The Effect Of Competitive Advantage Strategy On The Competitiveness Of Cracker Msmes In Tlasih Village, Tulangan District, Sidoarjo Regency

Abstract

This study aims to analyze the influence of low-cost strategies, differentiation strategies, and focus strategies on the competitiveness of cracker MSMEs in Tlasih Village, Tulangan District, Sidoarjo Regency. The study used a quantitative approach with multiple linear regression. The study population consisted of 40 cracker MSMEs, while the sample selection used purposive sampling based on the criteria of businesses having a formal organization in decision-making. The low-cost strategy variable was measured through production cost efficiency, raw material control, production scale, and competitive prices; the differentiation strategy variable through innovation, quality, packaging, and brand image; the focus strategy variable through segmentation, specialization, and special services; while the competitiveness variable through sales, market share, customer loyalty, and business sustainability. The regression results showed R of 0.789 and R² of 0.622. The simultaneous test produced F (3,12) = 6.593 with p = 0.00699, so that the three strategies together had a significant effect on competitiveness. However, partial testing showed that low-cost, differentiation, and focus strategies were not yet significant at the 5 percent level. These findings suggest that MSME competitiveness is better understood as the result of a complementary strategic configuration rather than a single strategy. The research implications emphasize the integration of cost efficiency, value differentiation, market segmentation, and simple digitalization as the basis for strengthening the competitiveness of Tlasih Village's cracker MSMEs.