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All Journal IQTISHADUNA: Jurnal Ilmiah Ekonomi Kita
Sujani Sujani
Faculty economic & business University of Wijaya Putra
Economics, Econometrics & Finance

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Building the Performance of Surabaya's MSMEs through Competitive Advantage: A Study of Process Innovation and Digital Transformation Sujani Sujani; Dwi Lesno Panglipursari; Mochamad Syaiful Arif
IQTISHADUNA: Jurnal Ilmiah Ekonomi Kita Vol 15 No 1 (2026): IQTISHADUNA: Jurnal Ilmiah Ekonomi Kita-June
Publisher : LPPM ISNJ Bengkalis

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.46367/iqtishaduna.v15i1.2650

Abstract

This study to analyze the influence of process innovation and digital transformation on the performance of MSMEs, with competitive advantage as a mediating variable. The study population was MSMEs assisted by the Surabaya City Trade Office and Cooperatives & Micro Enterprises Office. Primary data were collected through an online questionnaire from 115 respondents and analyzed using the SEM-PLS approach, with the assistance of the SmartPLS application. The results show that digital transformation and competitive advantage have a positive effect on MSME performance. Process innovation does not directly affect performance, but has a positive effect on competitive advantage. Competitive advantage is proven to mediate the relationship between process innovation and performance. These findings provide a theoretical contribution in strengthening the relationship model between innovation, competitive advantage, and performance as proposed in Porter's theory of competitive advantage and organizational innovation theory. Practically, these results serve as a strategic reference for MSMEs in increasing competitiveness through optimizing process innovation and digital transformation
Co-Authors Dwi Lesno Panglipusari Mochamad Syaiful Arif