Investigating the Relationship between Competitive Advantage, Promotion, and Management Accounting on Company Performance: A Study on Nglarisi MSME Assosiation Members in Yogyakarta
DOI:
https://doi.org/10.37134/ibej.Vol17.1.8.2024Keywords:
Competitive Advantages, Promotion, Management Accounting, Company Performance, Nglarisi Jogja MSMEs Partner NetworkAbstract
Micro, Small, and medium Enterprises (MSMEs) play a crucial role in driving the global economy, contributing to employment generation, innovation, and sustainable development. This research aims to comprehensively understand the relantionships between competitive advantages, promotion strategies, and management accounting practices within the context of members of the Nglarisi MSME Assosiation in Yogyakarta. The study employs a quantitative research design, using a structured questionnaire distributed to MSMEs owners or founders within the network. The sample size of 40 respondents was determined using purposive sampling. The collected data analyzed using multiple linear regression analysis to examine the relationships between the predictors and company performance. The analysis reveals that competitive advantages and promotion have significant associations with company performance. While a business should leverage on competitive advantages, over reliance on them may hinder long-term success. Effective promotion strategies positively impact company performance by building brand awarness and attracting customers. However, the analysis did not find a statistically significant relationship betweem management accounting and company performance.
Downloads
References
Arof, H. (2013). The effect of cost leadership strategy on firm performance: Empirical evidence from Malaysian industries. Procedia Economics and Finance, 7, 174-181.
Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
Bhuian, S. N., Menguc, B., & Bell, S. J. (2005). Just entrepreneurial enough: The moderating effect of entrepreneurship on the relationship between market orientation and performance. Journal of Business Research, 58(1), 9-17.
Chenhall, R. H., & Langfield-Smith, K. (2007). Multiple perspectives of performance measures. European Management Journal, 25(4), 266-282.
Ghemawat, P., & Reiche, S. (2011). Globalization, the rise of emerging economies, and performance: A review of the empirical literature. Academy of Management Perspectives, 25(4), 18-40.
International Finance Corporation (IFC). (2022). MSMEs: Creating Jobs and Opportunities. https://www.ifc.org/wps/wcm/connect/news_ext_content/ifc_external_corporate_site/ news+and+events/news/ifc-micro-small-medium-enterprises
Ittner, C. D., & Larcker, D. F. (2003). Coming up short on nonfinancial performance measurement. Harvard Business Review, 81(11), 88-95.
Kaur, P., Kaur, N., & Kanojia, P. (2021). Firm innovation and access to finance: Firm-level evidence from india. Journal of Financial Economic Policy, 14(1), 93-112. https://doi.org/10.1108/jfep-07-2020-0161
Kesner, I. F. (1987). Directors' characteristics and committee membership: An investigation of type, occupation, tenure, and gender. Academy of Management Journal, 30(4), 489-503.
Kotler, P., & Keller, K. L. (2016). Marketing management. Pearson.
Kuivalainen, O., Sundqvist, S., & Servais, P. (2007). Firms’ use of alternative international market entry modes. International Marketing Review, 24(4), 411-432.
Lasiyono, U. and Anto, S. K. (2021). Use of accounting information system, accounting standards of small and medium entitles in smalll and medium micro businessesin mojokerto regency, east java province. Journal of Economics and Technology Research, 2(3), p1. https://doi.org/10.22158/jetr.v2n3p1
Lee, J. Y., & Tsai, H. T. (2005). The effects of differentiation and cost leadership strategies on firm performance: A longitudinal study. Journal of Business Research, 58(6), 694-701.
Maiti, M. (2018). Scope for alternative avenues to promote financial access to msmes in developing nation evidence from india. International Journal of Law and Management, 60(5), 1210-1222. https://doi.org/10.1108/ijlma-06-2017-0141
Martin, X. (2014). Institutional advantage. Global Strategy Journal, 4(1), 55-69. https://doi.org/10.1111/j.2042-5805.2013.01072.x
Marwa, N. (2014). Micro, small and medium enterprises’ external financing challenges: the role of formal financial institutions and development finance intervention in tanzania. International Journal of Trade, Economics and Finance, 5(3), 230-234. https://doi.org/10.7763/ijtef.2014.v5.376
Mendonca, T. D. and Zhou, Y. (2019). Environmental performance, customer satisfaction, and profitability: a study among large u.s. companies. Sustainability, 11(19), 5418. https://doi.org/10.3390/su11195418
Nkundabanyanga, S. K., Akankunda, B., Nalukenge, I., & Tusiime, I. (2017). The impact of financial management practices and competitive advantage on the loan performance of mfis. International Journal of Social Economics, 44(1), 114-131. https://doi.org/10.1108/ijse-05-2014-0104
Organisation for Economic Co-operation and Development (OECD). (2022). SMEs and Entrepreneurship. https://www.oecd.org/cfe/smes/
Ospina, S., Diaz, W. A., & O'Sullivan, J. M. (2002). Negotiating accountability: managerial lessons from identity-based nonprofit organizations. Nonprofit and Voluntary Sector Quarterly, 31(1), 5-31. https://doi.org/10.1177/0899764002311001
Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. Free Press.
Radulovich, L. P. (2002). The impact of formal strategic planning on performance in small organizations: A meta-analysis. Journal of Small Business Management, 40(3), 231-251.
Sigalas, C., Economou, V. P., & Georgopoulos, N. T. (2013). Developing a measure of competitive advantage. Journal of Strategy and Management, 6(4), 320-342. https://doi.org/10.1108/jsma-03-2013-0015
Sugiyono. (2017). Metode Penelitian Bisnis. Bandung: Penerbit Alfabeta.
Wijayanto, A., Dzulkirom, M., & Nuzula, N. (2019). The effect of competitive advantage on financial performance and firm value: evidence from indonesian manufacturing companies. Russian Journal of Agricultural and Socio-Economic Sciences, 85(1), 35-44. https://doi.org/10.18551/rjoas.2019-01.04
Yaprak, A., & Karademir, A. (2010). Market orientation, corporate social responsibility, and performance: Evidence from retailing. Journal of Business Research, 63(3), 246-253.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Eva Yuniarti Utami, Dama Yuninata, Rohmawan Adi Pratama, Diah Pramesti, Rosita Mei Damayanti
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
