Developing Sustainable Competitive Advantage Through Extended RBV Perspective On Batik SMEs

Introduction/Main Objectives: This research examines the effect of extended RBV perspective (social capital, intellectual capital, entrepreneurial orientation) and the instrumental stakeholder approach (EnSi, stakeholder salience, in ties group) on the performance of batik SMEs. The Instrumental Stakeholder Approach is something that needs to be studied, considering that the relationship with stakeholders or communities around SMEs is also important and supports SME performance. With the term giving back to the community, this approach is one way to survive and achieve sustainability. Background Problems: In developing sustainable competitive advantages, RBV framework, focuses on how the company can utilize internal resource competencies. Meanwhile, the Instrumental Stakeholder Approach states that companies are social entities whose activities and performance can be influenced by various stakeholders. Novelty: Existing research focuses more on the RBV perspective. There are still few studies that measure the extended RBV perspective and Instrumental Stakeholder Approach to see it affects the performance of SMEs.. Research Methods: The research was conducted on 42 batik SME owners in Tanjung Bumi District, Regency Bangkalan. Data analysis was carried out using multiple regression analysis. Finding/Results: the extended RBV and the instrumental stakeholder approach (EnSi, stakeholder salience, in ties group) have positive effects on the performance of batik SMEs. Intangible assets of SMEs are things that can support SMEs performance. Conclusion: Intangible assets from SMEs are things that can support SME performance. This study only focuses on internal factors of SMEs, so that in the future it can test the influence of factors that are mainly related to the readiness of SMEs in digitalization and technology adoption.