Innovation Strategy Based on Resource-Based Theory Perspective and its Impact on Small and Medium Business Performance

Abstract

This study aims to analyze innovation strategies in the perspective of resource-based theory (RBT). This research was conducted in the Province of Bali with the population in this study were all small and medium enterprises (SMEs) that produced export commodities and recorded in the List of Regional Exporters of Bali (Bali Province) in 2016, which amounted to 462 business units and sampling methods with slovin so that a sample of 215 is obtained. Analysis of data using PLS SEM. Mastery of social capital by export-oriented SMEs in Bali that prioritizes the cognitive dimension and is followed by the relational and structural dimensions have not been able to determine the improvement of their business performance. However, the mastery of social capital which is used as the basis for the application of innovation strategies to achieve a superior position in competition, is able to improve or improve their business performance