Increasingly competitive business conditions require companies to improve their internal capabilities to maintain competitiveness. Company productivity, employee motivation, and design innovation are important factors in creating sustainable competitive advantages. This study aims to analyze the effect of company productivity and employee motivation on company competitiveness with design innovation as a mediating variable at PT Kunci Sukses Sejahtera. This research uses a quantitative approach with data collected through questionnaires distributed to employees. Data analysis was conducted using Partial Least Squares–Structural Equation Modeling (PLS-SEM) with SmartPLS. The results show that company productivity and employee motivation have a positive and significant effect on design innovation and company competitiveness. Furthermore, design innovation has a positive and significant effect on company competitiveness and acts as a mediating variable in the relationship between internal company factors and competitiveness. The study concludes that improving company competitiveness requires effective resource management, strong employee motivation, and continuous development of innovative designs to create added value for consumers
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