Achieving MSMEs business performances by innovation and value chain through competitive advantages

Abstract

Based on data from CNBC Indonesia (2019) the fashion industry has recently become a lucrative industry in Indonesia because it’s growth always increasing, opposite to that the product fashion made by SMEs in Indonesia is experiencing a trend of decreasing demand in its business, the number of competing products from developed countries whose prices are lower and more trendy in terms of function and appearance makes consumers prefer mass-produced products, one proof are the fashion center in the city of Bandung that been decreasing in demand for last three year, declining in public purchasing power is one of the causes of MSME products experiencing a decrease in demand, it is felt by most MSME entrepreneurs starting in 2016 until now. This is consistent with the results of research from BPS that at in year 2017 that 40% of the population is under pressure or crisis and ensures low purchasing power, innovation strategies, and product value are needed to be able to compete with cheap but high-quality products in the market in order to remain competitive in the market.

Antecedents of Competitive Advantage and Its Consequences on Business Performance

“…This will allow them to present better products than their competitors (D. Singh et al, 2018;Teguh et al, 2021). Quality products remain the best choice in the market environment, so MSMEs must always present quality products to have a competitive advantage over their competitors (Hendra & Hermawan, 2022;Utomo et al, 2022). MSMES owners must leverage available resources to provide quality products to customers, which will ensure a competitive advantage.…”

Identification of Human Resource Management Best Practices in the MSME Sector

“…Further discoveries by Malshe et al, (2017) demonstrate that the Sales-advertising connection point (SMI) is associated with deals and showcasing so MSMEs can effectively create and execute proper promoting methodologies. While specialists note different components that can help the capacity of advertisers to accomplish necessary and functional arrangements with the business power to drive fruitful system execution the bits of knowledge gathered from existing examination are of restricted utility for some associations (Utomo et al, 2022). Specifically, given the predominance of SMI research zeroing in on regular authoritative settings, this region is principally obscure concerning how advertisers in small and medium ventures (SMEs) can accomplish a necessary and functional arrangement with their deals peers.…”

Analysis of Knowledge and Implementation of Business Intelligence Solutions in Romanian SMEs

“…Other researchers state that other benefits offered by business intelligence are: saving time to find specific information, in addition to generating graphs and indicators for managerial knowledge (Srivastava and Venkataraman, 2022). In addition, with the information entered into the database by each department, administrators can determine which are the weaknesses or critical points that generate higher expenses in order to apply appropriate strategies to reduce expenses/costs (Mehanović and Durmić, 2022) and also decide on effective marketing strategies (Utomo, et al, 2022). It helps to stipulate realistic goals by comparing historical and current financial results or also by comparing the results of similar businesses.…”