<![CDATA[This study aims to comprehensively analyze the influence of productivity, digital marketing, and operational costs on competitive advantage at Lilin Thrifting Store, a micro, small, and medium enterprise (MSME) located in Brebes Regency, Indonesia. In the current business environment characterized by intense competition and rapid technological development, MSMEs must adopt strategies that not only increase efficiency but also strengthen their competitive positioning. A quantitative research method was applied, employing a survey approach to obtain primary data from both customers and business managers. A total of 100 respondents participated in this study, selected through purposive sampling to ensure relevance to the research objectives. Data were collected via structured questionnaires and analyzed using multiple linear regression to determine the magnitude and direction of the relationships among the variables.The results reveal that productivity exerts a positive and significant effect on competitive advantage, indicating that improvements in work efficiency, service quality, and resource utilization directly enhance the store’s ability to compete in the market. Similarly, digital marketing demonstrates a positive and significant effect, highlighting the role of social media engagement, online advertising, and e-commerce platforms in expanding market reach and increasing brand visibility. Conversely, operational costs show a negative and significant effect on competitive advantage, suggesting that excessive or poorly managed expenditures can undermine profitability and weaken market standing. These findings underscore the importance for MSME actors, particularly in the retail and secondhand clothing sectors, to prioritize strategies that enhance productivity and maximize the potential of digital marketing while maintaining strict control over operational expenses. The practical implication is that sustainable competitive advantage can be achieved through a balanced approach that integrates internal efficiency, technological adaptation, and cost-effectiveness.]]>
