Effectuation Strategy and Niche Marketing  for Competitive Advantage

Farika Nikmah; Erlangga Andi Sukma; Evi Suwarni; Candra Wahyu Hidayat

doi:10.18535/ijsrm/v11i05.em05

Abstract

This research was conducted on batik craftsmen in East Java, Indonesia. Competitive advantage for batik craftsmen is an effort to upscale by aligning their positions with corporate ones. Strategies that can be taken as an effort to achieve competitive advantage for batik craftsmen are effectuation strategies and niche marketing, where these strategies explore and exploit internal and external resources. Batik craftsmen, with their limitations, must be smart in dealing with their business in order to survive and be successful. The effectuation strategy teaches to maximize the resources you have to minimize the risk of loss. Creativity, innovation is the key to the effectuation strategy. Meanwhile, niche marketing is a strategy to avoid competing in the general market, but to focus on specific markets with consumers with definite demands.

The purpose of this study was to determine the effect of effectuation strategy and niche marketing on competitive advantage. Research with a quantitative approach, in regression, with data obtained through distributing questionnaires. The research population is batik artisans throughout East Java who are registered in the provincial government database and the sample is calculated using calculator.net.

The results of the study show that there is a positive and significant effect partially between the effectuation strategy on competitive advantage and niche marketing on competitive advantage. While the dominant influence is on niche marketing to competitive advantage. This is because batik is a unique product, so the market is segmented and specialized. So that the niche market is more potential as a market for batik craftsmen.

Keywords

effectuation strategyniche marketingcompetitive advantagebatik craftsmen

References

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Sarasvathy, S., & Dew, N. (2008). Effectuation and over-trust: Debating Goel and Karri. Entrepreneurship Theory and Practice, 727-738.Google Scholar ↗
Schein, E. H. (2004). Organizational Culture and Leadership . San Fransisco: Jossey-Bass A Wiley Imprint.Google Scholar ↗
Sinarta, A. (2017). Analisis Strategi Bersaing Pada Perusahaan Rafting Yang Ada di Bali. AGORA, 1-10.Google Scholar ↗
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Sui, S., & Baum, M. (2014). Internationalization strategy, firm resources and the survival of SMEs in the export market. Journal of International Business Studies, 821-841.Google Scholar ↗
Sulistyo, H., & Ayuni, S. (2020). Competitive advantages of SMEs: The roles of innovation capability, entrepreneurial orientation, and social capital. Contaduría y Administración, 1-18.Google Scholar ↗
Xu, J., & Quaddus, M. (2013). Information systems for competitive advantages. Managing Information System, 27-40.Google Scholar ↗
Zhang, C. (2015). Study on Value Characteristics of Traditional Village and Its Protection Strategy. International Conference on Economics, Social Science, Arts, Education and Management Engineering, 263-267.Google Scholar ↗

[refR-1] Abdelkader, B., & Abed, B. (2016). The effect of information technology on competitive advantage of firm: The role of environmental uncertainty. The International Journal of Management Science and Information Technology (IJMSIT), 16-39.Google Scholar ↗

[refR-2] Anggadwita, G., Fitria, S., & Suyono, R. (2019). Strategy Development for Creating Competitive Advantages in Small and Medium Industries (SMIs). Journal of Applied Management, 688-697.Google Scholar ↗

[refR-3] Brettel, M., Mauer, R., & Engelen, A. (2012). Corporate effectuation: Entrepreneurial action and its impact on R&D project performance. Journal of Business Venturing, 167-184.Google Scholar ↗

[refR-4] Drea, J., & Hanna, J. (2000). Niche Marketing in Instrastate Passenger Rail Transportation. Transportation Journal, 33-43.Google Scholar ↗

[refR-5] Elderson, F. (2021). Supervision of Behaviour and CUlture: Foundations, practice & future development. DeNederlandscheBank Eurosysteem, 1-10.Google Scholar ↗

[refR-6] Fraccastoro, S., Gabrielsson, M., & Chetty, S. (2020). Social media firm specific advantages as enablers of network embeddedness of international entrepreneurial ventures. Journal of World Business.Google Scholar ↗

[refR-7] Galkina, T., & Chetty, S. (2015). Effectuation and networking of internationalizing SMEs. Management International Review, 647-676.Google Scholar ↗

[refR-8] Hermawan, S., & Amirullah. (2016). Metode Penelitian Bisnis (Pendekatan Kuantitati & Kualitatif). Surabaya: Universitas Muhammadiyah Sidoarjo.Google Scholar ↗

[refR-9] Hu, X., Ocloo, C., Akaba, S., & Worwui-Brown, D. (2019). Effects of Business to Business E-Commerce Adoption on Competitive Advantage of Small and Medium Sized Manufacturing Enterprises. Recent Issues in Economic Development, 80-102.Google Scholar ↗

[refR-10] Karami, M. (2020). Effectual Versus Causal International Opportunity Discovery and Creation: Implications for SMES’ Competitive Advantage. Entrepreneurship and the Community, 1-12.Google Scholar ↗

[refR-11] Khan, S. Z., Yang, Q., & Waheed, A. (2019). Investment in intangible resources and capabilities spurs sustainable competitive advantage and firm performance. Corporate Social Responsibility Environment Management, 285-295.Google Scholar ↗

[refR-12] Kodua, A. A. (2019). The Resource-Based View A Tool of Key Competency for Competitive Advantage. Problems and Perspectives in Management, 143-155.Google Scholar ↗

[refR-13] Laine, I., & Galkina, T. (2016). The interplay of effectuation and causation in decision making: Russian SMEs under institutional uncertainty. Int Entrep Manag Journal, 1-37.Google Scholar ↗

[refR-14] Michaelson, G. (1988). Niche Marketing in The Trenches. Marketing Communications, 19-24.Google Scholar ↗

[refR-15] Mir, S. Z. (2014). Towards Understanding The Impact Of Organizational Culture And Risk Management In Banking Sector In Developing Countries. Stockholm, Sweden: Royal Institute of Technology Stockholm, School of Industrial Engineering and Management.Google Scholar ↗

[refR-16] Murray, D., & Neil, M. (2012). Craft beer : penetrating a niche market. British Food Journal, 899-902.Google Scholar ↗

[refR-17] Nikmah, F., Rahmawati, R., & Sukma, E. (2021). Resource-Based View: Implementation in Indonesia SMEs to Achieve Competitive Advantage. European Journal of Research and Reflection in Management Sciences, 13-23.Google Scholar ↗

[refR-18] Nikmah, F., Sudarmiatin., Hermawan, A., Wardoyo, C., & Hasan, H. (2021). TOE Perspectives: Technology Adoption By SMEs in Facing the Industrial Revolution 4.0. European Journal of Business, Economics and Accountancy. Vol. 9, No. 1Google Scholar ↗

[refR-19] Nikmah, F., Sukma, E.A., Suwarni, E., & Rahmawati, R. (2022). Networking Capability as an Effort for SMEs to Internationalize. International Journal of Research in Business and Social Science. 11 (5), 149-154.Google Scholar ↗

[refR-20] Otola, I., Ostraszewska, Z., & Tylec, A. (2013). New directions of development of resource-based view in creating a competitive advantage. Business Management Dynamics, 26-33.Google Scholar ↗

[refR-21] Peng, X., Liu, Y., & Lin, Y. (2015). The Impact of Environment Uncertainty and Effectual Flexibility on Entrepreneurial Resource Combination: The Moderating Effect Entrepreneurial Self-efficacy. Front. Bus. Res. China, 559-575.Google Scholar ↗

[refR-22] Sarasvathy, S., & Dew, N. (2008). Effectuation and over-trust: Debating Goel and Karri. Entrepreneurship Theory and Practice, 727-738.Google Scholar ↗

[refR-23] Schein, E. H. (2004). Organizational Culture and Leadership . San Fransisco: Jossey-Bass A Wiley Imprint.Google Scholar ↗

[refR-24] Sinarta, A. (2017). Analisis Strategi Bersaing Pada Perusahaan Rafting Yang Ada di Bali. AGORA, 1-10.Google Scholar ↗

[refR-25] Sudarwati, Untoro, W., Setiawan, A., & Aini, I. (2020). Increased Marketing Performance of Batik SMES through Product innovation Capability, Niche Market Mastery and Adaptation of Future Changes. Test: engineering & Maangement, 3756-3767.Google Scholar ↗

[refR-26] Sui, S., & Baum, M. (2014). Internationalization strategy, firm resources and the survival of SMEs in the export market. Journal of International Business Studies, 821-841.Google Scholar ↗

[refR-27] Sulistyo, H., & Ayuni, S. (2020). Competitive advantages of SMEs: The roles of innovation capability, entrepreneurial orientation, and social capital. Contaduría y Administración, 1-18.Google Scholar ↗

[refR-28] Xu, J., & Quaddus, M. (2013). Information systems for competitive advantages. Managing Information System, 27-40.Google Scholar ↗

[refR-29] Zhang, C. (2015). Study on Value Characteristics of Traditional Village and Its Protection Strategy. International Conference on Economics, Social Science, Arts, Education and Management Engineering, 263-267.Google Scholar ↗