Antecedent Factors of Competitive Advantage and its Impact on Performance

The endurance of small and medium enterprises (SMEs) contributed in each the traditional and modern sectors that successively that affect national development. However, they still encountered a growing challenge, expressly since the Indonesian government signed an agreement with Association of Southeast Asian Nations Economic Community (AEC). The agreement forced small and medium-sized enterprises to form their development and creative thinking amidst serious challenge. The point of this examination was to get a clarification of elements influencing the aggressiveness of SMEs and the impact competitive advantage on business performance. The respondents SME's in Kudus City diagrammatic by the embroidery business owners that since three years before they need fully fledged the decreasing in profit. They expressed their response to research variables like competitiveness, orientation, adaptability, internal resources, and performance. The utilization of structural equation modeling (SEM) was required to inspect the connection among components and the direct/indirect effect from exogenous elements to endogenous elements with the assistance of AMOS programming. The outcomes demonstrated that the capability to evolve to business conditions and internal resource affected their business position. Finally, the pioneering introduction of an entrepreneur, SMEs competitive advantage and internal assets (budgetary, physics, human being and nature) affect the business performance exactly.