This study aims to observe the effect of transformational leadership on competitive advantage mediatedby product innovation performance with the research object of MSMEs on e-commerce platforms. MSMEs on ecommerceplatformsareoneofthemostpopulartypesofbusinessesinIndonesiatodayandcontinuestogrow.Inthisstudythedataobtainedbydistributingquestionnairestoresearchrespondents,namelyMSMEmanagersonthee-commerceplatformasmanyas200respondents.ThedataobtainedwerethenprocessedusingdataanalysistechniqueswiththePLSmodel.Theresultsshowthattransformationalleadershiphasaneffectonproductinnovationperformance,buthasnoeffectoncompetitiveadvantage.Inthisstudyalsofoundthattheperformanceofproductinnovationhasaneffectoncompetitiveadvantage.Inthisstudyalsofoundthatthereisaperfectmediatingeffectofproductinnovationperformanceontheeffectoftransformationalleadershiponcompetitiveadvantage.
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