Business Performance and Competitive Advantage: Multi Perspective Analysis of SMEsin Bali

Abstract

The aims of this paper are to analyze business performance and competitiveness of SMEs in Bali from the perspective of human resource competency and market orientation. This research was conducted with 100 owners of SMEs of wood craft in Bali. The data were collected through interview, observation, questionnaire, and documentation, then analyzed using the following techniques: (1) descriptive statistic; and (2) structure equation models. The results of the analysis show that: (1) the business performance and competitiveness of SMEs are categorized as fair; (2) Human resource competency has a positive and significant effect on market orientation and business performance of SMEs; (3) business performance has a positive and significant effect on the competitiveness of SMEs; (4) market orientation has a positive and significant effect on the business performance and competitiveness of SMEs. The relevant suggestions for this study are (1) improving HR managerial skills by participating in training; (2) improving product quality by minimizing costs through innovation; (3) Empowering the government to play a role in helping SMEs to open market access.