Proceedings of the First International Conference of Economics, Business & Entrepreneurship, ICEBE 2020, 1st October 2020, Tangerang, Indonesia

Research Article

The Impact of Export Capabilities and Competitive Advantage on SME’s International Performance

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  • @INPROCEEDINGS{10.4108/eai.1-10-2020.2305561,
        author={Donn  Sandi and Budi  Susanto and Rismi  Juliadi},
        title={The Impact of Export Capabilities and Competitive Advantage on SME’s International Performance},
        proceedings={Proceedings of the First International Conference of Economics, Business \& Entrepreneurship, ICEBE 2020, 1st October 2020, Tangerang, Indonesia},
        publisher={EAI},
        proceedings_a={ICEBE},
        year={2021},
        month={4},
        keywords={international performance competitive advantage export capabilities market intelligence product innovation marketing communication pricing capability small and medium enterprises},
        doi={10.4108/eai.1-10-2020.2305561}
    }
    
  • Donn Sandi
    Budi Susanto
    Rismi Juliadi
    Year: 2021
    The Impact of Export Capabilities and Competitive Advantage on SME’s International Performance
    ICEBE
    EAI
    DOI: 10.4108/eai.1-10-2020.2305561
Donn Sandi1,*, Budi Susanto1, Rismi Juliadi1
  • 1: Universitas Multimedia Nusantara
*Contact email: donn.rithalna@student.umn.ac.id

Abstract

Small and Medium Enterprises (SMEs) are very influential to the Indonesian economy regarding their contribution to the national GDP and employment. This research aims to examine the impact of export capabilities and competitive advantage to SMEs’ international performance. There is still an inconsistency among previous research on capabilities-competitive advantage-performance relations. This research would confirm which capabilities are the most impactful to SME’s international performance, and examines whether competitive advantage has a mediating role between capabilities and performance. This research uses the quantitative method with 55 respondents from Indonesia, and then the analysis uses PLS-SEM with SmartPLS software. The product innovation does not influence the competitive advantage. Market intelligence, marketing communication, and pricing influence the competitive advantage. Also, the competitive advantage influences international performance but does not have the mediate role between the export capabilities and international performance. Between export capabilities: market communication, pricing, and market intelligence are the most impactful to SMEs’ international performance. SMEs leaders should focus on the resources on those capabilities, while government and academic researchers still support on product innovation.