Competitive Advantage Drives Clove Marketing Performance in Semarang
A 2026 study published in the International Journal of Asian Business and Management reveals that competitive advantage and marketing efficiency significantly improve the marketing performance of clove businesses in Gebugan Village, Bergas District, Semarang Regency. The research was conducted by Viery Setiaji and Ari Siswati from Ngudi Waluyo University, Semarang. Their findings show that while entrepreneurial orientation plays a role, competitive strength and efficient distribution systems are the dominant drivers of business success in rural agricultural markets.
The study was received in December 2025 and accepted in February 2026. It highlights an urgent issue in Indonesia’s agricultural economy: strong production capacity does not automatically translate into strong marketing performance. Clove farmers in Gebugan Village face price volatility, dependence on intermediaries, and limited innovation. These constraints reduce farmers’ bargaining power and income stability.
Why Clove Marketing Matters
The agricultural sector remains a backbone of Indonesia’s rural economy. Cloves are a strategic commodity used in the food, spice, and tobacco industries. However, long distribution chains and weak market access often prevent farmers from capturing fair value.
In Gebugan Village, most farmers sell dried cloves to village collectors or traveling traders. This traditional system limits price transparency and reduces profit margins. Improving marketing performance is therefore essential not only for business sustainability but also for farmer welfare.
How the Study Was Conducted
Viery Setiaji and Ari Siswati used a quantitative survey approach. The research was carried out from November 2025 to January 2026.
Key methodological details:
- Location: Gebugan Village, Bergas District, Semarang Regency
- Respondents: 97 clove business actors
- Sampling method: Purposive sampling
- Data collection: Questionnaires using a 1–5 Likert scale
- Analysis tool: SmartPLS 3.0 (Partial Least Squares Structural Equation Modeling)
The researchers examined three main variables:
- Entrepreneurial Orientation
- Marketing Efficiency
- Competitive Advantage
These variables were tested against Marketing Performance as the outcome variable.
Key Findings
The statistical model explains a substantial portion of marketing performance variation. The R-Square value reached 0.677, meaning 67.7% of marketing performance is influenced by the three variables studied.
1. Competitive Advantage Has the Strongest Impact
- Path coefficient: 0.682
- T-statistic: 6.868
- P-value: 0.000
Competitive advantage shows the most dominant influence. Businesses that maintain high product quality, apply competitive pricing, and expand market access achieve higher sales and profitability.
2. Marketing Efficiency Positively Affects Performance
- Path coefficient: 0.436
- T-statistic: 4.135
- P-value: 0.000
Reducing marketing costs, shortening distribution channels, and improving pricing strategies directly increase marketing performance.
3. Entrepreneurial Orientation Shows a Significant but Negative Effect
- Path coefficient: -0.324
- T-statistic: 2.864
- P-value: 0.004
Interestingly, entrepreneurial orientation—measured through innovation, risk-taking, and proactiveness—has a negative but statistically significant effect. This suggests that in small-scale agricultural businesses, aggressive entrepreneurial strategies may reduce performance when not supported by adequate resources, managerial skills, or market readiness.
Why Competitive Advantage Matters Most
The findings reinforce strategic management theory. Businesses with stronger differentiation, better pricing control, and wider networks outperform competitors.
Viery Setiaji of Ngudi Waluyo University explains that competitive advantage transforms production capacity into measurable sales growth. Without product differentiation or strategic pricing, innovation alone cannot secure market expansion.
Ari Siswati from Ngudi Waluyo University emphasizes that efficiency and competitive positioning must support entrepreneurial initiatives. When innovation is not aligned with distribution systems and market demand, it may increase risk rather than profit.
Integrated Strategy for Rural SMEs
The study confirms that marketing performance does not depend on a single factor. It results from the interaction between internal entrepreneurial behavior and external market strategy.
When:
- Entrepreneurial orientation is balanced with capability
- Marketing channels are efficient
- Competitive advantage is clearly defined
Clove businesses achieve stronger sales growth, market share expansion, and long-term sustainability.
The model demonstrates strong predictive ability, indicating that strategic integration is essential for agricultural SMEs.
Implications for Farmers and Policymakers
The findings offer practical guidance:
- For Farmers: Focus on product quality consistency, pricing strategy, and broader market networks.
- For Local Government: Support shorter supply chains and improve market transparency.
- For Agricultural Cooperatives: Develop collective branding and distribution efficiency.
- For Researchers: Expand future studies to include digital marketing adoption and financial access variables.
Strengthening competitive advantage and marketing efficiency can improve rural income stability and reduce dependence on intermediaries.
Author Profiles
Ari Siswati, S.E., M.M. Ngudi Waluyo University, Semarang
Source
DOI: https://doi.org/10.55927/ijabm.v5i1.2
Official URL :https://journalijabm.my.id/index.php/ijabm/index
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