Citation

Paulus, Ardianus Laurens (2026) Proactive Strategies, Absorptive Capacity and Competitive Advantage of Small and Medium Enterprise (SMEs) firms in East Java Indonesia. International Journal of Management Finance and Accounting, 7 (1). p. 344. ISSN 2735-1009

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Abstract

Proactive strategy and absorptive capacity are crucial components in building a competitive advantage, particularly in the Small and Medium Enterprise (SMEs) sector. This study examines the moderating role of absorptive capacity in strengthening the relationship between proactive strategy and competitive advantage among SMEs in East Java, Indonesia. The sampling technique employed was non-probability sampling, specifically a purposive sampling method, involving 65 SME owners as respondents. Data were collected through surveys and analyzed using Smart PLS. The findings reveal that a proactive strategy significantly positively affects competitive advantage, and absorptive capacity reinforces this relationship. This research provides theoretical contributions and practical implications for SMEs to remain competitive in dynamic markets, offering new empirical evidence on the moderating role of absorptive capacity in the context of Indonesian SMEs, which has been rarely explored in prior studies.

Item Type:	Article
Uncontrolled Keywords:	Proactive Strategy, Absorptive Capacity, Competitive Advantage, Small and Medium Enterprises (SMEs)
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD2321-4730.9 Industry > HD2340.8-2346.5 Small and medium-sized businesses, artisans, handicrafts, trades
Divisions:	Others
Depositing User:	Ms Suzilawati Abu Samah
Date Deposited:	08 Jul 2026 07:44
Last Modified:	08 Jul 2026 07:44
URII:	http://shdl.mmu.edu.my/id/eprint/16266

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