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All Journal Indonesian Journal of Law and Economics Review
Adelia Eva
Universitas Muhammadiyah Sidoarjo
Economics, Econometrics & Finance Law, Crime, Criminology & Criminal Justice

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Driving Business Performance: Cost Leadership and Government Innovation in SME Partnerships Detak Prapanca; Muhammad Yani; Herlinda Maya Kumala Sari; Vido Michael Gerung; Adelia Eva
Indonesian Journal of Law and Economics Review Vol 18 No 3 (2023): August
Publisher : Universitas Muhammadiyah Sidoarjo

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21070/ijler.v18i3.939

Abstract

This quantitative study aims to analyze the influence of Cost Leadership Strategy and government-led innovations on business performance through SME partnerships in the Food and Beverage sector. Conducted in the Sidoarjo district of Indonesia, with a population of 49 SME groups, the research utilized a saturated sampling technique and employed a structured questionnaire to gather data. Using SEM PLS analysis, the results indicate that the Cost Leadership Strategy accounts for 44% of the business performance variance, while innovation through partnerships drives an impressive 86% impact on business performance. The findings underscore the significance of strategically fostering sustainable business performance, highlighting the role of the government in supporting SME partnerships to achieve growth and efficiency in the global marketplace. Highlights: Cost Leadership Strategy: Examining the impact of cost-focused approaches on SME business performance. Innovation in SMEs: Understanding how innovative practices contribute to business growth. Partnerships for Success: Analyzing the role of SME collaborations in driving sustainable business outcomes. Keywords: Cost Leadership Strategy, Innovation, SME Business Performance, SME Partnerships, Indonesia.
Co-Authors Detak Prapanca Herlinda Maya Kumala Sari, Herlinda Maya Kumala Muhammad Yani Vido Michael Gerung