Journal of Entrepreneurship Education (Print ISSN: 1098-8394; Online ISSN: 1528-2651)


Relationship between Cost Leadership Strategy and Differentiation as a SME Recovery Strategy during the Covid-19 Pandemic in Yogyakarta

Author(s): Abdul Ghofar, Muhamad Kundarto, Dyah Sugandini, Bunga Alfausta Amallia, Trisna Adisti

SMEs in developing countries also need the application of e-commerce technology. This study explores the influence of e-commerce adoption in developing countries, especially regarding the extent of e-commerce adoption when viewed through Generic Business strategies. This study used a survey method for 145 SMEs in Yogyakarta and analyzed using a partial least squares approach. The results of this study indicate that the adoption of e-commerce affects the performance of SMEs directly or through a differentiation strategy that makes SMEs able to produce different products/services to improve the performance of SMEs. Business actors in developing countries are currently faced with the challenge of various customer demands and needs, and the cost leadership strategy is considered inappropriate, thus turning it into a differentiation strategy.

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