Competitive Advantage Based on Intangible Resources of East Java SMEs

Farika Nikmah; Erlangga Andi Sukma; Musthofa Hadi; Candra Wahyu Hidayat

doi:10.55927/fjmr.v5i6.87

Authors

Farika Nikmah Politeknik Negeri Malang
Erlangga Andi Sukma Politeknik Negeri Malang
Musthofa Hadi Politeknik Negeri Malang
Candra Wahyu Hidayat Universitas PGRI Kanjuruhan Malang

DOI:

https://doi.org/10.55927/fjmr.v5i6.87

Keywords:

SMEs, Intangible Resources, Innovation Capital, Human Capital, Customer Capital

Abstract

The primary objective of this study is to identify and analyze the impact of intangible resources on enhancing competitive advantage for SMEs in East Java. Data were obtained from a sample of 300 respondents, who were SME owners, using an online survey with a quantitative approach. This study employed a purposive sampling technique, selecting only individuals who met certain criteria. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to evaluate the collected data. The results indicate that the intangible resources mentioned in this study—innovation capital, human capital, and customer capital—influence the competitive advantage of SMEs in East Java. These findings provide valuable insights for SME owners in East Java regarding the importance of optimizing their intangible resources. Furthermore, this study expands theoretical understanding of the critical role of intangible resources in achieving competitive advantage amidst rapidly changing market dynamics and increasingly fierce competition.

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