Al-Kharaj: Journal of Islamic Economic and Business
Vol. 8 No. 1 (2026): All articles in this issue include authors from 3 countries of origin (Indonesi

Innovation And Branding Strategy Of Local Food MSMES To Increase Competitiveness In Kupang City

Enike Tje Yustin Dima (Unknown)
Agnes Susanti Indrawati (Unknown)
Maximilianus Paulus Jati Gamatara (Unknown)



Article Info

Publish Date
02 Mar 2026

Abstract

Objective: This study examines how product innovation and branding strategy influence the competitiveness of local food MSMEs in Kupang City, with e-commerce adoption positioned as a mediating variable. Design/Methods/Approach: A quantitative approach was employed using SEM-PLS based on survey data from 258 local food MSMEs in Kupang City collected through purposive sampling. Findings: Product innovation and branding strategy have positive and significant direct effects on MSME competitiveness. Branding strategy has a strong and significant effect on e-commerce adoption, while product innovation does not. E-commerce adoption does not significantly affect competitiveness and does not mediate the relationships between innovation/branding and competitiveness. Originality/Value: This study integrates product innovation, branding strategy, and e-commerce adoption in a single empirical model for local food MSMEs, providing evidence from an underexplored regional context (Kupang City, East Nusa Tenggara). Practical/Policy implication: MSME development programs should prioritize innovation and branding assistance, while digital interventions should focus on improving digital readiness (skills, logistics, and infrastructure) so e-commerce can contribute effectively.

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Journal Info

Abbrev

alkharaj

Publisher

Subject

Economics, Econometrics & Finance

Description

Al-Kharaj, Journal of Islamic Economic and Business is peer-reviewed journal published by program studi ekonomi syariah , Institut Agama Islam Negeri (IAIN) Palopo. Al-Kharaj focus on the research of Islamic Economic and Business. The aims of this journal is to explore and develop economic related ...