The Influence of Cost Leadership Strategy and Dynamic Capabilities on the Financial Performance of SMEs with Competitive Advantage as a Mediating Variable in Gowa Regency

Keywords

Cost Leadership Strategy
Dynamic Capabilities
Financial Performance
Competitive Advantage

How to Cite

The Influence of Cost Leadership Strategy and Dynamic Capabilities on the Financial Performance of SMEs with Competitive Advantage as a Mediating Variable in Gowa Regency. (2024). International Collaboration Conference on Islamic Economics, 2(1). https://conference.apseii.id/index.php/ICCEIS/article/view/112

Abstract

The research aims to examine the influence of Cost Leadership Strategy and Dynamic Capabilities on the Financial Performance of SMEs with Competitive Advantage as a Mediating Variable in Gowa Regency. This research employs a quantitative approach with an associative research type. The data source used in this study is primary data collected through the distribution of questionnaires. The sampling technique used in this research is purposive sampling. The sample in this study consists of SMEs operating in Gowa Regency that have been in operation for at least one year and belong to the food and beverage as well as fashion sectors. The sample size was determined using the Hair formula, resulting in a total of 170 SMEs as respondents. Data processing was conducted using SmartPLS (Partial Least Square) version 3.0. The results of this study indicate that the cost leadership strategy has a positive and significant effect on competitive advantage, dynamic capabilities have a positive and significant effect on competitive advantage, the cost leadership strategy has a positive and significant effect on the financial performance of SMEs, dynamic capabilities have a positive and significant effect on the financial performance of SMEs, competitive advantage has a positive and significant effect on the financial performance of SMEs, competitive advantage mediates the effect of the cost leadership strategy on the financial performance of SMEs, and competitive advantage mediates the effect of dynamic capabilities on the financial performance of SMEs.

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