Develop Competitive Advantages for Msmes Post-Pademi: With A Mediation Approach

Abstract

The purpose of this study was to analyze the effect of marketing, network, and innovation capabilities on competitive advantage, and to analyze the impact of marketing and network capabilities on competitive advantage through innovation capabilities. Data analysis was done using the Partial Least Square (PLS) method using SmartPLS version 3 software. The number of samples in the study was 130 MSME respondents in Medan City. The results of this study are the marketing ability variable, the ability to innovate has a significant effect on the ability to innovate. Marketing ability and innovation ability have a significant effect on competitive advantage. Network capabilities do not have a significant impact on competitive advantage. Innovation ability is able to be a mediating variable between marketing ability and network ability to competitive advantage. Of the 2 control variables used, only one has an effect on competitive advantage, namely gender, while the length of work has no impact on competitive advantage.