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The Competitive Advantage of Furniture SMEs in East Java: The Role of Aggressiveness in Entrepreneurship Orientation

Author

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  • Ardianus Laurens Paulus

    (Management, Faculty of Business, Widya Mandala Surabaya Catholic University, Jalan Dinoyo 42-44, Surabaya 60265, East Java, Indonesia)

  • Yustinus Budi Hermanto

    (Faculty of Management, Darma Cendika Catholic University, Jl. DR. Ir. H. Soekarno, No. 201, Surabaya 60117, East Java, Indonesia)

Abstract

This paper analyzes the dimensions of entrepreneurial orientation in Furniture SMEs in East Java, Indonesia, towards competitive advantage. This study uses a quantitative approach with the survey method. This study uses primary data that is self-reported using a self-administered survey by distributing questionnaires directly to 84 owners of small and medium enterprises (SMEs) Furniture in Western East Java, Indonesia. A measurement used the structural equation model (SmartPLS 3.0) to analyze data. Five hypotheses were proposed, and only four had positive significant and positive effects on competitive advantage, that is, the influence of entrepreneurial orientation consisting of proactiveness, innovativeness, aggressiveness, and autonomy. In contrast, the hypothesis related to risk-taking towards the competitive advantage of SMEs Furniture has no positive and significant effect. The findings of this study show that the dominant influence of the entrepreneurial orientation dimension is aggressiveness. The theoretical implication of this research is that furniture business players need to continuously improve their aggressiveness in entrepreneurship according to the theoretical findings in this study, such as introducing innovative products made from local materials and following market trends. This research adds to the theory of aggressiveness in entrepreneurship to encourage innovations that will make industries that use local natural resources more competitively and help government policies. Aggressiveness is required by the furniture business to improve competitiveness for a labor-intensive industry with reliable local content to spur economic growth in Indonesia.

Suggested Citation

  • Ardianus Laurens Paulus & Yustinus Budi Hermanto, 2022. "The Competitive Advantage of Furniture SMEs in East Java: The Role of Aggressiveness in Entrepreneurship Orientation," Economies, MDPI, vol. 10(6), pages 1-11, June.
    • Handle: RePEc:gam:jecomi:v:10:y:2022:i:6:p:139-:d:838554
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    References listed on IDEAS

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    1. Indy Bernoster & Jinia Mukerjee & Roy Thurik, 2020. "The role of affect in entrepreneurial orientation," Small Business Economics, Springer, vol. 54(1), pages 235-256, January.
    2. Junghyun Yoon & Ki Keun Kim & Alisher Tohirovich Dedahanov, 2018. "The Role of International Entrepreneurial Orientation in Successful Internationalization from the Network Capability Perspective," Sustainability, MDPI, vol. 10(6), pages 1-14, May.
    3. Mohammed R. Yaseen Zeebaree & Rusinah Bt. Siron, 2017. "The Impact of Entrepreneurial Orientation on Competitive Advantage Moderated by Financing Support in SMEs," International Review of Management and Marketing, Econjournals, vol. 7(1), pages 43-52.
    4. Li, Julie Juan & Zhou, Kevin Zheng, 2010. "How foreign firms achieve competitive advantage in the Chinese emerging economy: Managerial ties and market orientation," Journal of Business Research, Elsevier, vol. 63(8), pages 856-862, August.
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    Cited by:

    1. Dr. A. V. More & Dr. Vinit Rakibe, 2023. "Entrepreneurial Orientation and Business Performance: An Empirical Study of SMEs in Nashik District of Maharashtra," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 14(2), pages 01-13, May.

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