This study examines how Padang City's bakery MSMEs' competitive advantage is impacted by green product innovation and green dynamic capabilities. This research employs a quantitative methodology. 210 MSME actors were given questionnaires to complete in order to collect data. The surveys were subsequently processed using SmartPLS 4.0 software, yielding the following findings: 1) Competitive Advantage is positively and significantly impacted by Green Product Innovation; 2) Green Product Innovation is positively and significantly impacted by Green Dynamic Capability; 3) Green Dynamic Capability is positively and significantly impacted by Competitive Advantage; and 4) Green Dynamic Capability positively and significantly mediates the effect of Green Product Innovation on Competitive Advantage.
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