The Influence of Dynamic Capability on Sustainable Competitive Advantage: An Empirical Study of Small Businesses in Indonesia

The purpose of this research is to determine the role of dynamic capability on the sustainable competitive advantage of small businesses in Palembang Indonesia during the Covid-19 pandemic. This is quantitative research with primary data obtained by distributing questionnaires to 50 Small and Medium Enterprises (SMEs) in the food and beverage (F&B) and clothing industry. The obtained data was analyzed using the Path Analysis supported by Smart PLS software. Path analysis is a form of multiple regression statistical analysis used to assess causal models by analyzing the relationships between a dependent variable and two or more independent variables. In this study dynamic capability is the independent variable, entrepreneurial marketing is the mediator variable, and sustainable competitive is the dependent variable. Path analysis is also used to predict the significance and centrality of hypothesized causal associations between various sets of variables. Furthermore, the data was processed in two stages, the first is the validity and reliability used to estimate the testing stage, while the second is the structural model, which analyzes the effect or relationship between f-variables utilizing the t-test. The result showed a positive and significant effect on the use of dynamic capabilities to determine sustainable competitive advantage through entrepreneurial marketing as a mediator variable of small businesses in Palembang. KCI Citation Count: 2