West Science Journal Economic and Entrepreneurship
Vol. 4 No. 01 (2026): West Science Journal Economic and Entrepreneurship

The Role of Product Innovation Mediation in the Relationship between Market Orientation and Competitive Advantage in Culinary Sector MSMEs

Kristian Panjaitan, Feliks Anggia Binsar (Unknown)
Taali, Muhammad (Unknown)



Article Info

Publish Date
28 Feb 2026

Abstract

This study aims to examine the mediating role of product innovation in the relationship between market orientation and competitive advantage among Indonesian culinary sector Micro, Small, and Medium Enterprises (MSMEs). A quantitative research design was employed using survey data collected from 200 MSME owners and managers. The measurement instrument utilized a five-point Likert scale, and data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS 3). The results indicate that market orientation has a significant positive effect on product innovation and competitive advantage. Product innovation also shows a strong and significant influence on competitive advantage, highlighting its role as a key strategic capability in the culinary industry. Furthermore, mediation analysis confirms that product innovation partially mediates the relationship between market orientation and competitive advantage, suggesting that the ability to transform market insights into innovative products strengthens business competitiveness. The findings emphasize the importance of integrating customer focus, competitor awareness, and innovation strategies to achieve sustainable competitive advantage. This study contributes to the literature on strategic entrepreneurship and MSME competitiveness by providing empirical evidence from the Indonesian culinary sector and offers practical implications for business owners and policymakers in promoting innovation-driven development.

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Journal Info

Abbrev

wsee

Publisher

Subject

Economics, Econometrics & Finance

Description

Journal of Economics and Entrepreneurship published since 2023 by Westscience Press. Editors receive scientific articles from research results, surveys, and literature reviews closely related to the Economics and Entrepreneurship sectors. WSJEE is a peer-reviewed and open-access scientific magazine. ...