Business Agility and Competitive Advantage of SMEs in Makassar City, Indonesia

Abstract

Corporate agility will encourage companies and economic enterprises to respond quickly to the dynamics of internal and external changes in the company. This study aims to analyze the effects of business innovation, CSR implementation, and digital transformation in improving business agility, with competitive advantage as a mediating variable. This study uses a quantitative approach with a survey method. Data were obtained through questionnaires distributed to 100 business units and SMEs as respondents in Makassar City. The results show that competitive advantage, digital transformation, and business innovation have a significant effect on business agility with a coefficient of determination of 72.4%, while CSR implementation and digital transformation have a negative correlation with SME business agility. Digital transformation, CSR implementation, and business innovation affect competitive advantage with a value of 53.9%, while digital transformation, CSR implementation, and business innovation affect business agility through corporate image. This study recommends the use of digital transformation and business innovation for small and medium enterprises (SMEs) to respond and adapt with business agility in Makassar City, Indonesia.