Proceedings of the 1st Borobudur International Symposium on Humanities, Economics and Social Sciences (BIS-HESS 2019)

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Internal Control SME’s Role Over Their Competitive Advantage and Performance

Authors
Mulato Santosa, Nur Laila Yuliani, Siti Noor Khikmah, Diesyana Ajeng Pramesthi
Corresponding Author
Mulato Santosa
Available Online 4 May 2020.
DOI
10.2991/assehr.k.200529.191How to use a DOI?
Keywords
internal control, competitive advantages, performance, SMEs
Abstract

Internal control in the SME business process is very important so that errors and irregularities that occur immediately can be overcome so that objectives can still be achieved. The control function is one of the management functions that cannot be returned from other management functions (planning, organizing, and directing). However, many studies still doubt the role of internal control on competitive advantage and the performance of SMEs. This study aims to examine the role of internal control on competitive advantage and SME performance. This research was conducted by survey method by distributing questionnaires to the respondents that are SMEs in district of Magelang. The sample size of the study are 210 respondents. Data analysis was performed using WarpPLS 4.0. The results have shown that internal control has a positive effect on competitive advantage (ß=0,41, p<0,01, R2=0,17) and SME performance (ß=0,20, p<0,01, R2=0,04). Relational model among variables has good GoF (APC=0,307, p<0,01; ARS=0,106 p<0,05). The results of this study indicated that internal control plays a role in competitive advantage and SME performance.

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 1st Borobudur International Symposium on Humanities, Economics and Social Sciences (BIS-HESS 2019)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
4 May 2020
ISBN
978-94-6252-961-8
ISSN
2352-5398
DOI
10.2991/assehr.k.200529.191How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Mulato Santosa
AU  - Nur Laila Yuliani
AU  - Siti Noor Khikmah
AU  - Diesyana Ajeng Pramesthi
PY  - 2020
DA  - 2020/05/04
TI  - Internal Control SME’s Role Over Their Competitive Advantage and Performance
BT  - Proceedings of the 1st Borobudur International Symposium on Humanities, Economics and Social Sciences (BIS-HESS 2019)
PB  - Atlantis Press
SP  - 909
EP  - 912
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.200529.191
DO  - 10.2991/assehr.k.200529.191
ID  - Santosa2020
ER  -