RESPONSIBLE ENTREPRENEURSHIP VISION DEVELOPMENT AND ETHICS

Effect of core competence on sustainable competitive advantages of batik Banyumas Small… 131
Conclusion
This study provides empirical evidence of the relationship between core competence, competitive
advantage and organizational performance. We consider core competence to be a vital
determinant of competitive advantage and organizational performance. The study provides
empirical evidence of the effects of core competence on competitiveness of batik banyumas
industry. Study confirm that all three dimensions of core competence (relationship competence,
adaptation competence and innovation competence) were significant in explaining firm’s
competitiveness. This current study also find that competitiveness of batik indutry effect on
firm’s performance. Therefore, BBSMEs owners can use the current findings to develop strategies
that deepen competitive advantage and enhance organizational performance. The current
findings may be used by managers to differentiate themselves in a competitive batik
banyumas industry marketplace. To remain competitiveness and obtain sustainable competitive
advantages, owners of BBSMEs can try to increase organizational performance by managing
each dimension of core competence i.e. relationship competence, adaptation
competence and innovation competence in the context of BBSMEs.
This implies that the BBSMEs could improve their sustainable competitive advantages
by enhancing its competitiveness and its performance following the resources based view theory.
In designing strategy for improving the SME business performance, limitations of the
study should be noted. Further studies on these issues are hoped to taken care of these study
limitations. This study only investigated variables from internal side of a company, while none
of the external variables such as business environment and governmen’s support was investigated.
Another limitation of this study is we only used limited BBSMEs in Barlinmascakeb
area, so its finding cannot be generalization for batik industry in another place and country.
Acknowledgement
The authors gratefully acknowledge financial support from Higher Educational Directorate,
Ministry of National Education, Republic of Indonesia by 2015 National Strategic Research
Grant Program by title: Model Peningkatan Daya Saing Berkelanjutan Industri Batik Melalui
Perbaikan Kompetensi Inti Dan Rantai Nilai Dalam Mendorong Pengembangan Industri Kreatif
Lokal Di Kabupaten Banyumas (No: 0094/E5.1/PE/2015). We also thank to anonymous
reviewers and review editor for valuable suggestions.
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