Strategy of Creating Competitive Advantage Through Product Innovation and Social Media in Improving Marketing Performance of Batik Sme's

Eko Wahyudi

Abstract


Abstract. This study aims to determine the effect of product innovation and social media on marketing performance in Batik MSMEs moderated by competitive advantage. This study uses an explanatory method with a quantitative approach. This study used a sample of 114 Batik MSMEs located in Central Java, including Semarang City, Solo City, Pekalongan City and Rembang Regency, which are quite rapidly developing batik clusters. Samples were taken specifically that met the criteria of operating for at least two years, having a social media account and acting as craftsmen and sellers. The data processed in this study were secondary data and primary data. Primary data was obtained by means of face-to-face interviews directly with Batik MSME owners and the use of Google forms distributed via WhatsApp to distribute questionnaires. While secondary data was obtained from the Cooperatives and MSMEs Office of Central Java Province. Furthermore, the data obtained was analyzed using SPSS 18 software. The results of this study indicate that Product Innovation has a significant positive effect on Competitive Advantage, social media has a significant positive effect on Competitive Advantage, Competitive Advantage has a significant positive effect on Marketing Performance. With the conclusion that product innovation has a greater influence on marketing performance through the competitive advantage moderation channel compared to the direct channel.

Keywords: Product Innovation; Competitive Advantage; Marketing Performance.; Social Media; UMKM


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