STRATEGY TO INCREASE COMPETITIVE ADVANTAGE: MARKET ORIENTATION, MARKETING STRATEGY AND PRODUT INNOVATION AS MEDIATION VARIABLES FOR THE STUDY OF THE MSME SECTOR IN PEKANBARU CITY

Abstract

This study aims to measure the effect of market orientation, marketing strategy, and product innovation as mediating variables on the strategy to increase competitive advantage in the MSME sector moving in the culinary field in Pekanbaru City. This study uses a quantitative approach where primary data is collected through a survey of 100 respondents, and the statistical technique Partial Least Square (PLS) is used to process the data. The study's results confirm a significant effect of market orientation on product innovation and competitive advantage, both direct and indirect impact through product innovation mediating variables. The marketing strategy variable has a direct influence on the product innovation variable. Still, the marketing strategy variable does not directly affect the competitive advantage variable, but some other factors or variables affect the competitive advantage variable. In the indirect effect through the product innovation mediating variable, the marketing strategy variable has an indirect impact on competitive advantage.