ANALYSIS OF FACTORS AFFECTING SUSTAINABLE COMPETITIVE ADVANTAGE OF SMEs DURING THE COVID-19 PANDEMIC IN PEMATANGSIANTAR CITY

Abstract

Achieving sustainable competitive advantage will be successful for those with competence,

namely someone with the knowledge, skills, and qualities of people that include actions, incentives,

points, and sales actions needed to carry out a profession or activity. Achieving a sustainable

competitive advantage requires the hard work of every SME actor. To face increasingly complex

product competition requires a touch of entrepreneurial orientation, the adoption of qualified

information technology, and the ability to apply a culture of innovation in every line of business. This

study aims to analyze and examine the effect of entrepreneurial orientation, information technology

adoption, and innovation culture on the sustainable competitive advantage of SMEs in

Pematangsiantar City. This study uses a causal quantitative research design. The number of samples

used in this study was 170 SME business actors. The data analysis method used is Partial Least Square

(PLS). The data analysis test tool uses the statistical software Smartpls 3.0. The results of this study

conclude that entrepreneurial orientation, information technology adoption, and innovation culture

have a positive and significant effect on sustainable competitive advantage.