The Influence of Internal Factors on Business Performance: A Resources Based View of Mushroom Sme in Indonesia

Abstract

Mushrooms are one of the leading agroindustry products. This is not separated from the fact that people will be more aware of consuming mushrooms for health purposes. The high demand causes the flourishing of the mushroom processing industry, including in the Malang area. Because of improving the quality of mushroom products, MSME mushroom processors need to improve business performance. Superior business performance can be achieved with successful competitive advantage. Competitive advantage are factors that a company must have in order to succeed in business. The basic source of competition Competitive advantage is resource. There is a theory from Barney (1991) that is used in determining strategic resources to achieve competitive competitiveness called Resource-Based View (RBV). Therefore, the purpose of this study is to determine (1) the influence of tangibles resources on competitive strategies, (2) intangibles resources on competitive strategies, (3) the influence of capabilities on competitive strategies, and (4) competitive strategy strategies on support company. The research method used is quantitative and inferential descriptive analysis (SEM) based on Partial Least Square (PLS). The results showed that based on the validity and reliability test, each variable met the valid criteria (loading factor value ≥ 0.3) and reliable (Cronbach alpha value ≥ 0.60).

Does law as resource bring a competitive advantage to companies?

“…Even in the most current research, this way of looking at resources as the main source of competitive advantage continues to be the starting point for studying the importance of resources in companies (Ardaneswari et al , 2020). This link between resources and the search for competitive advantage is increasingly pointed out as one of the main strategies for companies to succeed and Mulyono (2013) even mentions that the core of the current RBV theory is even the competitive advantage, being it the way to measure the importance of resources in companies.…”

“…This study emphasises the need for companies to know how to organise themselves to use the differentiated resources in their favour. Ardaneswari et al (2020) also concluded that tangible resources and the company's ability to manage resources influence achieving competitive advantage. In the same research, they could not find the importance of intangible resources.…”