Analysis of Advantage Competitive Factors and the Impaction Improving Business Performance of SME in Central Java

Abstract

This study aims to determine the effects of Intangible Assets, Strategic Orientation and Innovation Orientation on Competitive Advantages that have an impact on the performance of SMEs in Central Java. The method of this study was explanatory survey method with a type of decompression-verification study from primary data obtained from various SME groups with a target of 200 SMEs in Central Java that were selected on a quota basis and non-probability sampling from several types of SME groups and using PLS. SEM in analyzing the data of the book. The results of this study indicate that Intangible Assets with Path coefficient (?) = 0.364, P value <0.001 (<? = 0.05), Strategic Orientation with Path coefficient (?) = 0.269 P value <0.001 (<? = 0.05),  and Innovation Orientation with Path coefficient (?) = 0.123 P value <0.038 (<? = 0.05),  have a positive effect on Competitive Advantage with coefficient (?) = 0.475, P value <0.001 (<? = 0.05) which implies on the performance of SMEs.