MICRO, SMALL AND MEDIUM ENTERPRISE BUSINESS PERFORMANCE: DEVELOPING BUSINESS STRATEGY THROUGH PRODUCT INNOVATION AND SOCIAL MEDIA IN GARUT CITY

• Main Author: RAHMIJATI (29015012), ALPINALIAH
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/25404
• Institution: Institut Teknologi Bandung

Garut is a small city located in West Java province that have been well known for <br /> <br /> its tourism destinantion and traditional culinary for decades. In recent years, along <br /> <br /> with the presence of social media, online transportation application and life style <br /> <br /> change of its younger generation, culinary business flourishing in Garut. Culinary <br /> <br /> as part of fifteen subsector of creative economy is a complex activities where <br /> <br /> preparation, process and serving of food and beverage combines with creativity, <br /> <br /> aesthetics, tradition, local wisdom as important element to enhance taste and <br /> <br /> product value, increasing buying power and experience for consumer. Culinary <br /> <br /> industry in Garut now is in the early stage of become creative industry. Younger <br /> <br /> generation of Micro, Small and Medium Enterprises (MSMEs) culinary in Garut <br /> <br /> owner begin to realize the importance of innovation and social media as important <br /> <br /> part of their business competitiveness in the market. <br /> <br /> This present research is aiming is to investigate relationship between competitive <br /> <br /> advantages of MSMEs culinary in Garut and its influences towards business <br /> <br /> strategy development and business performance. This research also analyze <br /> <br /> product innovation and social media as resource-capabilty source of competitive <br /> <br /> advantage. In order to meet the aims of this research, quantitative study especially <br /> <br /> MSMEs survey has been conducted. The data was taken from MSMEs culinary <br /> <br /> owners in Garut city. The total sample data is 393 in the form of questionnaires. <br /> <br /> The data is analyzed using statictic method; Confirmatory Factor Analysis (CFA) <br /> <br /> and Structural Equation Modelling (SEM). <br /> <br /> The result of this study that there are positive relationship between product <br /> <br /> innovation and social media as competitive advantage of MSMEs in Garut city. <br /> <br /> There is also positive relationship between competitive advantages and business <br /> <br /> strategy development and between business strategy development with business <br /> <br /> performance of MSMEs culinary in Garut.