Effect Of Resource-Based View Strategy And Entrepreneurship Orientation On Competitive Advantages Of MSMEs (Case Studies On Rattan Crafts In Medan)

by ADMIN 148 views

Effect of Resource-Based View Strategy and Entrepreneurship Orientation on Competitive Advantages of MSMEs: Case Studies on Rattan Crafts in Medan

Introduction

In the business world, especially in the micro, small and medium business sector (MSME), the right strategy can be the key to achieving competitive advantage. This research focuses on industrial cooperatives and rattan crafts in Medan, which involves 30 rattan craftsmen as respondents. Through the primary data collection method conducted by distributing questionnaires, this study aims to analyze the influence between the resource-based view strategy and entrepreneurial orientation on the competitive advantage of the cooperative members. The sampling method used is a saturated sampling technique, where the whole population is used as a sample.

The Importance of Strategic Planning in MSMEs

Strategic planning is crucial for MSMEs to achieve competitive advantage in the market. A well-planned strategy can help businesses to identify and capitalize on opportunities, manage risks, and stay ahead of competitors. In the context of MSMEs, strategic planning can be particularly challenging due to limited resources and expertise. However, with the right strategy, MSMEs can overcome these challenges and achieve significant growth and success.

Resource-Based View Strategy

The Resource-Based View (RBV) strategy emphasizes the importance of assets and resources possessed by an organization in achieving competitive advantage. In the context of industrial cooperatives and rattan crafts, the intended resources can be in the form of craftsmen, the uniqueness of the product, and the distribution network that is built. By utilizing this resource optimally, rattan craftsmen are able to create products that are not only attractive but also of high quality. This will certainly increase competitiveness in the market, especially in dealing with similar products from competitors.

Key Components of Resource-Based View Strategy

The key components of the Resource-Based View strategy include:

  • Human Resources: The skills, knowledge, and experience of craftsmen are critical in creating high-quality products.
  • Product Uniqueness: The uniqueness of the product can be a key differentiator in the market, making it more attractive to customers.
  • Distribution Network: A well-established distribution network can help to reach a wider market and increase sales.

Entrepreneurship Orientation

On the other hand, entrepreneurial orientation refers to the attitudes and approaches taken by the craftsmen to identify opportunities, take risks, and innovate. Rattan craftsmen who have high entrepreneurial orientation tend to be more proactive in finding new ways to increase production, reach a wider market, and adapt to changes in consumers. Thus, entrepreneurship orientation not only contributes to business growth directly, but also helps in building resilience and business sustainability in the midst of fierce competition.

Key Components of Entrepreneurship Orientation

The key components of entrepreneurship orientation include:

  • Opportunity Identification: The ability to identify new opportunities and capitalize on them.
  • Risk-Taking: The willingness to take calculated risks to achieve business growth.
  • Innovation: The ability to innovate and adapt to changes in the market.

Conclusion

Overall, this research underlines the importance of a combination of resource-based view strategies and entrepreneurial orientation in creating competitive advantage for MSMEs, especially in the rattan craft sector. By utilizing existing resources and developing entrepreneurial attitudes, rattan craftsmen in Medan can not only increase competitiveness, but also contribute to more sustainable local economic development. Implementation of the right strategy is expected to improve product quality and expand market share, so that it brings long-term benefits to the sustainability of their business.

Recommendations

Based on the findings of this study, the following recommendations are made:

  • MSMEs should adopt a resource-based view strategy to optimize their resources and create competitive advantage.
  • Entrepreneurial orientation should be developed to increase the ability of MSMEs to identify opportunities, take risks, and innovate.
  • Strategic planning should be implemented to ensure that MSMEs have a clear direction and vision for their business.

Limitations of the Study

This study has several limitations, including:

  • Small sample size: The study only involved 30 rattan craftsmen as respondents, which may not be representative of the larger population.
  • Limited scope: The study only focused on the rattan craft sector in Medan, which may not be generalizable to other industries or locations.

Future Research Directions

Future research should aim to:

  • Investigate the impact of resource-based view strategy and entrepreneurial orientation on other industries.
  • Examine the role of strategic planning in achieving competitive advantage.
  • Develop a more comprehensive model of competitive advantage.

References

  • Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
  • Covin, J. G., & Slevin, D. P. (1989). Strategic management of small firms in hostile and benign environments. Strategic Management Journal, 10(1), 75-87.
  • Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management Science, 29(7), 770-791.
    Frequently Asked Questions (FAQs) on Resource-Based View Strategy and Entrepreneurship Orientation

Q: What is the Resource-Based View (RBV) strategy?

A: The Resource-Based View (RBV) strategy is a business approach that emphasizes the importance of assets and resources possessed by an organization in achieving competitive advantage. It focuses on optimizing the use of resources to create unique and valuable products or services.

Q: What are the key components of the Resource-Based View strategy?

A: The key components of the Resource-Based View strategy include:

  • Human Resources: The skills, knowledge, and experience of employees are critical in creating high-quality products.
  • Product Uniqueness: The uniqueness of the product can be a key differentiator in the market, making it more attractive to customers.
  • Distribution Network: A well-established distribution network can help to reach a wider market and increase sales.

Q: What is Entrepreneurship Orientation?

A: Entrepreneurship Orientation is a business approach that emphasizes the attitudes and approaches taken by entrepreneurs to identify opportunities, take risks, and innovate. It focuses on developing entrepreneurial attitudes and behaviors to achieve business growth and success.

Q: What are the key components of Entrepreneurship Orientation?

A: The key components of Entrepreneurship Orientation include:

  • Opportunity Identification: The ability to identify new opportunities and capitalize on them.
  • Risk-Taking: The willingness to take calculated risks to achieve business growth.
  • Innovation: The ability to innovate and adapt to changes in the market.

Q: How can MSMEs benefit from the Resource-Based View strategy and Entrepreneurship Orientation?

A: MSMEs can benefit from the Resource-Based View strategy and Entrepreneurship Orientation by:

  • Increasing competitiveness in the market
  • Improving product quality and uniqueness
  • Expanding market share and reach
  • Building resilience and business sustainability

Q: What are the limitations of the Resource-Based View strategy and Entrepreneurship Orientation?

A: The limitations of the Resource-Based View strategy and Entrepreneurship Orientation include:

  • Small sample size: The study only involved a small number of respondents, which may not be representative of the larger population.
  • Limited scope: The study only focused on the rattan craft sector in Medan, which may not be generalizable to other industries or locations.

Q: What are the future research directions for the Resource-Based View strategy and Entrepreneurship Orientation?

A: Future research should aim to:

  • Investigate the impact of the Resource-Based View strategy and Entrepreneurship Orientation on other industries
  • Examine the role of strategic planning in achieving competitive advantage
  • Develop a more comprehensive model of competitive advantage

Q: How can MSMEs implement the Resource-Based View strategy and Entrepreneurship Orientation in their business?

A: MSMEs can implement the Resource-Based View strategy and Entrepreneurship Orientation by:

  • Conducting a thorough analysis of their resources and capabilities
  • Developing a clear and concise business strategy
  • Encouraging entrepreneurial attitudes and behaviors among employees
  • Continuously monitoring and evaluating their performance and making adjustments as needed.

Q: What are the benefits of implementing the Resource-Based View strategy and Entrepreneurship Orientation in MSMEs?

A: The benefits of implementing the Resource-Based View strategy and Entrepreneurship Orientation in MSMEs include:

  • Increased competitiveness in the market
  • Improved product quality and uniqueness
  • Expanded market share and reach
  • Built resilience and business sustainability

Q: What are the challenges of implementing the Resource-Based View strategy and Entrepreneurship Orientation in MSMEs?

A: The challenges of implementing the Resource-Based View strategy and Entrepreneurship Orientation in MSMEs include:

  • Limited resources and expertise
  • Difficulty in identifying and capitalizing on opportunities
  • Risk of failure and uncertainty
  • Difficulty in measuring and evaluating performance.