Effect of Entrepreneurial Competency on Competitive Advantage and Marketing Performance in Micro, Small and Medium Enterprises of Seaweed Processing

Indonesia has a very abundant seaweed resource and is a major producer of world seaweed. However, Indonesia still sells more seaweed without being processed. It is only dried seaweed which has very low value compared to when it is processed. This study aims to examine and analyze the effect of entrepreneurial competency on competitive advantage and marketing performance on Micro, Small, and Medium Enterprises (MSME) processing seaweed in South Sulawesi Province. Population in this research is all owner/manager at Micro, Small, and Medium Enterprises (MSME) of seaweed processing in South Sulawesi Province fulfilling criteria according to Law Number 20 Year 2008 regarding Micro, Small, and Medium Enterprises (MSME). Owners/managers are selected because they know best the strategies implemented by MSMEs. The total samples of this study are 158 respondents. Besides, the analysis method used Structural Equation Model (SEM) by utilizing AMOS and SPSS program. The results of the study find that entrepreneurial competency positively and significantly gives effect on competitive advantage. The better the entrepreneurial competency of an entrepreneur, the more increasing the competitive advantage will be. Entrepreneurial competency has a direct positive and insignificant influence on marketing performance. It is because the reliable entrepreneurial competency that an entrepreneur possesses will drive to increase marketing performance.