Competitive Advantage as a Mediation of Competence and Entrepreneurial Orientation in Business Success: An Empirical Evidence from Indonesia

Abstract

Small entrepreneurs must consider several aspects in achieving business success, including entrepreneurial competence, entrepreneurial orientation, and competitive advantage. This study aims to predict the effect of competence and entrepreneurial orientation on competitive advantage and its impact on small business success. This research is survey research with a quantitative approach. Data were collected using a questionnaire to 134 small entrepreneurs Emping Melinjo in the Selayar Islands Regency, South Sulawesi, Indonesia. The study results show that competence and entrepreneurial orientation have a positive and significant impact on business success. In addition, the competitive advantage variable mediates the influence between competence and entrepreneurial orientation with business success. This study contributes significantly to the existing literature on entrepreneurial competence, entrepreneurial orientation, competitive advantage, and business success, especially in explaining the performance of small businesses in Indonesia.