Effect of Industry Competıtıon and Entrepreneurıal Company to Implementatıon of Dıfferentıatıon Strategy, SME Performance, and Poverty Allevıatıon

Ni Nyoman Kerti Yasa, Putu Gde Sukaatmadja, Henny Rahyuda, I.G.A Ketut Giantari

Abstract


The purpose of this study was to determine the effect intensity of industry competition and entrepreneurial company to the implementation of differentiation strategy, SME (Small and Medium Enterprise) performance, and poverty alleviation. In this study examined five variables, namely intensity of industry competition, entrepreneurial company, implementation of differentiation strategy, and SME performance, and poverty alleviation. This study took place in the Gianyar regency with target population of the SME industry. Sampling was purposive sampling study. Based on Slovin's formula, the number of samples taken was as many as 100 SME that spread across districts in Gianyar regency. Respondents were managers. Statistical analysis was used to test hypothesis is Structural Equation Model (SEM). The results showed that the intensity of industry competition has positive and significant effect on the implementation of differentiation strategy, and the intensity of industry competition has positive and significant effect on the performance of SME. Entrepreneurial company has positive and not significant effect on the implementation of differentiation strategy, and entrepreneurial company also has positive and not significant effect on the performance of SME, as well as the implementation of differentiation strategy has positive and significant effect on the performance of SME. Furthermore, SME performance improvement can enhance poverty alleviation in the Gianyar regency. And for the future, SME in Gianyar regency should be intensified to implement strategy of differentiation and increase entrepreneurial company in order to improve the performance of SME and their implications for poverty alleviation in Gianyar regency.


Keywords


Intensity of industry competition; entrepreneurial company; implementation of differentiation strategy; SME performance and poverty alleviation

Full Text:

PDF

References


Akinboade-akinloye, Oludele and Kinfack, Emilie Chanceline, (2012), Regulation, Awareness, compliance and SME Performance in Cameroon's manufacturing and retail sectors, International Journal of Social Economics, Vol. 39 Iss: 12, pp. 1 – 30.

Bennett R.J. and Smith Collin , (2002), Competitive conditions, competitive advantage and the location of SMEs, Journal of Small Business and Enterprise Development, Vol. 9 Iss: 1, pp.73 - 86

Dollar David and Kraay Aart, (2002), Growth is good for the poor. Journal of Economic Growth, Springer, Vol. 7 No. 3, pp.195-225.

Edelman Linda F., Candida G. Brush and Tatiana Manolova. (2002). The Mediating Role of Strategy on Small Firm Performance. Journal of Busness Venturing. pp. 1-50.

Elkington, J. (1997). Cannibals With Forks, The Triple Bottom Line of 21st Century Business, Oxford : Capstone Publishing Ltd.

Ha-Brookshire, (2009), Does the Firm Size Matter on Firm Entrepreneurship and Performance? U.S. Apparel Import Intermediary Case, Journal of Small Business and Enterprise Development, Vol. 16 No. 1, 2009, pp. 131-145.

Hair. JR., Anderson, R.E., Thatan, R.I and Black W.C. (1995). Multivariate Data Analysis. Fourth Edition, Prentice Hall, New Yersey.

Kotler Philip, and Keller, (2009), Marketing Management, 10th ed., Prentice Hall, Englewood Cliffs, New Jersey: United States of America.

Ladzani Mmboswobeni Watson and Seeletse Solly Matshonisa, (2012), Business social responsibility: how are SMEs doing in Gauteng, South Africa?, Social Responsibility Journal, Vol. 8 Iss: 1 pp. 87 – 99.

Lau Theresa, K.F. Chan, Susan H.C. Tai and David K.C. Ng, (2010), Corporate entrepreneurship of IJVs in China, Management Research Review, Vol. 33 No. 1, pp. 6-22

Marlow, S (2009), Challenging the ‘myth’ of the under-performing female entrepreneur, Enterprising Matters, E-Magazine, Spring, available at http://www.isbe.org.uk

Metts Glenn A. (2007). Measuring the Effectiveness of Managerial Action in SMEs. Management Research New. Vol 30. No.12. pp. 892-914.

Odd-Helge Fjeldstad, Ivar Kolstad, Knut Nygaard, (2006), Bribes, taxes and regulations: Business constraints for micro enterprises in Tanzania, Working paper, 2006: 2.

Ojeda-Gomez, Julieta, and Simpson, Mike, Koh, S.C. Lenny, Padmore, Jo. (2007), Achieving competitive advantage in the Mexican footwear industry, Benchmarking: An International Journal, Vol. 14 Iss: 3 pp. 289 – 305.

Porter, M. (1985), Competitive Advantage: Creating and Sustaining Superior Performance, Free Press, New York, NY.

Porter, M.E. (1990), The Competitive Advantage of Nations, The Free Press, New York, NY.

Prajogo, D.I. and Sohal, A.S. (2001), TQM and innovation: a literature review and research framework, Technovation, Vol. 21 No. 9, pp. 539-58.

Prajogo Daniel I., (2007), The relationship between competitive strategies and product quality, Industrial Management & Data Systems, Vol. 107 No. 1, pp. 69-83.

Santos Maria, (2011), CSR in SMEs: strategies, practices, motivations and obstacles, Social Responsibility Journal, Vol. 7 Iss: 3 pp. 490 – 508

Saravanan Ajitha , Prashant Gupta and Shambhu Ghatak, (2008), SME scenario around the world, available at http://eindia2007.blogspot.com/2008/07/sme-scenario-around-world.html.

Sharma B., (2004), Marketing strategy, contextual factors and performance An investigation of their relationship, Marketing Intelligence & Planning, Vol. 22 No. 2, pp. 128-143

Singh Rajesh K., Garg Suresh K, and Deshmukh, S.G. (2009), The competitiveness of SMEs in a globalized economy: Observations from China and India, Management Research Review, Vol. 33 Iss: 1 pp. 54 - 65

Tambunan Tulus Tahi Hamonangan, (2011), Development of small and medium enterprises in a developing country The Indonesian case, Journal of Enterprising Communities: People and Places in the Global Economy Vol. 5 No. 1, pp. 68-82.

Wang Wei and Chang Peter P., (2009), Entrepreneurship and strategy in China: why “Porter’s five forces” may not be, Journal of Chinese Entrepreneurship, Vol. 1 No. 1, pp. 53-64

Yasa Kerti, N.N., Jawas Abdullah, Sukaatmadja P.G., Sribudhi Kembar, Marhaeni A.A.N., (2013), SME performance improvement and its effect on the poverty reduction in Bali, International Jurnal of Business Management Invention, Vol. 2, Issue 4, pp.01-12.




DOI: https://doi.org/10.21776/ub.apmba.2014.003.01.2

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.