Sustainable Competitive Advantage in Traditional Textile MSMEs: A VRIO Framework Approach on Medali Mas

Abstract

Research aim: This study aims to analyze the strategic resources of Medali Mas Traditional Weaving MSME using the VRIO framework to identify the sources of sustainable competitive advantage within the traditional textile industry.

Design/Method/Approach: This study uses a qualitative case study approach. Data collection was conducted through in-depth interviews, direct observations, and documentation involving the owner and artisans of Medali Mas MSME in Kediri. The data obtained were then analyzed using the VRIO framework, which consists of valuable, rare, inimitable, and organized resource dimensions.
Research Finding: The findings indicate that Medali Mas has strategic resources that support sustainable competitive advantage, including distinctive handcrafted motifs, weaving expertise, natural dye innovation, and strong cultural heritage values. However, the business still faces challenges related to imported raw materials, limited digital marketing, and manual financial management.

Theoretical contribution/Originality: This study contributes to the development of Resource-Based View (RBV) and VRIO framework literature by emphasizing intangible cultural resources and artisan capabilities as strategic assets in traditional weaving MSMEs.

Practical/Policy implication: The study provides practical insights for traditional textile MSMEs in optimizing strategic resources, strengthening organizational capabilities, and improving sustainable business competitiveness through innovation and digital adaptation.

Research limitation: This research is limited to a single MSME case study and relies primarily on qualitative data, which may limit the generalizability of the findings to other traditional textile industries.