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p-Index From 2021 - 2026
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All Journal Journal of Innovation in Business and Economics
Intan Novela Qurrotul Aini
Management Department, Faculty of Economics and Business, Universitas Sebelas Maret, Indonesia
Economics, Econometrics & Finance

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Product innovation and business sustainability of MSMEs: The role of competitive advantage and gender Hunik Sri Runing Sawitri; Asri Laksmi Riani; Suryandari Istiqomah; Anastasia Riani Suprapti; Intan Novela Qurrotul Aini; Mugi Harsono
Journal of Innovation in Business and Economics Vol. 10 No. 01 (2026): Journal of Innovation in Business and Economics
Publisher : Faculty of Economics and Business, University of Muhammadiyah Malang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.22219/jibe.v10i01.33232

Abstract

This study investigates how product innovation influences the business sustainability of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, considering competitive advantage as a mediating variable and gender as a moderating variable. Drawing on the Resource-Based View (RBV), the study posits that innovation acts as a strategic internal capability that strengthens competitive advantage and long-term business survival. Data were collected from 91 MSME owners in the Solo Raya region through online and offline surveys and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results reveal that product innovation significantly enhances competitive advantage and business sustainability. Competitive advantage also directly and indirectly contributes to sustainability, confirming its mediating role in the innovation–sustainability relationship. However, gender does not moderate this relationship, indicating that innovative capability and sustainability outcomes are not inherently gendered. These findings highlight the importance of continuous innovation and strategic differentiation for MSME resilience in volatile post-pandemic markets, while emphasizing the need for inclusive policies to ensure equal access to innovation resources for all entrepreneurs.
Co-Authors Anastasia Riani Suprapti Asri Laksmi Riani Hunik Sri Runing Sawitri Mugi Harsono Suryandari Istiqomah