The aim of this study was to examine the role of entrepreneurial marketing as a mediating variable in the relationship between environmental turbulence and dynamic capability with sustainable competitive advantage. This study involved 130 craft industries in Malang Regency, Malang City, and Batu City, East Java, Indonesia. Application of loading factor followed by SEM-PLS developed a model showing how environmental turbulence and dynamic capability influence on entrepreneurial marketing which consequently leads to differentiation and performance improvement which are the established indicators of sustainable competitive advantage for the firms. The model was empirically validated using model fit indices and was found satisfacto-ry. The findings show that environmental turbulence did not have any significant relationship with a sustaina-ble competitive advantage. Dynamic capability had a significant relationship with a sustainable competitive advantage. Entrepreneurial Marketing mediates the relationship between environmental dynamic capabilities with sustainable competitive advantage. The analysis shows that highly dynamic capability and entrepreneurial marketing tends to highly sustainable competitive advantage. It indicated that dynamic capability and entrepreneurial marketing offer systematic model for supporting Micro, Small, and Medium Enterprises (MSMEs) to build a well-maintained environment and sustainable competitive advantage.

This research aims to determine: 1) rating of investment attraction based on investor assessment; and 2) the factors which have significant effects on investment attraction of the city. Location research is in Batu city Indonesia with number of samples as 65 investors. The data analysis technique of this study uses a Multiple Regression Analysis. The independent variables used in this study are: 1) infrastructure; 2) labor availability; 3) agglomeration; 4) natural resources, 5) markets; 6) licensing system, and 7) leadership. Investment attraction is indicated with rating assessment by investors. The results show: 1) rating of Batu city investment attraction is high; and 2) licensing system and leadership have significant influences on investment attraction. Based on the result, it is very important for a city to create a conducive climate (pro investment) to attract investors, especially in the ease of the licensing system. In addition, local governments must be able to provide positive signals in the form of commitment for the investment development in Batu city. This is necessary since the city development process really needs investor support.