Strategic Performance Dynamics: Elucidating the Effect of Competitive and Growth Strategies on Companies

Armalia Reny W.A.* -  Faculty of Business, Universitas Mitra Indonesia, Indonesia
DOI : 10.22515/shirkah.v9i1.664

There was a dearth of empirical information and thorough understanding into how these strategies interacted and affected the performance of companies in the setting of Lampung Province before this research. Thus, this research investigates the effect of competitive and growth strategies on the strategic performance of companies registered with the Lampung Province Department of Industry and Trade. Utilizing a quantitative approach and statistical analysis of data from 396 survey respondents representing businesses across 15 cities and regencies in Lampung Province, the study employs the Partial Least Square (PLS) Structural Equation Modeling (SEM) method with SmartPLS software to analyze the data. The results indicate that competitive strategy significantly affects the strategic performance of companies. Additionally, growth strategy also significantly contributes to improved strategic performance, highlighting the importance of selecting the right growth strategies for companies. Simultaneously, both competitive and growth strategies exert a significant effect on the strategic performance of companies. These insights provide valuable guidance for businesses and regulatory authorities in Lampung Province's industrial and trade sectors, aiding them in designing more effective strategies to enhance company performance, considering both competitive and growth strategies.

Keywords : Competitive Strategy; Growth Strategy; Company Strategic Performance

  1. Ahmad, H., Yaqub, M., & Lee, S. H. (2023). Environmental-, social-, and governance-related factors for business investment and sustainability: A scientometric review of global trends. Environment, Development and Sustainability, 1-23. https://doi.org/10.1007/s10668-023-02921-x
  2. Ambya, A. (2022). Percepatan pembangunan berbasis sektor kunci di Provinsi Lampung tahun 2018 (Analisis input output). Jurnal Ekonomi Pembangunan, 11(1), 32–41. https://doi.org/10.23960/jep.v11i1.433
  3. Ansoff, H. I. (1972). Strategies for diversification. Harvard business review, 5(2). https://doi.org/10.1016/0024-6301(72)90048-9
  4. Armstrong, M., & Taylor, S. (2014). Armstrong’s Handbook Of Human Resource Management Practice . Kogan Page.
  5. Barney, J. (1991). Firm reources ad sustained competitive advantege. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
  6. Bititci, U. S., & Turner, T. (2000). Dynamics of performance measurement systems. International Journal of Operations & Production Management, 20(6), 692–704. http://www.emerald-library.com
  7. Chin, W. W. (1998). The partial least squares approach for structural equation modeling. In G. A. Marcoulides (Ed.), Modern methods for business research (pp. 295–336). Lawrence Erlbaum Associates Publishers.
  8. Cho, G., Hwang, H., Sarstedt, M., & Ringle, C. M. (2020). Cutoff criteria for overall model fit indexes in generalized structured component analysis. Journal of Marketing Analytics, 8(4), 189–202. https://doi.org/10.1057/s41270-020-00089-1
  9. Cohen, J. (1988). Statistical Power Analysis For The Behavior Sciences. Lawrence Erlbaum Associates.
  10. Disperindag, P. L. (2022). Buku Saku Kinerja 2022 Disperindag Provinsi Lampung. Disperindag Provinsi Lampung.
  11. Farida, I., & Setiawan, D. (2022). Business strategies and competitive advantage: The role of performance and innovation. Journal of Open Innovation: Technology, Market, and Complexity, 8(3), 163. https://doi.org/10.3390/joitmc8030163
  12. Garrido-Vega, P., Sacristán-Díaz, M., Moyano-Fuentes, J., & Alfalla-Luque, R. (2023). The role of competitive environment and strategy in the supply chain's agility, adaptability and alignment capabilities. European Journal of Management and Business Economics, 32(2), 133-148. https://doi.org/10.1108/EJMBE-01-2021-0018
  13. Garson, G. D. (2016). Partial Least Squeres: Regression & Structural Equation Models. Statistical Associates Publishers, Asheboro.
  14. Gozali, H., Sucherly, S., Suryana, Y., & Oesman, Y. M. (2015). The influence of corporate resources and corporate strategy to improve corporate performance at Indonesian state owned enterprises. Jurnal Bisnis Dan Manajemen, 16(2), 62–69.
  15. Hair Jr, J., Hair Jr, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2017). A primer on partial least squares structural equation modeling (PLS-SEM). Sage publications.
  16. Hair, Joe F, Risher, J. J., Sarstedt, M., & Ringle, C. M. (2018). Article information : When to use and how to report the results of PLS-SEM. European Business Review. https://doi.org/https://doi.org/10.1108/EBR-11-2018-0203
  17. Henderson, B. (2013). The experience curve reviewed. In M. Deimler, R. Lesser, D. Rhodes, & J. Sinha (Eds.), Own the Future: 50 Ways to Win from The Boston Consulting Group (pp. 211–214). The Boston Consulting Group, Inc. https://doi.org/10.1002/9781119204084.ch28
  18. Henseler, J., Hubona, G., & Ash, P. (2016). Using PLS path modeling in new technology research: updated guidelines. Emerald Insight, 116(2), 1–20. https://doi.org/10.1108/IMDS-09-2015-0382
  19. Hermawan, E. (2023). Competitive strategy , competitive advantages , dan marketing performance pada e-commerce Shopee Indonesia. Jurnal Kewirausahaan Dan Multi Talenta (JKMT), 1(1), 1–13. https://doi.org/https://doi.org/10.38035/jkmt.v1i1
  20. Hitt, M. A., Hoskisson, R. E., & Ireland, R. D. (2007). Management of strategy: Concepts and cases. Thomson/South-Western.
  21. Indah, F. R., & Kurniawan, D. (2023). Pengaruh orientasi kewirausahaan terhadap kinerja usaha dengan strategi pertumbuhan usaha sebagai variabel intervening. Jurnal Dinamika Manajemen, 11(2), 65–75. https://doi.org/10.22437/jdm.v11i2.24101
  22. Islami, X., Mustafa, N., & Topuzovska Latkovikj, M. (2020). Linking Porter’s generic strategies to firm performance. Future Business Journal, 6, 1-15. https://doi.org/10.1186/s43093-020-0009-1
  23. Kaemmerer, L. (1996). Benchmarking : Achieving the best in class. National Renewable Energy Laboratory, 1–5. https://www.nrel.gov/docs/legosti/old/21119.pdf
  24. Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard – Measures that drive performance the balanced scorecard — Measures. Harvard Business School Publishing, 70–80. https://hbr.org/1992/01/the-balanced-scorecard-measures-that-drive-performance-2
  25. Kasasi, J. L. (2018). Influence of competitive position on growth strategies among manufacturing companies In Nakuru County, Kenya. https://api.semanticscholar.org/CorpusID:169468427
  26. Kim, W. C., & Mauborgne, R. (2005). Blue ocean strategy: How to create uncontested market space and make competition irrelevant. Harvard Business School Press.
  27. Kotler, P., & Keller, K. L. (2012). Merketing management 14 Edition. In Pearson Education, Inc. (14th ed.). Routledge. https://doi.org/10.4324/9780080886114
  28. Lampung, B. (2023a). Berita resmi statistik pertumbuhan ekonomi lampung semester II 2023. BPS Provinsi Lampung, 7, 1–52.
  29. Lampung, B. (2023b). Statistik Daerah Provinsi Lampung 2023. BPS Provinsi Lampung, 1–41.
  30. Lopes, J. M., Gomes, S., Oliveira, J., & Oliveira, M. (2022). International open innovation strategies of firms in European Peripheral Regions. Journal of Open Innovation: Technology, Market, and Complexity, 8(1), 7. https://doi.org/10.3390/joitmc8010007
  31. McAfee, A., & Brynjolfsson, E. (2017). Machine, Platform, Crowd: Harnessing Our Digital Future. W. W. Norton & Company.
  32. Noviyana, D., & Sitorus, R. R. (2023). Performance with digital marketing as moderating variable pengaruh competitive advantage dan digital business strategy terhadap financial performance dengan digital marketing sebagai variabel moderasi. Management Studies and Entrepreneurship Journal, 4(2), 1288–1304. https://doi.org/10.37385/msej.v4i2.1662
  33. Nowira, P. A., & Sari, R. P. (2021). Strategi persaingan Jamu Gunanty menggunakan matriks: internal eksternal, bowman strategy, grand strategy dan profil kompetitif. JISI: Jurnal Integrasi Sistem Industri, 8(2), 53. https://doi.org/10.24853/jisi.8.2.53-64
  34. Nuvriasari, A. (2015). Peran orientasi pasar, orientasi kewirausahaan dan strategi bersaing terhadap peningkatan kinerja UKM. Ekuitas: Jurnal Ekonomi Dan Keuangan, 9(2), 241–259. https://doi.org/10.24034/j25485024.y2015.v19.i2.88
  35. Porter, M. E. (1979). How competitive forces shape industry. Harvard Business Review. https://hbr.org/1979/03/how-competitive-forces-shape-strategy
  36. Porter, M. E. (1980). Competitve strategi: Techniques for analyzing industries and competitors. In Competitive Strategy Techniques for Analyzing Industries and Competitors. Free Press.
  37. Porter, M. E. (1996). What Is Strategy? Harvard Business Review, 61–78. https://hbr.org/1996/11/what-is-strategy
  38. Porter, M. E., & Kramer, M. R. (2011). Creating shared value. Harvard Business Review, 8(1–2), 1–17. https://doi.org/10.32591/coas.ojss.0201.04037b
  39. Prisilla, G., & Bimo, I. D. (2022). Dampak strategis pertumbuhan internal dan ekternal terhadap kinerja perusahaan pasca IPO. Jurnal Akuntansi, 16(1), 121–140. https://doi.org/https://doi.org/10.25170/jara.v16i1.3272
  40. Ramdani, D., Primiana, I., Kaltum, U., & Azis, Y. (2018). Business growth strategy on Telco Indonesia through dynamic capability and supply chain management with competitive strategy as driver factor. Academy of Strategic Management Journal, 17, (1). https://api.semanticscholar.org/CorpusID:55972108
  41. Rožman, M., Tominc, P., & Štrukelj, T. (2023). Competitiveness through development of strategic talent management and agile management ecosystems. Global Journal of Flexible Systems Management, 1-21. https://doi.org/10.1007/s40171-023-00344-1
  42. Sarwoko, E. (2016). Growth strategy as a mediator of the relationship between entrepreneurial competencies and the performance of SMEs. Journal of Economics, Business, and Accountancy Ventura, 19(2), 219–226. https://doi.org/10.14414/jebav.v19i2.460
  43. Schiavone, F., Pietronudo, M. C., Sabetta, A., & Ferretti, M. (2022). Total quality service in digital era. The TQM Journal, 35(5), 1754-2731. https://doi.org/10.1108/TQM-12-2021-0377
  44. Suharti, E., Zatira, D., Hamdani, H., & Hendarji, Y. (2022). Strategi bisnis dalam menentukan kinerja keuangan perusahaan properti di Indonesia. Jurnal Ekonomi, 17(3), 380–398. https://doi.org/http://dx.doi.org/10.24912/je.v27i3.1182
  45. Suzan, L., & O, H. R. (2021). The Influence of competitive strategy on corporation performance. Jurnal Akuntansi, 15(2), 168–185. https://doi.org/http://dx.doi.org/10.24912/ja.v25i2.804
  46. Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1093/0199248540.003.0013
  47. Tewal, B. (2010). Pengaruh strategi bersaing dan inovasi terhadap kinerja perusahaan perhotelan di Sulawesi Utara. Jurnal Aplikasi Manajemen, 8(2), 464–470. https://jurnaljam.ub.ac.id/index.php/jam/article/view/345
  48. Uchegbulam, P., Akinyele, S., & Ibidunni, A. (2015). Competitive strategy and performance of selected SMEs in Nigeria. In International Conference on African Development Issues: Social and Economic Models for Development Track, 3(2) 326-333.
  49. Wirtz, J., & Lovelock, C. (2021). Services marketing: People, technology, strategy. World Scientific. https://doi.org/10.1142/y0024
  50. Zainurrafiqi, & Amar, S. S. (2021). Pengaruh innovation capability dan blue ocean strategy terhadap competitive advantage dan business performance. Assyarikah, 2(2), 73–100. http://dx.doi.org/10.28944/assyarikah.v2i2.438

Shirkah: Journal of Economics and Business
Published by Faculty of Islamic Economics and Business (FEBI)
Institut Agama Islam Negeri Surakarta, Indonesia
Jln. Pandawa No. 1, Pucangan, Kartasura, Central Java, Indonesia, 57168
Phone: +62271-781516
Website: http://shirkah.or.id/new-ojs/index.php/home
Email: shirkahiainsurakarta@gmail.com

P-ISSN :2503-4235 | E-ISSN : 2503-4243

This ejournal system and it's contents licensed under
a Creative Commons Attribution-NonCommercial 4.0 International License