Competitive Advantage as a Mediator for Sustainable Business Performance in MSMEs of Makassar City

Muhammad Arif Ahsan ()
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Muhammad Arif Ahsan: Hasanuddin University, Master of Management Student, Faculty of Economics and Business

A chapter in Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024), 2025, pp 613-627 from Springer

Abstract: Abstract This study aims to analyze the role of entrepreneurial orientation and sustainable business strategy in shaping competitive advantage and how competitive advantage mediates the relationship between these factors and sustainable business performance in MSMEs in Makassar City. Given the growing importance of sustainability in business, understanding how entrepreneurial and strategic factors contribute to long-term success is crucial. This study employs a quantitative approach, utilizing the Structural Equation Modeling-Partial Least Square (SEM-PLS) technique to analyze data from 257 MSMEs. The findings indicate that both entrepreneurial orientation and sustainable business strategy have a positive and significant impact on competitive advantage. Furthermore, competitive advantage plays a crucial mediating role in strengthening the relationship between entrepreneurial orientation and sustainable business strategy with sustainable business performance. These results highlight the strategic importance of competitive advantage in enhancing the sustainability of MSMEs. This research contributes to the theoretical and practical understanding of entrepreneurship and sustainability strategies, providing valuable insights for MSMEs in Indonesia to develop competitive and sustainable business practices. By emphasizing the role of strategic planning and entrepreneurial capabilities, this study offers practical implications for policymakers, business owners, and researchers in fostering a more resilient and competitive MSME sector.

Keywords: Entrepreneurial Orientation; Sustainable Business Strategy; Competitive Advantage; Sustainable Business Performance; SMEs (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-758-8_52

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DOI: 10.2991/978-94-6463-758-8_52

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