Competitive Advantage Leverage Determinants Study on Small Enterprises Managed by Women in Banten Province, Indonesia

10.2478/bjlp-2022-002099

Abstract

The era of digital technology supported by the infrastructure of the industrial revolution 4.0 facing health issues during the Covid-19 pandemic requires small businesses to build a competitive advantage.  The purpose of this study examines the relationship between knowledge management capabilities, entrepreneurial orientation, organizational agility, competitive action, and competitive advantage. In the Indonesian province of Banten, female business owners conducted this study on small enterprises. a quantitative approach to the explanatory survey method. The information was gathered via questionnaires as part of a survey on small enterprises run by women who are members of the Indonesian Muslim Women's Association (IPEMI) and the Indonesian Women Entrepreneurs Association (IWAPI). The data were analyzed descriptively-inferentially by structural equation modeling-partial least squares (SEM-PLS) analysis. The results showed that competitive advantage was determined by knowledge management capabilities, entrepreneurial orientation, organizational agility, and simultaneous competitive action, although knowledge management capabilities and entrepreneurial orientation were partially positive, but not significant. The contribution of this research is empirical proof for academics and practitioners, especially in decision-making in empowering women entrepreneurs in Banten province, and Indonesia in general. Recommendations for policymakers and makers focus more on providing training and mentoring small businesses and other support so that small businesses have a competitive advantage with unique characteristics; and providing enlightenment in the field of entrepreneurship, both strategically in the process of capacity development and the process of entrepreneurial action typical of building a theory of the creation of resilient entrepreneurs.