MARKET ORIENTATION, INNOVATION, AND COMPETITIVE ADVANTAGE: HOW MSMES IN THE SUKABUMI MOCHI INDUSTRY CAN BOOST PERFORMANCE

Abstract

The purpose of this study is to find out how market orientation, innovation, competitive advantage, and the performance of micro, small and medium enterprises (MSMEs) in the Sukabumi Mochi industry correlate with each other. This research investigates how these elements interact and influence the success of small and medium-sized enterprises (MSMEs), especially in the food industry. In the introduction, the importance of strategic business practices to increase turnover is discussed. Competitive advantage is driven by market orientation, which includes focusing on customers, using market information, competitor analysis, and optimization of sales turnover. Competitive advantage is also considered important by innovation, which includes innovative products, processes, and marketing activities. The COVID-19 pandemic is considered a major disruption affecting MSMEs, making an effective business strategy necessary. In addition, there was a discussion about government support for MSMEs during the pandemic, emphasizing how vulnerable small businesses are to outside shocks.  The study used a quantitative approach to analyze data from MSMEs in the Mochi Sukabumi sector. This is done using the structural equation model (SEM). The population consists of 121 MSMEs, and data was collected using Google Forms. The results support several hypotheses: market orientation benefits competitive advantage, market orientation benefits MSME performance, innovation benefits competitive advantage, and competitive advantage benefits MSME performance. According to this study, MSMEs in Mochi Sukabumi can improve their business performance by implementing a market-oriented approach and encouraging innovation. However, research recognizes that not everything can be generalized, and suggests conducting further research taking into account additional factors such as price and product quality.