Resource Orchestration In Island-Based SMES: Achieving Marketing Performance Through Competitive Advantage In Rote Ndao, Indonesia

I Komang Arthana (Universitas Nusa Cendana, Kupang, Indonesia)
Viktorianus M. Da Lopez (Universitas Nusa Cendana, Kupang, Indonesia)
Ni Putu Nursiani (Universitas Nusa Cendana, Kupang, Indonesia)
Yonas Ferdinand Riwu (Universitas Nusa Cendana, Kupang, Indonesia)
Juendiny Chrisna Ekasari (Universitas Nusa Cendana, Kupang, Indonesia)

Greenation International Journal of Economics and Accounting
Vol. 4 No. 4 (2026): Greenation International Journal of Economics and Accounting (September - Octob

This study aims to analyze the mediating role of competitive advantage in the relationship between business network capabilities, human resource competencies, financial factors, and operational factors on the marketing performance of MSMEs in Rote Ndao Regency, Indonesia. The research uses a quantitative approach with survey methods. A sample of 55 MSMEs was selected through proportional stratified random sampling from 11 sub-districts. Data were collected through a structured questionnaire and analyzed using Structural Equation Modeling (SEM) with Partial Least Squares (PLS). The results of the study prove that competitive advantage significantly mediates the influence of four independent variables on marketing performance. Business network capabilities (β=0.568; p<0.001) and operational factors (β=0.662; p<0.001) had the strongest influence in shaping competitive advantage, followed by HR competence (β=0.561; p<0.01) and financial factors (β=0.384; p<0.05). Competitive advantage had a significant effect on marketing performance (β=0.837; p<0.001). The research model was able to explain 69.2% of the variance in MSME marketing performance. Competitive advantage is able to mediate the influence of business network capabilities, human resource competencies, operational factors, and financial factors on marketing performance. This research makes a theoretical contribution by integrating Resource-Based View and Dynamic Capabilities Theory in the context of MSMEs in disadvantaged areas. The findings of the study prove the critical role of competitive advantage as a mediator in transforming the resources and capabilities of MSMEs into improved marketing performance, especially in the unique context of island-based MSMEs in Eastern Indonesia. The findings recommend the importance of an integrated approach that combines strengthening internal capabilities with external network optimization. Special attention needs to be paid to improving digital competence, facilitating financial access, and strengthening local brand identity to achieve sustainable competitive advantage.