Innovation Strategy Based on Shiwam Satyam Sundharam to Increase Competitive Advantage in Wood Crafts in Gianyar Regency
https://doi.org/10.35877/454RI.daengku3764
Keywords:
IKM, wooden crafts, shiwam satyam sundharam
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Abstract
Balinese handicraft products are synonymous with soul and art based on local wisdom values that become local knowledge and local skills as a form of originality that is not owned by other regions so that it will be easier for companies to achieve sustainable competitive advantage (Ife, 2002; Mardatillah et al., 2020). Wood handicraft SMEs in Bali Province are known to have a high artistic spirit, creativity and innovation and have their own characteristics or uniqueness. The artistic spirit is passed down from generation to generation and is an integral part of the daily activities of the craftsmen. This research uses quantitative research methods, which are based on the positivism paradigm. The analysis continued at the quantitative analysis stage based on multivariate analysis using structural equation modeling (SEM) based on Partial Least Square (PLS). Problems in the competitive advantage of wood handicraft SMIs in Bali can be seen from their low production value when compared to other existing industries. Bali as a craft center is certainly a large market for consumers both at home and abroad. This of course makes wood handicraft SMIs require a competitive advantage that can be highlighted and become a differentiator with other similar industrial products. This research was conducted on wood handicraft SMIs in Gianyar Regency. This is done because Gianyar is famous for its many wood craftsmen who have a high artistic spirit and creativity. The population of this study was all wood handicraft SMIs in Gianyar Regency which amounted to 476 businesses.
References
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Grant, R. M. (1991). The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation. California Management Review, 33(3).
Gul, F.A., (1991). The effect of management accounting systems and environmental uncertainty on small business manager's performance, Accounting and Business Research.
Haryanto, A. T. (2019). Pemasaran Dan Keunggulan Bersaing (Studi Perusahaan Finance di Wonogiri). Jurnal Perilaku dan Strategi Bisnis, 7(2), 106-114.
Hamel, G., and Prahalad, C. K. (1994). Competing for the future. Harvard business review, 72(4), 122-128.
Hemmati, M., and Hosseini, H. (2016). Effect of IT application on project performance focusing on the mediating role of organizational innovation, knowledge management and organizational capabilities. Engineering, Technology & Applied Science Research, 6(6).
Hoque, A. S. M. M. (2018). The effect of entrepreneurial Orientation on Bangladeshi SME performance: Role of organizational culture. International Journal of Data and Network Science.
Hittmár, Š., Varmus, M., and Lendel, V. (2014). Proposal of model for effective implementation of innovation strategy to business. Procedia - Social and Behavioral Sciences.
Huang, Z., Benyoucef, M., and Dai, S. (2015). The effects of social media on consumer buying intention: An empirical study. Journal of Retailing and Consumer Services.
Jannah, M., Irawati, A., and Purnomo, H. (2019). Pengaruh Orientasi Kewirausahaan dan Inovasi Produk Terhadap Kinerja UMKM Batik Gedog Khas Tuban. Eco-Entrepreneur, 5(1), 33-48
Kazinguvu, N. (2016). Strategic Innovations in Management of Small and Medium Sized Manufacturing Companies in Rwanda. Research Papers in Business Entrepreneurship and Management.
Khan, S. Z., Yang, Q., dan Waheed, A. (2019). Investment in intangible resources and capabilities spurs sustainable competitive advantage and firm performance. Corporate Social Responsibility and Environmental Management, 26(2).
Kocak A, C. A., Oflazoglu. (2017). Market, entrepreneurial, and technology orientations: impact on innovation and firm performance. Management Decision, 55(2).
Kotler, Philip. (2008). Manajemen Pemasaran. PT. Gelora Aksara Pratama, Jakarta.
Kotler, Philip and Armstrong, Gary. 2012. Principles of Marketing. New Jersey: Prentice Hall
Lestari, N. W. N. D., dan Warmika, I. G. K. (2019). Pengaruh orientasi teknologi dan orientasi pasar terhadap kinerja perusahaan (Doctoral dissertation, Udayana University).
Lestari, I., Astuti, M., dan Ridwan, H. (2019). Pengaruh inovasi dan orientasi kewirausahaan terhadap keunggulan bersaing umkm kuliner. Jurnal Riset Manajemen dan Bisnis (JRMB) Fakultas Ekonomi UNIAT, 4(1).
Lestari, S. D., Leon, F. M., Widyastuti, S., Brabo, N. A., dan Putra, A. H. P. K. (2020). Antecedents and consequences of innovation and business strategy on performance and competitive advantage of SMEs. Journal of Asian Finance, Economics and Business, 7(6).
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Mahdi, O.R., Nassar, I.A. and Almsafir, M.K., (2019). Knowledge management processes and sustainable competitive advantage: An empirical examination in private universities. Journal of Business Research.
Meutia, Ismail, T., and Ummi, N. (2017). Improving anticipative learning through entrepreneurial orientation in small to medium size enterprises. European Research Studies Journal, 20(3).
Nuvriasari, A., Wicaksono, G., and Sumiyarsih, S. (2018). Peran Orientasi Pasar, Orientasi Kewirausahaan Dan Strategi Bersaing Terhadap Peningkatan Kinerja Ukm. EKUITAS (Jurnal Ekonomi Dan Keuangan), 19(2).
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Porter, M. E. (1979). HBR. Harvard Business Review.
Peteraf, M. A. 1993. The Cornerstones of Competitive Advantage: A Resource- Based View Strategic Management Journal, 14, 179-191.
Prajogo, D.I., (2016). The strategic fit between innovation strategies and business environment in delivering business performance. International journal of production Economics.
Read, A. (2000). Determinant of sucessful organizational innovation: A review of current research. Journal of Management Practice, 3(1).
Rini, R., Lisnini, L., Maretha, F., dan Pebrianti, Y. (2020). Pengaruh Orientasi Kewirausahaan, Orientasi Pasar Dan Orientasi Pembelajaran Terhadap Keunggulan Bersaing Dan Kinerja Usaha (Studi Pada Usaha Kecil Pengolah Makanan di Kota Palembang). Jurnal Aplikasi Manajemen dan Bisnis, 1(1).
Russell, S.N. and Millar, H.H., (2014). "Exploring the Relationships among Sustainable Manufacturing Practices , Business Performance and Competitive Advantage : Perspectives from a Developing Economy", Journal of Management and Sustainability, 4(3).
Rahmadi, A. N., Jauhari, T., dan Dewandaru, B. (2020). Pengaruh orientasi pasar, inovasi dan orientasi kewirausahaan terhadap keunggulan bersaing pada UKM di jalanan Kota Kediri. Jurnal Ekbis, 21(2).
Schmenner, R. W. (1986). How can service businesses survive and prosper? Sloan Management Review, 27(3).
Seo, Y. W., and Chae, S. W. (2016). Market Dynamics and Innovation Management on Performance in SMEs: Multi-agent Simulation Approach. Procedia Computer Science.
Setyawati, A. (2015). Keunggulan kompetitif dan inovasi (Studi pada umkm sektor industri makanan dan minuman di Bandung Raya). Jurnal Akademika, 13(2).
Sigalas, C. and Economou, V.P., (2013). Revisiting the concept of competitive advantage: Problems and fallacies arising from its conceptualization. Journal of Strategy and Management, 6(1).
Singh, S. K., Chen, J., Del Giudice, M., & El-Kassar, A. N. (2019). Environmental ethics, environmental performance, and competitive advantage: Role of environmental training. Technological Forecasting and Social Change.
Siswati, E., and Alfiansyah, R. (2020). Keunggulan Bersaing Umkm Kuliner Berbasis Inovasi (Studi Pada Umkm Keripik Samiler Kasper Di Sidoarjo). IDEI: Jurnal Ekonomi & Bisnis, 1(2), 84-90.
Suhaeni, T. (2018). Pengaruh strategi inovasi terhadap keunggulan bersaing di industry kreatif (Studi kasus umkm bidang kerajinan tangan di kota Bandung). Jurnal Riset Bisnis dan Investasi, 4(1).
Suharto, I. K. S. (2018). The Influence of Market Orientation and Entrepreneurial Orientation to Competitive Advantage Through Business Innovation: Study on Batik Trusmi Cirebon West Java Province Indonesia. International Review of Management and Marketing, 8(1).
Sumiati. (2015). “Pengaruh Strategi Orientasi Wirausaha Dan Orientasi Pasar Pengaruhnya Terhadap Kinerja Perusahaan UMKM Di Kota Surabaya.” Jurnal Ekonomi & Manajemen, 1(1)
Sunyoto, D. (2014). Dasar-dasar Manajemen Pemasaran, konsep, strategi, dan kasus.
Tian, Y., Wang, Y., Xie, X., Jiao, J., and Jiao, H. (2019). The impact of business- government relations on firms' innovation: Evidence from Chinese manufacturing industry. Technological Forecasting and Social Change.
Tjiptono, F. (2008). Strategi pemasaran.
Wang, C. H. (2019). How organizational green culture influences green performance and competitive advantage: The mediating role of green innovation. Journal of Manufacturing Technology Management.
Wernerfelt. (1984). A resource-based view of the firm. Strategic Management Journal.
Yang, M. J., Li, N., and Lorenz, K. (2021). The impact of emerging market competition on innovation and business strategy: Evidence from Canada. Journal of Economic Behavior & Organization.
Yaseen Zeebaree, M. R., and Siron, R. B. (2017). International Review of Management and Marketing The Impact of Entrepreneurial Orientation on Competitive Advantage Moderated by Financing Support in SMEs. International Review of Management and Marketing, 7(1).
Zeebaree, M. R., and Siron, R. B. (2017). The Impact of Entrepreneurial Orientation on Competitive Advantage Moderated by Financing Support in SMEs. International Review of Management and Marketing, 7(1)
Adietya, K., Miyasto, dan Sugiarto, Y. (2015). Analisis Pengaruh Teknologi Informasi dan Inovasi terhadap Keunggulan Bersaing untuk Meningkatkan Kinerja Organisasi (Studi pada UKM Makanan di Kota Semarang). Undip E- Journal System Portal.
Amrulloh, F., dan Hidayat, W. (2018). Pengaruh orientasi pasar, orientasi kewirausahaan, dan inovasi terhadap kinerja pemasaran (studi kasus pada UMKM kerajinan logam di Kabupaten Tegal). Jurnal Ilmu Administrasi Bisnis, 7(1).
AlQershi, N. (2021). Strategic thinking, strategic planning, strategic innovation and the performance of SMEs: The mediating role of human capital. Management Science Letters, 11(3).
Aloulou, W., J. (2019). Impacts of strategic orientations on new product development and firm performances: Insights from Saudi industrial firms. European Journal of Innovation Management.
Arieftiara, D. (2017). Pengaruh Kontinjen Fit antara Strategi Bisnis dengan Ketidakpastian Lingkungan terhadap Penghindaran Pajak. Disertasi. Fakultas Ekonomi. Program Pascasarjana Ilmu Akuntansi. Universitas Indonesia. Depok.
Armstrong, G., Adam, S., Denize, S., and Kotler, P. (2014). Principles of marketing. Pearson Australia.
Banani, A. (2013). Bagaimana Menggapai Keunggulan Bersaing Yang Berkelanjutan. Sustainable Competitive Advantage (SCA), 1(1)
Bhaskaran.S, (2006) Incremental Innovation and Business Performance: Small and Medium-Size Food Enterprises in a Concentrated Industry environment, Journal of Small Business Management, January 2006, 44(1).
Barney, J. 1991. Firm resources and sustained competitive advantage. Journal of Management, 17(1), pp 99–120.
Barney, J. B. and Clark, D. N. (2007). Resource-based theory: Creating and sustaining competitive advantage. New York: Oxford University Press.
Bharadwaj, Sundar G, P.R.Varadarajan, and Fahly, Jihn. (1993). “Sustainable Competitive Advantage in Service Industries: A Conceptual Model and Research Propositions“. Journal of Marketing, 57(10).
Chang, C.H. (2011). The influence of corporate environmental ethics on competitive advantage: The mediation role of green innovation. Journal of Business Ethics, 104(3).
Chen, W., and Wang, L. (2020). How entrepreneurial orientation affects R&D alliance performance: the moderating roles of competitive intensity and dependence on the partner. Journal of Business & Industrial Marketing, 35(12).
Clauss, T., Kraus, S., Kallinger, F.L., Bican, P.M., Brem, A. and Kailer, N., (2021). Organizational ambidexterity and competitive advantage: The role of strategic agility in the exploration-exploitation paradox.Journal of Innovation & Knowledge, 6(4).
Collins, D.J., 1994. How valuable are organizational capabilities?”. Strategic Management Journal, 15, pp 143-152.
Correia, R. J., Dias, J. G., and Teixeira, M. S. (2020). Dynamic capabilities and competitive advantages as mediator variables between market orientation and business performance. Journal of Strategy and Management, 14(2).
Darma, D. A., Abdussamad, Z. K., and Rahman, E. (2022). Pengaruh Strategi Inovasi Produk Dan Pemasaran Media Sosial Terhadap Keunggulan Bersaing Pada UMK Kuliner Di Kota Gorontalo. JAMBURA: Jurnal Ilmiah Manajemen dan Bisnis, 5(1).
Dewi, N. W. P. N., dan Suparna, G. (2017). Peran inovasi dalam memediasi pengaruh orientasi kewirausahaan terhadap keunggulan bersaing industri Kain Endek (Doctoral dissertation, Udayana University).
Ekawati, N. W., Rahyuda, I. K., Yasa, K. N. N., and Sukaatmadja, I. P. G. (2016). Implementation of Ecoprenership and Green Innovation in Building Competitive Advantage to Generate Success of New Spa Products in Bali. International Bussiness Management, 10 (14).
Ekawati, N. W., Giantari, K., Kertiyasa, N. N., and Sariyathi, N. K. (2017). Ecopreneurship and Green Inovation for the Success of New Spa Products. Journal of Business and Retail Management Research, 11(3).
Fadhillah, Y., Yacob, S., dan Lubis, T. A. (2021). Orientasi Kewirausahaan, Inovasi Produk, Dan Media Sosial Terhadap Kinerja Pemasaran Dengan Keunggulan Bersaing Sebagai Intervening Pada Ukm Di Kota Jambi. Jurnal Manajemen Terapan dan Keuangan, 10(01).
Fatmawati, R. A., Pradhanawati, A., dan Ngatno. (2016). Pengaruh Orientasi Pasar, Orientasi Kewirausahaan Terhadap Keunggulan Bersaing dan Kinerja Pemasaran Pada Warung Kucingan/Angkringan Di Kota Semarang. Jurnal Ilmu Administrasi dan Bisnis, 5(3).
Feranita, N. V., dan Setiawan, H. A. (2019). Peran Keunggulan Bersaing Dalam Memediasi Dampak Orientasi Pasar Dan Orientasi Kewirausahaan Terhadap Kinerja UMKM. Majalah Ilmiah Dian Ilmu, 18(1).
FREEMAN, P. K. (1978). The States'response To The Energy Crisis: An Analysis Of Innovation. The University of Wisconsin-Milwaukee.
Grant, R. M. (1991). The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation. California Management Review, 33(3).
Gul, F.A., (1991). The effect of management accounting systems and environmental uncertainty on small business manager's performance, Accounting and Business Research.
Haryanto, A. T. (2019). Pemasaran Dan Keunggulan Bersaing (Studi Perusahaan Finance di Wonogiri). Jurnal Perilaku dan Strategi Bisnis, 7(2), 106-114.
Hamel, G., and Prahalad, C. K. (1994). Competing for the future. Harvard business review, 72(4), 122-128.
Hemmati, M., and Hosseini, H. (2016). Effect of IT application on project performance focusing on the mediating role of organizational innovation, knowledge management and organizational capabilities. Engineering, Technology & Applied Science Research, 6(6).
Hoque, A. S. M. M. (2018). The effect of entrepreneurial Orientation on Bangladeshi SME performance: Role of organizational culture. International Journal of Data and Network Science.
Hittmár, Š., Varmus, M., and Lendel, V. (2014). Proposal of model for effective implementation of innovation strategy to business. Procedia - Social and Behavioral Sciences.
Huang, Z., Benyoucef, M., and Dai, S. (2015). The effects of social media on consumer buying intention: An empirical study. Journal of Retailing and Consumer Services.
Jannah, M., Irawati, A., and Purnomo, H. (2019). Pengaruh Orientasi Kewirausahaan dan Inovasi Produk Terhadap Kinerja UMKM Batik Gedog Khas Tuban. Eco-Entrepreneur, 5(1), 33-48
Kazinguvu, N. (2016). Strategic Innovations in Management of Small and Medium Sized Manufacturing Companies in Rwanda. Research Papers in Business Entrepreneurship and Management.
Khan, S. Z., Yang, Q., dan Waheed, A. (2019). Investment in intangible resources and capabilities spurs sustainable competitive advantage and firm performance. Corporate Social Responsibility and Environmental Management, 26(2).
Kocak A, C. A., Oflazoglu. (2017). Market, entrepreneurial, and technology orientations: impact on innovation and firm performance. Management Decision, 55(2).
Kotler, Philip. (2008). Manajemen Pemasaran. PT. Gelora Aksara Pratama, Jakarta.
Kotler, Philip and Armstrong, Gary. 2012. Principles of Marketing. New Jersey: Prentice Hall
Lestari, N. W. N. D., dan Warmika, I. G. K. (2019). Pengaruh orientasi teknologi dan orientasi pasar terhadap kinerja perusahaan (Doctoral dissertation, Udayana University).
Lestari, I., Astuti, M., dan Ridwan, H. (2019). Pengaruh inovasi dan orientasi kewirausahaan terhadap keunggulan bersaing umkm kuliner. Jurnal Riset Manajemen dan Bisnis (JRMB) Fakultas Ekonomi UNIAT, 4(1).
Lestari, S. D., Leon, F. M., Widyastuti, S., Brabo, N. A., dan Putra, A. H. P. K. (2020). Antecedents and consequences of innovation and business strategy on performance and competitive advantage of SMEs. Journal of Asian Finance, Economics and Business, 7(6).
Lieberman, M., (2021). Is competitive advantage intellectually sustainable.Strategic Management Review, 2(1).
Mahdi, O.R., Nassar, I.A. and Almsafir, M.K., (2019). Knowledge management processes and sustainable competitive advantage: An empirical examination in private universities. Journal of Business Research.
Meutia, Ismail, T., and Ummi, N. (2017). Improving anticipative learning through entrepreneurial orientation in small to medium size enterprises. European Research Studies Journal, 20(3).
Nuvriasari, A., Wicaksono, G., and Sumiyarsih, S. (2018). Peran Orientasi Pasar, Orientasi Kewirausahaan Dan Strategi Bersaing Terhadap Peningkatan Kinerja Ukm. EKUITAS (Jurnal Ekonomi Dan Keuangan), 19(2).
Oentoro, Deliyanti. 2012. Manajemen Pemasaran Modern. LaksBang PRESSindo, Yogyakarta
Pakpahan, Manuntun. 2016. Manajemen Pemasaran. Medan: CV. Rural Development Service
Papadas, K.K., Avlonitis, G.J., Carrigan, M. and Piha, L. (2019). The interplay of strategic and internal green marketing orientation on competitive advantage. Journal of Business Research.
Porter, M. E. (1979). HBR. Harvard Business Review.
Peteraf, M. A. 1993. The Cornerstones of Competitive Advantage: A Resource- Based View Strategic Management Journal, 14, 179-191.
Prajogo, D.I., (2016). The strategic fit between innovation strategies and business environment in delivering business performance. International journal of production Economics.
Read, A. (2000). Determinant of sucessful organizational innovation: A review of current research. Journal of Management Practice, 3(1).
Rini, R., Lisnini, L., Maretha, F., dan Pebrianti, Y. (2020). Pengaruh Orientasi Kewirausahaan, Orientasi Pasar Dan Orientasi Pembelajaran Terhadap Keunggulan Bersaing Dan Kinerja Usaha (Studi Pada Usaha Kecil Pengolah Makanan di Kota Palembang). Jurnal Aplikasi Manajemen dan Bisnis, 1(1).
Russell, S.N. and Millar, H.H., (2014). "Exploring the Relationships among Sustainable Manufacturing Practices , Business Performance and Competitive Advantage : Perspectives from a Developing Economy", Journal of Management and Sustainability, 4(3).
Rahmadi, A. N., Jauhari, T., dan Dewandaru, B. (2020). Pengaruh orientasi pasar, inovasi dan orientasi kewirausahaan terhadap keunggulan bersaing pada UKM di jalanan Kota Kediri. Jurnal Ekbis, 21(2).
Schmenner, R. W. (1986). How can service businesses survive and prosper? Sloan Management Review, 27(3).
Seo, Y. W., and Chae, S. W. (2016). Market Dynamics and Innovation Management on Performance in SMEs: Multi-agent Simulation Approach. Procedia Computer Science.
Setyawati, A. (2015). Keunggulan kompetitif dan inovasi (Studi pada umkm sektor industri makanan dan minuman di Bandung Raya). Jurnal Akademika, 13(2).
Sigalas, C. and Economou, V.P., (2013). Revisiting the concept of competitive advantage: Problems and fallacies arising from its conceptualization. Journal of Strategy and Management, 6(1).
Singh, S. K., Chen, J., Del Giudice, M., & El-Kassar, A. N. (2019). Environmental ethics, environmental performance, and competitive advantage: Role of environmental training. Technological Forecasting and Social Change.
Siswati, E., and Alfiansyah, R. (2020). Keunggulan Bersaing Umkm Kuliner Berbasis Inovasi (Studi Pada Umkm Keripik Samiler Kasper Di Sidoarjo). IDEI: Jurnal Ekonomi & Bisnis, 1(2), 84-90.
Suhaeni, T. (2018). Pengaruh strategi inovasi terhadap keunggulan bersaing di industry kreatif (Studi kasus umkm bidang kerajinan tangan di kota Bandung). Jurnal Riset Bisnis dan Investasi, 4(1).
Suharto, I. K. S. (2018). The Influence of Market Orientation and Entrepreneurial Orientation to Competitive Advantage Through Business Innovation: Study on Batik Trusmi Cirebon West Java Province Indonesia. International Review of Management and Marketing, 8(1).
Sumiati. (2015). “Pengaruh Strategi Orientasi Wirausaha Dan Orientasi Pasar Pengaruhnya Terhadap Kinerja Perusahaan UMKM Di Kota Surabaya.” Jurnal Ekonomi & Manajemen, 1(1)
Sunyoto, D. (2014). Dasar-dasar Manajemen Pemasaran, konsep, strategi, dan kasus.
Tian, Y., Wang, Y., Xie, X., Jiao, J., and Jiao, H. (2019). The impact of business- government relations on firms' innovation: Evidence from Chinese manufacturing industry. Technological Forecasting and Social Change.
Tjiptono, F. (2008). Strategi pemasaran.
Wang, C. H. (2019). How organizational green culture influences green performance and competitive advantage: The mediating role of green innovation. Journal of Manufacturing Technology Management.
Wernerfelt. (1984). A resource-based view of the firm. Strategic Management Journal.
Yang, M. J., Li, N., and Lorenz, K. (2021). The impact of emerging market competition on innovation and business strategy: Evidence from Canada. Journal of Economic Behavior & Organization.
Yaseen Zeebaree, M. R., and Siron, R. B. (2017). International Review of Management and Marketing The Impact of Entrepreneurial Orientation on Competitive Advantage Moderated by Financing Support in SMEs. International Review of Management and Marketing, 7(1).
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Published
2025-03-11
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Section
Articles
How to Cite
Arsha, I. M. R. M., Mahayasa, I. G. A., & Puja, I. M. S. (2025). Innovation Strategy Based on Shiwam Satyam Sundharam to Increase Competitive Advantage in Wood Crafts in Gianyar Regency. Daengku: Journal of Humanities and Social Sciences Innovation, 5(2), 221-232. https://doi.org/10.35877/454RI.daengku3764
Copyright (c) 2025 I Made Risma M Arsha, I Gede Aryana Mahayasa, I Made Suasti Puja
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