Improving performance of small and medium-sized enterprises of processed food through competitive strategy, industry environment, innovation capability, and macroeconomic factors

Author

Taneo, S.Y.M., Setyaningsih, Y., Lindawati, A.S.L.

© 2017, ASERS Publishing House. All rights reserved. Small and medium-sized enterprises (SMEs) processed foods play a major role in the national economy but its performance is still low. The poor performance is due to many factors, but research results are still partial. This study fills the gap, with the aim of analyzing the influence of the industry environment, innovation capabilities, and macroeconomic factors on competitive strategy and the performance of SMEs of processed foods in Malang, Indonesia. Data were collected using a questionnaire of 65 SMEs of processed foods then analyzed using WarpPLS software version 5.0. The study found that the competitive strategy positively influences the performance of SMEs processed foods and competitive strategy is positively influenced by the capabilities of innovation and macroeconomic factors. Industry environment does not significantly affect the competitive strategy and macroeconomic factors do not significantly affect the performance of SMEs of processed foods.

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