The Effect of Social Capital and Organizational Health on Competitive Advantages of Culinary and Craft SMEs in Samarinda City

Abstract

Samarinda City was appointed as a buffer for the new capital city of Indonesia through culinary and craft SMEs. Culinary and craft SMEs are believed to be the drivers in accelerating the achievement of Sustainable Development Goals (SDG), which are part of the strategy of the Provincial Government of East Kalimantan. Even so, 72% of the problems culinary and craft SMEs face in Samarinda City are related to competitive advantages. Culinary and craft SMEs in Samarinda City are still constrained by competitive disadvantage, especially in the non-substitutable resource aspect. This study aimed to analyze the effect of organizational capital and health on competitive advantage, especially in the era of post-COVID-19 economic recovery through the creative economy. This study used a survey method with a quantitative approach. The analysis techniques used were descriptive analysis and factor analysis using structural equation modeling with item parceling. The subjects of this study were SMEs in the culinary and craft sub-sector in Samarinda City (N = 365 SMEs). This study found that social capital and organizational health positively and significantly affect competitive advantage, both partially and simultaneously. Surprisingly, the dimension of work culture and climate s not suitable for modeling the impact of social capital and organizational health on the competitive advantage of culinary and craft SMEs in Samarinda City. This research is expected to contribute theoretically to developing a new model to achieve optimal competitive advantage through social capital and health organizations. This research is expected to strengthen the people’s economy to achieve SDGs through SMEs, especially for Samarinda City, a buffer for the new capital city of the Republic of Indonesia and post-COVID-19 economic recovery through the creative economy.