The Role of Product and Marketing Innovation in Enhancing MSME Competitiveness and Economic Growth
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Product Innovation, Marketing Innovation, Competitive Advantage, Startupreneurship, MSMEs
Abstract
MSMEs play an essential role in regional economic growth, but many still face challenges in improving competitiveness in the era of global competition. Therefore, an innovation-based strategic model is needed to strengthen the position of MSMEs in local and regional markets. This study aims to analyse the effect of product and marketing innovation on the competitive advantage of MSMEs and their impact on regional economic growth through a startupreneurship model approach. This type of research is quantitative and associative with an explanatory approach. The population in this study were MSME players in West Java Province, and the sampling technique used was purposive sampling. The sample obtained was 200 respondents. The data collection technique was carried out by distributing structured questionnaires and data analysis using the Partial Least Square Structural Equation Modeling (PLS-SEM) method. The results showed that product innovation and marketing innovation positively affect the competitive advantage of MSMEs, which in turn impacts regional economic growth. The startupreneurship model developed in this The startupreneurship model study provides strategic implications for MSMEs to build sustainable advantages through innovation and market orientation synergy. The findings also offer a theoretical contribution to enriching innovation management studies in the micro, small and medium enterprise sectors.
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