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Factors Affecting Competitive Advantages Among the Batik SMEs in Malaysia

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The Importance of New Technologies and Entrepreneurship in Business Development: In The Context of Economic Diversity in Developing Countries (ICBT 2020)

Part of the book series: Lecture Notes in Networks and Systems ((LNNS,volume 194))

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Abstract

The economic development of emerging economies is mainly focusing on SMEs’ performance. Moreover, the increasingly competitive business landscape forced SMEs to cultivate their competitive advantage for improvement. This work aimed to examine the effects of firm’s innovation, customer, competitor, and supplier orientations with the firms’ absorptive capacity regarding competitive advantage. This study utilised a cross-sectional research design and collected data from batik SMEs in Kelantan and Terengganu situated in Malaysia. The structured interview obtained 213 valid responses for data analysis. The analysis used variance-based structural equation model such as PLS-SEM. The results revealed that the significant and positive effect of a firm’s innovation orientation, competitor orientation, supplier orientation, and firm’s absorptive capacity on the firm’s competitive advantage. However, the firm’s customer orientation had an insignificant effect on the firm’s competitive advantage. Moreover, the firm’s competitor orientation and absorptive capacity were the most significant contributors to the firms’ competitive advantage. Finally, this paper presented the discussion and implications in concluding the research findings.

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Acknowledgement

This study was funded by Research Management Innovation Center (RMIC), Universiti. Malaysia Kelantan with allocation RM9000.00.

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Authors and Affiliations

  1. Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, 16100, Kota Bharu, Kelantan, Malaysia

    Noorshella Che Nawi, Raja Rosnah Raja Daud & Noorul Azwin Md Nasir

  2. Faculty of Business and Information Science, UCSI University, Malaysia. No. 1, Jalan Menara Gading, UCSI Heights (Taman Connaught), Cheras, 56000, Kuala Lumpur, Malaysia

    Abdullah Al Mamun

Authors
  1. Noorshella Che Nawi
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  2. Abdullah Al Mamun
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  3. Raja Rosnah Raja Daud
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  4. Noorul Azwin Md Nasir
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Corresponding author

Correspondence to Noorshella Che Nawi .

Editor information

Editors and Affiliations

  1. Middle East Technical University-Northern Cyprus Campus, Güzelyurt, Turkey

    Bahaaeddin Alareeni

  2. College of Business and Finance, Ahlia University, Manama, Bahrain

    Allam Hamdan

  3. Middle East Technical University-Northern Cyprus Campus, Güzelyurt, Turkey

    Islam Elgedawy

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Nawi, N.C., Al Mamun, A., Daud, R.R.R., Nasir, N.A.M. (2021). Factors Affecting Competitive Advantages Among the Batik SMEs in Malaysia. In: Alareeni, B., Hamdan, A., Elgedawy, I. (eds) The Importance of New Technologies and Entrepreneurship in Business Development: In The Context of Economic Diversity in Developing Countries. ICBT 2020. Lecture Notes in Networks and Systems, vol 194. Springer, Cham. https://doi.org/10.1007/978-3-030-69221-6_85

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  • DOI: https://doi.org/10.1007/978-3-030-69221-6_85

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-69220-9

  • Online ISBN: 978-3-030-69221-6

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