SMEs Craft Industry Application of Resource Based View: Capabilities Role of SMEs Performance

This study examines whether Resource Based View (RBV) theory can be applied in SMEs sector. Superior capabilities are key determinants for sustainable competitive advantage. Not only big firms, but also SMEs need to find what capabilities that determine their competitiveness. This study focused on t...

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Bibliographic Details
Published in:Review of Integrative Business and Economics Research 2019-01, Vol.8, p.423-440
Main Author: Roostika, Ratna
Format: Article
Language:English
Subjects:
Business competition
Competition
Competitive advantage
Creative industries
Entrepreneurship
GDP
Gross Domestic Product
Industry analysis
Innovations
Intangible assets
Marketing
R&D
Research & development
Small & medium sized enterprises-SME
Strategic management
Studies
Sustainability
Tourism
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Summary:This study examines whether Resource Based View (RBV) theory can be applied in SMEs sector. Superior capabilities are key determinants for sustainable competitive advantage. Not only big firms, but also SMEs need to find what capabilities that determine their competitiveness. This study focused on the internal capabilities of SMEs that may explain their performance. Internal capabilities are translated into innovation, marketing, and learning capabilities. Using survey method collected from SMEs owners/managers, this research examines internal capabilities and performance relationships. Using PLS-SEM, the study revealed that innovation, marketing and learning capabilities are significantly influence SMEs performance. In addition, marketing capability also positively influence innovation capability. This research provides empirical finding that capabilities are also applicable to SMEs in emerging countries. Based on the findings from this study, RBV approach can be used to identify capabilities that determine SMEs performance. With capabilities, SMEs may sustain their competitive advantage.
ISSN:2414-6722
2304-1013