The cuanki industry in Kampung Cuanki Sukanegla, Garut, faces product homogeneity, price wars, imitation risk, and innovation fatigue due to relatively similar products. This study aims to examine the influence of entrepreneurial knowledge and product innovation on competitive advantage among cuanki business actors in Kampung Cuanki Sukanegla, Garut, using an explanatory quantitative approach. The sample was determined through saturated sampling of the entire population of 62 business owners, with data collected via a Likert questionnaire and analyzed using SEM-PLS with the assistance of SmartPLS. The results show that product innovation has a positive and significant effect on competitive advantage, while entrepreneurial knowledge has a positive but not significant effect. The R-Square value of 0.615 indicates that both variables are able to explain 61.5% of the variation in competitive advantage. These findings indicate that product innovation is more dominant in shaping competitive advantage, so business actors are advised to prioritize strengthening product innovation without neglecting the improvement of entrepreneurial knowledge as a foundation for long-term business management.
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