Indonesian Journal of Law and Economics Review
Vol 18 No 3 (2023): August
Management Accounting

Driving Business Performance: Cost Leadership and Government Innovation in SME Partnerships
Pengaruh Strategi Kepemimpinan Biaya dan Inovasi terhadap kinerja bisnis UMKM melalui Kemitraan UMKM


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  • Detak Prapanca*,
  • Muhammad Yani,
  • Herlinda Maya Kumala Sari ,
  • Vido Michael Gerung ,
  • Adelia Eva
Detak Prapanca
Universitas Muhammadiyah Sidoarjo, Indonesia *
Muhammad Yani
Universitas Muhammadiyah Sidoarjo, Indonesia
Herlinda Maya Kumala Sari
Universitas Muhammadiyah Sidoarjo, Indonesia
Vido Michael Gerung
Universitas Muhammadiyah Sidoarjo, Indonesia
Adelia Eva
Universitas Muhammadiyah Sidoarjo, Indonesia

(*) Corresponding Author
Picture in here are illustration from public domain image or provided by the author, as part of their works
DOI: https://doi.org/10.21070/ijler.v18i3.939
Published August 15, 2023
Keywords
  • Cost Leadership Strategy,
  • Innovation,
  • SME Business Performance,
  • SME Partnerships,
  • Indonesia
How to Cite
Detak Prapanca, Yani, M., Sari , H. M. K., Gerung , V. M., & Eva, A. (2023). Driving Business Performance: Cost Leadership and Government Innovation in SME Partnerships. Indonesian Journal of Law and Economics Review, 18(3). https://doi.org/10.21070/ijler.v18i3.939

Copyright (c) 2023 Detak Prapanca, Muhammad Yani, Herlinda Maya Kumala Sari , Vido Michael Gerung , Adelia Eva

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

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Abstract

This quantitative study aims to analyze the influence of Cost Leadership Strategy and government-led innovations on business performance through SME partnerships in the Food and Beverage sector. Conducted in the Sidoarjo district of Indonesia, with a population of 49 SME groups, the research utilized a saturated sampling technique and employed a structured questionnaire to gather data. Using SEM PLS analysis, the results indicate that the Cost Leadership Strategy accounts for 44% of the business performance variance, while innovation through partnerships drives an impressive 86% impact on business performance. The findings underscore the significance of strategically fostering sustainable business performance, highlighting the role of the government in supporting SME partnerships to achieve growth and efficiency in the global marketplace.

Highlights:

  • Cost Leadership Strategy: Examining the impact of cost-focused approaches on SME business performance.
  • Innovation in SMEs: Understanding how innovative practices contribute to business growth.
  • Partnerships for Success: Analyzing the role of SME collaborations in driving sustainable business outcomes.

Keywords: Cost Leadership Strategy, Innovation, SME Business Performance, SME Partnerships, Indonesia.

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