KAPABILITAS INOVASI DAN ORIENTASI PASAR DALAM MENINGKATKAN KEUNGGULAN BERSAING UMKM DI KECAMATAN SUMBAWA

Abstract

This study aims to determine the effects of innovation capability and market orientation on the competitive advantage of MSMEs in Sumbawa Sub-District, both partially and simultaneously. This study employs an associative research design. The data examined in this study are quantitative data in the form of respondents’ response scores obtained directly from primary sources through questionnaires. The population of this study consists of all MSME owners in Sumbawa Sub-District, totaling 670. The sample size was determined using the Slovin formula, resulting in a total of 87 respondents. The samples were selected using a simple random sampling technique. Data were analyzed using multiple linear regression analysis, partial hypothesis testing (t-test), simultaneous hypothesis testing (F-test), and the coefficient of determination (R²). The results indicate that, partially, innovation capability and market orientation have positive and significant effects on the competitive advantage of MSMEs in Sumbawa Sub-District. This finding is based on the calculated t-value of 7.728 for innovation capability and 8.527 for market orientation, both of which are greater than the critical t-value of 1.989 (7.728 and 8.527>1.989). Simultaneously, innovation capability and market orientation have a significant effect on the competitive advantage of MSMEs in Sumbawa Sub-District, with a calculated F-value of 87.185, which is greater than the critical F-value of 3.105 (87.185>3.105). Innovation capability and market orientation explain 66.7% of the variation in the competitive advantage of MSMEs in Sumbawa Sub-District, while the remaining 33.3% is influenced by other variables not examined in this study.