THE INFLUENCE OF STRATEGIC RESOURCES AND COMPETITIVE STRATEGY ON IMPROVING OF BUSINESS PERFORMANCE

This study investigates the influence of resources strategic and competitive strategy on the performance of SMEs in Bali, Indonesia. The sample of this study consists of 149 SMEs, comprised of 114 small businesses and 35 medium enterprises, and selected using the stratified random sampling. The data is analyzed in two steps; the descriptive statistical analysis and inferential analysis. The descriptive analysis aims to discover the characteristics and the responses on the questionnaire items, while the inferential analysis; using the Structural Equation Modeling (SEM) through AMOS software to test the hypothesis of the research. The finding shows that the strategic resources have a positive and significant effect on the competitive strategy; the competitive strategy has a positive and significant effect on performance, and the strategic resources have a positive and significant effect on the performance. Also, it is found that strategic resources have a positive indirect effect on business performance through a competitive strategy. The descriptive analysis reveals that for the resources strategic, the achievement of reputation resources has the highest response of 4.06. Meanwhile, for the competitive strategy, the highest response of 4.08 is given to the focus strategy. The highest response of 3.94 the performance is productivity.