Analyzing the drivers of sustainable value creation, partnership strategies, and their impact on business competitive advantages of small & medium enterprises: a PLS-model

Authors

DOI:

https://doi.org/10.15587/1729-4061.2021.228864

Keywords:

sustainable, value creation, partnership strategy, competitiveness, small and medium enterprises

Abstract

Sustainable manufacturing is a critical phenomenon in the process of creating sustainable value. This is a way to increase innovation and resource quality. On the other hand, the partnership strategy is an important factor in efforts to improve company performance. The involvement of the partnership strategy is one of the factors that strengthen the achievement of sustainable values. Furthermore, this affects the sustainability of a manufacturing company's competitiveness, including Small and Medium Enterprises (SMEs). In this study, we focus on creating sustainable value and the role of partnership strategies in improving the business performance of SMEs engaged in the metal manufacturing industry. The Partial Least Squares (PLS) approach to Structural Equation Modeling (SEM) is used to evaluate relationships and effects based on survey data from small and medium industries. The results show that the creation of sustainable value, including products, processes, production, equipment, organization, and human values, has a significant impact (β=0.522; ρ<0.001) on increasing the competitiveness of small and medium enterprises. The effect of sustainable value creation on sustainable competitiveness is fully moderated by the partnership strategy (β=0.179; ρ=0.03), especially in the technology & equipment, and human resources. Apart from being a moderating variable, the partnership strategy has also been shown to significantly act as a partial mediating variable (β=0.135; ρ<0.05) for sustainable value creation in enhancing competitiveness. The partnership strategy's simultaneous involvement proves that the partnership strategy plays an important role in value creation to increase the competitiveness of sustainable manufacturing SMEs

Supporting Agency

  • The Directorate of Research and Community Service, Directorate General of Research and Development Strengthening, Ministry of Education and Culture of the Republic of Indonesia; Brawijaya University, Department of Mechanical Engineering; Institute Technology Adhi Tama Surabaya, Department of Industrial Engineering. The financial support from the Endowment Fund for Education (LPDP) of the Ministry of Finance of the Republic of Indonesia in which its Excellence Scholarship for Indonesian Lecturers–Domestic Program (BUDI-DN) with contract number PRJ-386/LPDP.4/2019.

Author Biographies

Ni Luh Putu Hariastuti, Ni Luh Putu Hariastuti; Adhi Tama Institute of Technology Surabaya

Doctoral Student in Mechanical Engineering

Department of Mechanical Engineering

Department of Industrial Engineering

Pratikto Pratikto, Brawijaya University

Professor of Mechanical Engineering

Departement of Mechanical Engineering

Purnomo Budi Santoso, Brawijaya University

PhD

Departement of Industrial Engineering

Ishardita Pambudi Tama, Brawijaya University

PhD

Departement of Industrial Engineering

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Published

2021-04-30

How to Cite

Hariastuti, N. L. P., Pratikto, P. ., Santoso, P. B., & Tama, I. P. (2021). Analyzing the drivers of sustainable value creation, partnership strategies, and their impact on business competitive advantages of small &amp; medium enterprises: a PLS-model . Eastern-European Journal of Enterprise Technologies, 2(13 (110), 55–66. https://doi.org/10.15587/1729-4061.2021.228864

Issue

Vol. 2 No. 13 (110) (2021): Transfer of technologies: industry, energy, nanotechnology

Section

Transfer of technologies: industry, energy, nanotechnology

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Copyright (c) 2021 Ni Luh Putu Hariastuti, Pratikto Pratikto, Purnomo Budi Santoso, Ishardita Pambudi Tama

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