The Effect of The Resources and Capabilities to Competitive Advantage and Company's Performance of "Batik" Micro

Abstract

This study aims to demonstrate and explain the effect of the resources and capabilities to competitive advantage and company's performance in a comprehensive. This research use quantitative methods with positivism approach using associative research type. Total sample 255 companies. Data analysis using SEM (Structural Equation Modelling). The result show that the resources are valuable and rare has an effect significantly to competitive advantage and company's performance. While the company's capabilities are valuable, rare and inimitable does not affect to the competitive advantage but has an effect significantly to company's performance. This study measure the company's performance by combining the perspective of the resources, capabilites and competitive advantage on batik micro in Madura Island, Indonesia.