The Effect of Business Strategy on Business Performance Mediated by Competitive Advantage (Case Study on SMEs Gudeg WJL Community)

Abstract

This research aims to analyze the direct business strategy on business performance, as well as its through the mediation of competitive advantage in study case of the owner that join in Gudeg WJL SME Community (not the real name). This study falls under quantitative research, using census sampling as the chosen method. The population consists all of owner who joined in Gudeg WJL SME Communitiy, with total of 50 people. Data collection was conducted in November till December 2023 through survey with questionaire. SmartPLS 3.2.9 was used as the data analysis method, and the test results indicate that all four variables (two predictor and one mediators) effectively explain the criterion construct. The study found that business strategy has a positive and significant direct influence on business performance and competitive advantage. Then, competitive advantage has a positive and significant direct influence on business performance. Lastly, business strategy indirectly influence on business strategy that mediated by competitive advantage with the results is positive and significant too. In conclusion, this research shows that business strategy has a influence on business performance through competitive advantage as a mediator.