Academy of Marketing Studies Journal (Print ISSN: 1095-6298; Online ISSN: 1528-2678)


Ethnocentric Product Advantage: A Perspective of Competitive Advantage in Small and Medium Enterprises (SMEs)

Author(s): Ahmad Hanfan, Ahmad Ikhwan Setiawan and Dr. Hayati Nupus

Ethnicity is the best strategy for mobilizing ethnic groups to achieve organizational goals. Ethnicity consists of ethnic identity as a personal reference, a source of motivation, behavior and social construction to interpret and read people in certain regions. This study aims to build an ethnocentric product advantage model to fill the research gap between innovation capability and marketing performance. Ethnocentric product advantage is the superiority of company product in placing product in the mind of consumer with the aim of being the center of attention of certain ethnic/community group by using distinctive ethnic, unique product and different product. This research model involves a number of other important supporting variables such as product reputation and market orientation to increase SMEs marketing performance. From a population of 140 small and medium sized Batik Salem companies, a total of 114 respondents were selected for the sample to be processed using the AMOS 22.0 analysis tool. Our research show that the level of goodness of fit for the model meets all the condition needed, and all proposed hypotheses are accepted.

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