Competitive Sustainability of Food and Beverage SMEs in South Sulawesi

Abstract

The study is aimed to identify and solve the problems of why the food and beverage SMEs in South Sulawesi are not able to have a longer sustainability in comparison to the large one and how an integrated model of the sustained competitive advantage is built for SMEs of food and beverage should be built. On the basis of theoretical and empirical findings from many cases in the world, the study identifies four latent variables measured by nineteen indicators possibly affecting the sustainability of food and beverage SMEs in the South Sulawesi. With the use of theoretical approach, the identified four latent variables are constructed resulting six hypotheses. Firstly, the latent variable of the product is related to two latent variables that are the business-specific condition and the sustainable competitive advantage. The latent variables of the process-specific condition are associated with three latent variables that are the product-specific condition, the business-specific condition, and the sustained competitive advantage. The last is the latent variable of the businessspecific condition is related to the sustained competitive advantage. Each latent variable studied is reflected by indicators and the whole the fourth latent variables are measured by 19 indicators.

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