Research Article
Intensive Strategy Model and Implications for SME Business Performance
@INPROCEEDINGS{10.4108/eai.13-2-2019.2286508, author={Nizar Alam Hamdani and Sukma Nugraha and Galih Abdul Fatah Maulani}, title={Intensive Strategy Model and Implications for SME Business Performance}, proceedings={Proceedings of the 1st International Conference on Business, Law And Pedagogy, ICBLP 2019, 13-15 February 2019, Sidoarjo, Indonesia}, publisher={EAI}, proceedings_a={ICBLP}, year={2019}, month={10}, keywords={intensive strategy business performance uniqueness innovation}, doi={10.4108/eai.13-2-2019.2286508} }- Nizar Alam Hamdani
Sukma Nugraha
Galih Abdul Fatah Maulani
Year: 2019
Intensive Strategy Model and Implications for SME Business Performance
ICBLP
EAI
DOI: 10.4108/eai.13-2-2019.2286508
Abstract
SMEs can develop if properly managed. Just like big companies, SMEs should implement appropriate strategies to perform well. Using a quantitative approach, this study aims at developing an intensive strategy model through market penetration, market development, and product development and examining its implications for SME business performance. The samples were 57 SMEs in Indonesia selected using a simple random sampling technique. Data analysis was performed using SEM-PLS. The results revealed that external factors have an impact on product development and market development, and internal factors have a major impact on market penetration. The intensive strategy has an impact on the performance of SMEs in such a way that the better the implementation of intensive strategy, the better the performance of SMEs. It was also revealed that it is necessary for SMEs to demonstrate a capability to seize business opportunities, to demonstrate uniqueness, and to be innovative.