Organisational Performance: The Role of Competition and MAS Information,” Journal of Accounting and Organizational Change, vol. 10, no. 1, pp. 83-115, 2014.
[CrossRef] [Google Scholar] [Publisher Link]
[18] Michael E. Porter, Competitive Advantage, Free Press, 1985.
[Google Scholar]
[19] Raphael Odoom, and Priscilla Mensah, “Brand Orientation and Brand Performance in SMEs: The Moderating Effects of Social Media and Innovation Capabilities,” Management Research Review, vol. 42, no. 6, pp. 155-171, 2019.
[CrossRef] [Google Scholar] [Publisher Link]
[20] Eunho Park et al., “Social Dollars in Online Communities: The Effect of Product, User, and Network Characteristics,” Journal of Marketing, vol. 82, no. 1, pp. 93-114, 2018.
[CrossRef] [Google Scholar] [Publisher Link]
[21] Michael E. Porter, Competitive Strategy, Free Press, 1980.
[Publisher Link]
[22] Finny Redjeki, and Azhar Affandi, “Utilization of Digital Marketing for MSME Players as Value Creation for Customers during the COVID-19 Pandemic,” International Journal of Science and Society, vol. 3, no. 1, pp. 40-55, 2021.
[CrossRef] [Google Scholar] [Publisher Link]
[23] Josua Tarigan, and Ridwan Sanjaya, Creative Digital Marketing, Elex Media Komputindo, 2013.
[Google Scholar] [Publisher Link]
[24] Tejinderpal Singh, Raj Kumar, and Prateek Kalia, “E-marketing Practices of Micro, Small and Medium-Sized Enterprises: Evidence from India,” Strategic Corporate Communication in the Digital Age, pp. 197-216, 2021.
[CrossRef] [Google Scholar] [Publisher Link]
[25] Thayla Tavares Sousa-Zomer, Andy Neely, and Veronica Martinez, “Digital Transforming Capability and Performance: A Microfoundational Perspective,” International Journal of Operations and Production Management, vol. 40, no.7/8, pp. 1095-1128, 2020.
[CrossRef] [Google Scholar] [Publisher Link]
[26] T. Aditya Kumar, G. Sravanthi, and D. Ratna Deepthi, “Competitive Advantage through Business Intelligence for E-Commerce,” International Journal of Computer and Organization Trends, vol. 3, no. 11, pp. 579-585, 2013.
[Google Scholar] [Publisher Link]
[27] Tracy L. Tuten, and Michael R. Solomon, Social Media Marketing: 2nd Edition. London: SAGE Publications Ltd, 2014.
[Publisher Link]
[28] Ni Nyoman Kerti Yasa, “The Role of Partnership Strategy to Improve Company Performance (Study on Rural Banks in Bali Province),” EKUITAS (Jurnal Ekonomi dan Keuangan), vol. 14, no. 3, pp. 305-329, 2010.
[CrossRef] [Google Scholar] [Publisher Link]
[29] Yuliansyah Yuliansyah, Bruce Gurd, and Nafsiah Mohamed, “The Significant of Business Strategy in Improving Organizational Performance,” Humanomics, vol. 33, no. 1, pp.56-74, 2017.
[CrossRef] [Google Scholar] [Publisher Link]
[30] Wendy Ritz, Marco Wolf, and Shaun McQuitty, “Digital Marketing Adoption and Success for Small Businesses: The Application of the Do-It-Yourself and Technology Acceptance Models,” Journal of Research in Interactive Marketing, vol. 13, no. 2, pp. 179-203, 2019.
[CrossRef] [Google Scholar] [Publisher Link]
[31] Cemal Zehir, Esin Can, and Tugba Karaboga, “Linking Entrepreneurial Orientation to Firm Performance: The Role of Differentiation Strategy and Innovation Performance,” Procedia - Social and Behavioral Sciences, vol. 210, pp.358-367, 2015.
[CrossRef] [Google Scholar] [Publisher Link]