Competitive Advantage and Organizational Behavior of Small and Medium Enterprises (SMEs) in the Real Estate Service Business

Abstract

This research aims to study small and medium enterprises (SMEs) in the real estate service business conforming to the ASEAN Economic Community Blueprint, which addresses that the community members must accept a free trade of service businesses such as property management and real estate broker business. The objectives of this study are to examine the relationship between the types of SMEs and their competitive advantage, to study the level of competitive advantage, and to study the relationship between competitive advantage and driver factors. The study uses survey and cross-sectional as well as empirical investigation. A survey and online questionnaire have been conducted to identify the effect of determinants toward competitive advantage. The sample is composed of SMEs in the real estate service business. The study has been tested at an organizational level with samples of SME entrepreneurs, business successors, or board of directors or management team. Quantitative analysis has been conducted through multiple regression analysis with 198 samples. To confirm the findings, the result has been shared and discussed further with stakeholders and scholars from an educational institution. From literature reviews, competitive advantage can be categorized into differentiation and service quality aspects and driver factors with the concept of organization behavior, including organizational leadership, inter-organizational collaboration, technological capability, and organizational responsiveness. Research findings illustrate that each aspect of competitive advantage needs a different set of driver factors to explain either the direct or the indirect effect. Interestingly, technological capability is a perfect mediator of leadership and inter-organizational collaboration toward competitive advantage. Although, service quality is suitable to exploit in any situation, differentiation is suitable to exploit in a highly competitive market which will significantly expand an opportunity for the firm. In additions, service quality is difficult to manage; however, it is considered important to develop a real estate service firm sustainably with the competitive advantage of better service quality.