STRATEGIC RESOURCES AS COMPETITIVE STRATEGIC BASE IN SMALL MEDIUM ENTERPRISES (SMEs)

After the co-19 pandemic that led to the economic crisis requires a variety of joint efforts to build a better economic structure supported by all the economic power of the people. The empowerment of a people's economy is inseparable from the activities of developing entrepreneurship as an important factor in promoting a sustainable economy. The development of entrepreneurship through empowering micro and medium enterprises (SMEs) is crucial for improving the regional economy in Indonesia because SMEs have made many important contributions to economic growth. The contribution of SMEs in terms of providing employment, employment opportunities, increasing community income and non-oil and gas exports has proven to be a means for rural communities to drive economic activities.

The obvious steps to empower SMEs have become increasingly critical with dramatic changes in the global business environment, especially in the face of the industrial revolution 4.0. SMEs are required to achieve competitive advantage so they can win the competition and be able to maintain their existence in the market. On the other hand, it must be realized that SMEs competitiveness is generally relatively low so that it is susceptible to changes in the business environment that are increasingly fast and full of uncertainty. This condition can have an impact on the low productivity of SMEs which results in business failure. The lack of ability of SMEs to adapt and respond to the business environment they face is also caused by the lack of internal capabilities, especially strategic resources.

SMEs as a endorser of the tourism sector in Bali has proven to be one source of community income while increasing regional income. SMEs has also added value to increase the attractiveness of Bali's tourism in the provision of facilities and infrastructure, as well as improving the image of tourism. Most SMEs produce souvenir products for tourists who visit and as a forerunner to the development of products as one of the commodities of foreign trade. Not a few, finally the SMEs products are able to enter the international market through export activities so that they contribute to the increase in the accumulation of foreign exchange reserves, the development of national industries, and people's income.

Strategic resources are a collection of assets and capabilities that are used as core competencies for companies to produce competitive advantage. Strategic resources are fundamental strategic instruments for generating competitive advantage for companies, which can provide meaning for operations and competition, as well as being the basis for strategy choices. The process of developing, maintaining, and controlling strategic resources is an important effort that must be carried out from time to time which in essence is a strong foundation to achieve sustainable competitive advantage towards the creation of superior performance for the company. The suitability of the strategy with its strategic resources is an important start for improving performance for a company. Strategic resources owned and controlled by the company can be used as a basis for formulating and implementing strategies to achieve optimal business performance. The sustainability and excellence of a company depends on the resources it has, as well as what strategies are chosen to empower these resources, so that they are able to respond well to opportunities and challenges in the business environment they face.

This condition encourages the importance of investment to develop strategic resources to be in line with the implementation of strategies in the context of creating competitive advantage and resulting in improved company performance. In addition, competitive advantage can be obtained from strategic resources that are created or acquired, maintained and developed by companies as a basis for selecting competitive strategies, so they can act as a weapon to maneuver in competing in the markets they face. The success of SMEs in improving business performance is not only obtained from the mastery, control and development of strategic resources. However, the application of competitive strategies that are in accordance with the mastery of strategic resources to be able to excel in better competition sustainability.

The impact of mastery of resources from the perspective of organizational capability on the implementation of business strategies shows the importance of organizational capabilities to support the implementation of business strategies. Therefore, the company's resources are important to create competitive advantages that lead to improving business performance, it's just that the study of company resources is the basis for implementing strategies to improve business performance