The Link between Business Strategy, Competitive Advantage and Firm Value Msme's Constructions and Real Estate during COVID-19 Pandemic in Indonesia

Abstract

Construction and real estate SMEs are the contributors to economic development in Indonesia. This means the company must set its business strategy, so that its business continues to grow in the future, even though the company is a small and medium business. This study was conducted to know the relationship between business strategy and competitive advantage on firm value in construction and real estate MSMEs in Indonesia during the COVID-19 pandemic. The sample selection technique uses simple random sampling, which is a sampling technique from the population that is carried out randomly without seeing and paying attention to the similarities or strata that exist in the population. The analytical method in this study uses the Partial Least Square (PLS) method through a variance-based structural equation model (SEM) statistical test tool. The test results of this study found that business strategy and competitive advantage had a positive and significant impact on the firm value of SMEs construction and real estate services in Indonesia. The ability of the control variable to influence the relationship between the independent and dependent variables is also proven to be strong to contribute statistically. This finding can be used as knowledge of strategic management and management accounting in the future, especially about company value in MSMEs in construction and real estate services in Indonesia.