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


  • Syurwana Department of Economic Education, Universitas Negeri Makassar, South Sulawesi, Indonesia
  • Muhammad Azis Department of Economic Education, Universitas Negeri Makassar, South Sulawesi, Indonesia
  • Basri Bado Department of Economic Education, Universitas Negeri Makassar, South Sulawesi, Indonesia



Busines Success, Entrepreneurial Competence, Entrepreneural Orientation, Competitive Advantage.


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.


Agha, S., Alrubaiee, L., & Jamhour, M. (2012). Effect of core competence on competitive advantage and organizational performance. International Journal of Business and Management, 7(1), 192–204.

Ahmed, Y. A., Kar, B., & Ahmed, H. M. S. (2018). Critical factors of entrepreneurial competencies for successfully managing micro and small enterprise in Ethiopia. International Journal of Business and Management Invention, 7(7), 79–87.

Aidara, S., Mamun, A. Al, Nasir, N. A. M., Mohiuddin, M., Nawi, N. C., & Zainol, N. R. (2021). Competitive advantages of the relationship between entrepreneurial competencies and economic sustainability performance. Sustainability, 13, 1–19.

Akmal, A. (2017). Effect of entrepreneurial competency on competitive advantage and marketing performance in micro, small and medium enterprises of seaweed processing. RJOAS, 11(71), 212–220.

Almeida, F., & Buzady, Z. (2019). Assessment of entrepreneurship competencies through the use of fligby. Digital Education Review, 35, 151–169.

Andiningtyas, I. R. S., & Nugroho, R. L. (2014). Pengaruh orientasi kewirausahaan terhadap kinerja perusahaan kecil. Jurnal Manajemen Indonesia, 14(1), 37–46.

Aqeel, A. M. Bin, Awan, A. N., & Riaz, A. (2011). Determinants of business success (An exploratory study). International Journal of Human Resource Studies, 1(1), 98–110.

Barkhatov, V., Pletnev, D., & Campa, A. (2016). Key success factors and barriers for small bussinesses: Comparative analysis. Procedia Social and Behavioral Sciences, 221, 29–38.

Barney, J. (1991). Firm resource and sustained competitive advantage. Journal of Management, 17(1), 99–120.

Baum, J. R. (2014). The psychology of entrepreneurship. Oracle Magazine.

Baum, J. R., & Locke, E. A. (2004). The relationship of entrepreneurial traits, skill, and motivation to subsequent venture growth. Journal of Applied Psychology, 89(4).

Belas, J., Bilan, Y., Demjan, V., & Sipko, J. (2015). Entrepreneurship in SME segment: Case study from the Czech Republic and Slovakia. Amfiteatru Economic, 17(38), 308–326.

Bird, B. (1995). Towards a theory of entrepreneurial competency. Firm Emergence and Growth, 2, 51–72.

Bruderl, J., & Preisendorfer, P. (1998). Network support and the success of newly founded business. Small Business Economics, 10(3), 213–225.

Butler, D. (2006). Enterprise planning and development, small business start-up survival and growth. Elsevier Ltd.

Cárcamo-Solís, M. de L., Arroyo-López, M. del P., Alvarez-Castañón, L. del C., & García-López, E. (2017). Developing entrepreneurship in primary schools. The Mexican experience of “My first enterprise: Entrepreneurship by playing.” Teaching and Teacher Education, 64, 291–304. tate.2017.02.013

Clulow, V., Gerstman, J., & Barry, C. (2003). The resource-based view and sustainable competitive advantage: The case of a financial services firm. Journal of European Industrial Training, 27(5), 220–232.

Eggers, F. K. (2013). Implications of customer and entrepreneurial orientations for SME growth. Management Decision, 3, 524–546.

Fazal, S. A., Mamun, A. Al, Ahmad, G. Bin, & Masud, M. M. (2019). Entrepreneurs’ competencies and competitive advantages: A study on Malaysian microenterprises. Global Business Review, 1–14.

Ferreira, J. J., Fernandes, C. I., Kraus, S., & McDowell, W. C. (2021). Moderating influences on the entrepreneurial orientation-business performance relationship in SMEs. International Journal of Entrepreneurship and Innovation, 20(10), 1–11.

Glackin, C. E. W., & Phelan, S. E. (2020). Improving entrepreneurial competencies in the classroom: An extension and in-study replication. New England Journal of Entrepreneurship, 23(2), 79–96.

Gupta, S., Woodside, A., Dubelar, C., & Bradmore, D. (2009). Diffusing knowledge-based core competencies for leveraging innovation strategies: Modeling outsourcing to knowledge process organization (KPOs) in pharmaceutical networks. Industrial Marketing Management, 38, 219–227.

Hidayat, D., Abdurachman, E., Elidjen, & Hutagaol, Y. (2021). The mediating role of entrepreneurial orientation on the knowledge creation-firm performance nexus: Evidence from Indonesian IT companies. Advances in Science, Technology and Engineering Systems, 6(1), 922–927.

Kamukama, N., Kyomuhangi, D. S., Akisimire, R., & Orobia, L. A. (2017). Competitive advantage: Mediator of managerial competence and financial performance of commercial banks in Uganda. African Journal of Economic and Management Studies, 8(2), 221–234.

Kaur, H., & Bains, A. (2013). Understanding the concept of entrepreneur competency. Journal of Business Management Social Sciences, 2, 31–33.

Kilenthong, P., Hultman, C. M., & Hills, G. E. (2016). Entrepreneurial orientation as the determinant of entrepreneurial marketing behaviors. Journal of Small Business Strategy, 26(2), 1–21.

Kiyabo, K., & Isaga, N. (2020). Entrepreneurial orientation, competitive advantage, and SMEs’ performance: Application of firm growth and personal wealth measures. Journal of Innovation and Entrepreneurship, 9(12), 1–15. s13731-020-00123-7

Kotler, P. (2005). Manajemen pemasaran. Indeks.

Lackeus, M., & Williams, M. K. (2015). Venture creation program-bridging entrepreneurship education and technology transfer. Education & Training, 57(1), 48–73.

Lee, D. Y., & Tsang, E. W. K. (2002). The effects of entrepreneurial personality, background and network activities on venture growth. Journal of Management Studies, 38(4), 583–602.

Lee, S., Seo, K., & Sharma, A. (2013). Corporate social responsibility and firm performance in the airline industry: The moderate role of oil prices. Tourism Management, 38, 20–30.

Li, S., Ragu-Nathan, B., Ragu-Nathan, T. S., & Subba Rao, S. (2006). The impact of supply chain management practices on competitive advantage and organizational performance. Omega: The International Journal of Management Science, 34(2), 107–124.

Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the enterpreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135–172.

M. Muafi, & Roostika, R. (2014). Organizational performance and competitive advantage determinants of creative SMEs. Journal of Corporate Governance, Insurance, and Risk Management, 1(1), 1–19. EJEM_2014_Vol.1_No.2.pdf

Maksum, I. R., Sri Rahayu, A. Y., & Kusumawardhani, D. (2020). A social enterprise approach to empowering micro, small and medium enterprises (SMEs) in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 6(3), 1–17.

Man, T. W. Y., Lau, T., & Chan, K. F. (2002). The competitiveness of small and medium enterprise: A conceptualization with focus on entrepreneurial competencies. Journal of Business Venturing, 17(2), 123–142.

Mathers, N., Fox, N., & Hunn, A. (2009). Surveys and questionnaire. The NIHR RDS for the East Midlands/Yorkshire & The Humber.

Mitchelmore, S., & Rowley, J. (2013). Entrepreneurial competencies of women entrepreneurs pursuing business growth. Journal Small Business Entrepreneurship Development, 20, 125–142.

Morris, M. H., Kuratko, D. F., & Cornwell, J. R. (2013). Entrepreneurship program and the modern university. Edward Elgar Publishing.

Mullins, J. W. C. (2014). Manajemen pemasaran. Erlangga.

Munisi, G., & Randoy, T. (2013). Corporate governance and company performance across sub-Saharan African countries. Journal of Economics and Business, 70, 92–110.

Mustafa, H., Rehman, K. U., Zaidi, S. A. R., & Iqbal, F. (2015). Studying the phenomenon of competitive advantage differentiation: Market and entrepreneurial orientation perspective. Journal of Business and Management Sciences, 3(4), 111–117.

Pepple, G. J., & Enuoh, R. O. (2020). Entrepreneurial competencies: A required skill for business performance. European Journal of Business and Innovation Research, 8(3), 50–61.

Perren, L. (2000). Factors in the growth of micro-enterprises: Exploring the implications. Journal of Small Business and Enterprise Development, 7(1), 58–68.

Pinho, J. C., & Sa’, E. S. de. (2014). Personal characteristics, business relationships and enterpreneurial performance: Some empirical eviedence. Journal Business and Enterprise Development, 21(2), 284–300.

Rezaei, J., & Ortt, R. (2018). Entrepreneurial orientation and firm performance: The mediating role of functional performances. Management Research Review, 41(7), 878–900.

Riyanti, R. (2011). Kewirausahaan dari sudut pandang psikologi kepribadian. Grasindo.

Ruchkina, G., Melnichuk, M., Frumina, S., & Mentel, G. (2017). Small and medium enterprises in the context of regional development and innovations. Journal of International Studies, 10(4), 259–271.

Santadreu-Mascarell, C., Garzon, D., & Knor, H. (2013). Entrepreneurial and innovative competences, are they the small? Management Decision, 51(5), 1084–1095.

Schumpeter, J. A. (2007). Change and the entrepreneur. Essays of JA.

Simionescu, M., Bilan, Y., Smrcka, L., & Vincurova, Z. (2017). The effect of European economic integration and the imppact of Brexit on the UK immigrants from the CEE countries. E & Ekonomie A Management, 20(1), 29–47.

Soegoto, E. S. (2009). Entrepreneurship. Elex Media Komputindo.

Stephanie, E. (2003). Slovin’s formula sampling techniques. Houghton Mifflin.

Sulaksana, S. (2003). Integrated marketing communications. Pustaka Pelajar.

Tambunan, T. T. (2006). Development of small & medium enterprises in Indonesia from the Asia Pasific perspective. LPFE-USAKTI.

Tehseen, S., & Ramayah, T. (2015). Entrepreneurial characteristics and SMEs business success: The contingent role of external integration. Mediterranean Journal of Social Sciences, 16(1), 50–62.

Tehseen, Shehnaz, & Ramayah, T. (2015). Entrepreneurial competencies and smes business success: The contingent role of external integration. Mediterranean Journal of Social Sciences, 6(1), 50–61. v6n1p50

Ulhoi, J. P. (2005). The social dimensions of entrepreneurship. Technovation, 25(8), 939–946.

Urban, B. (2018). The influence of the regulatory, normative and cognitive institutions on entrepreneurial orientation in South Africa. The International Journal of Entrepreneur Skill and Innovation, 20(3), 182–193.

Utami, A. K., & Wilopo, S. (2018). Effect entrepreneurial orientation toward competitive advantage and business performance. RJOS, 7(79), 140–149. EFFECT

Varanavicius, V., Navikaite, A., Bilan, Y., & Strielkowski, W. (2017). Analysis of consumer behaviour in regional energy consumption. Economy of Region, 13(1), 147–156.

Wirda, F., H. Herri, Elfindri, E., Rivai, H. A., & H. Herizon. (2019). Competitive advantage: Mediation effect between entrepreneurial competency and business performance creative industries in West Sumatera-Indonesia. Academy of Entrepreneurship Journal, 25(1), 1–11.

Zainol, N. R., & Al Mamun, A. (2018). Entrepreneurial competency, competitive advantage and performance of informal women micro-entrepreneurs in Kelantan, Malaysia. Journal of Enterprising Communities: People and Places in the Global Economy, 12(3), 299–321.

Zhu, A. Y., Von-Zedtwitz, M., Assiakopoulos, D., & Fernandes, K. (2016). The impact of organization culture on concurrent engineering, design-for-safety, and product safety performance. International Journal of Production Economics, 176, 69–81.




How to Cite

Syurwana, Azis, M. . ., & Bado, B. . (2022). Competitive Advantage as a Mediation of Competence and Entrepreneurial Orientation in Business Success: An Empirical Evidence from Indonesia. Asian Journal of Business and Management, 10(3).