Journal of Economic Empowerment Strategy (JEES) Vol.
Number 02.
August 2024
THE INFLUENCE OF ENTREPRENEURS ORIENTATION AND
PRODUCT INOVATION ON COMPETITIVE ADVANTAGE OF
CULINARY MSMEs IN BANDUNG CITY Sekar Ayu1.
Keni Kaniawati2 1,2.
Widyatama University.
Indonesia Bandung.
Indonesia m@widyatama.
kaniawati@widyatama.
Abstract The aim of this research is to find out the condition of Entrepreneurship Orientation.
Product Innovation and Competitive Advantage of Culinary MSMEs in the City of Bandung.
Also to determine the influence of Entrepreneurial Orientation and Product Innovation on the Competitive Advantage of Culinary MSMEs in Bandung City, either partially or simultaneously.
The respondents involved in this research were a hundred Culinary MSMEs in the city of Bandung.
The method used to collect samples is a non-probability sampling technique.
Data collection was done with the aid of distributing questionnaires online and the information evaluation method was achieved using multiple linear regression.
The results of this research show that partially Entrepreneurial Orientation and Product Innovation have a positive effect on the Competitive Advantage of Culinary MSMEs in the City of Bandung.
Then, based on the results of the F test, it shows that Entrepreneurial Orientation and Product Innovation simultaneously influence the Competitive Advantage of Culinary MSMEs in the city of Bandung.
Keywords: Entrepreneurial Orientation.
Product Innovation.
Competitive Advantage Introduction MSMEs (Micro.
Small and Medium Enterprise.
are not something new to most people.
MSMEs are not just ordinary businesses but are one of the business fields that contribute to the Indonesian economy.
MSMEs are said to be one of the pillars or backbone of the Indonesian As quoted from the CNBC Indonesia news page Nugroho, .
Minister of Finance Sri Mulyani Indrawati at the BRI Microfinance Outlook 2024 occasion revealed that MSMEs have a very vital function as can be seen from the information that 97% of Indonesian employment is performed by MSMEs.
at some stage in the event.
Sri Mulyani additionally said that MSMEs contributed 61% to Indonesia's GDP.
This is certainly not surprising considering Based on data obtained from the Central Statistics Agency of West Java Province, the number of MSMEs in West Java Province in the last 5 years has increased and also decreased, especially in 2019 to 2021.
This happened because the whole world, including Indonesia, experienced the Covid-19 pandemic, causing many businesses to close due to the implemented health regulations (BPS Jawa Barat, 2024.
According to the latest data in 2022, the number of MSMEs in West Java Province has reached 667,795 business units, an increase of 0.
07% from 2021.
Of the total 667,795 business units spread throughout West Java, the food industry occupies the number one position as the industry that dominates MSMEs in West Java.
The food industry itself has reached 250,155 MSMEs in 2022, which means 37% of MSMEs in West Java are engaged in the food industry (BPS Jawa Barat.
The city of Bandung, which is the center of West Java government, is one of the cities that is popular as a tourist destination.
The city of Bandung is also a city that is quite famous for its culinary delights.
The town of Bandung, followed by Jakarta.
Surabaya.
Padang.
Malang.
Yogyakarta.
Seminyak and Ubud, was named the town with the satisfactory food through the 2023/2024 TasteAtlas Award (Tasteatlas, 2.
According to Tasteatlas, .
Bandung is in 10th position in the world, as a place with the best culinary delights.
Journal of Economic Empowerment Strategy (JEES) Vol.
Number 02.
August 2024 The city of Bandung, which is a tourist city and also has the title of city that has the best food, certainly makes Bandung the most suitable place to build a culinary business.
Based on data taken from the Circuit page belonging to the Bandung City Cooperatives and SMEs Service, the number of MSMEs in Bandung City as of May 2024 is 10,485 with MSME growth at 7.
2% from the previous year, 2023.
Of the many types of MSMEs in the city of Bandung, businesses in the culinary sector again dominate with the number of MSMEs each year being higher than other types of businesses.
Currently, the number of MSMEs in the city of Bandung operating in culinary businesses has reached 4511 businesses at the beginning of 2024 (DISKOPUKM Kota Bandung.
With the increasingly mushrooming number of culinary businesses, competition in this field is very tight.
Forcing business actors to continue to think and continue to provide the latest in order to survive and excel in the competition.
In this era of globalization, business actors must be able to follow trends and always provide the latest innovations to be able to compete.
because now culinary delights are specific and offer the brand new improvements which are often glanced at by the general public.
This causes several businesses that cannot keep up with developments and implement an entrepreneurial orientation attitude to be left behind and lose in the competition.
Researchers have previously conducted a pre-survey and from these results it can be concluded that several MSME culinary phenomena in the city of Bandung are as follows :
The competitive advantage of MSMEs has not been maximized, such as prices that are not very competitive, products that are not yet unique and there are no features that differentiate the business from competitors.
The implementation of product innovation has not been maximized, many MSME players are still not optimum in developing new products so they're now not able to compete, the product lines created aren't yet various and enterprise actors are slow in enhancing products and slow in maintaining up with enterprise trends.
The implementation of entrepreneurial orientation has not been maximized as seen from business actors who are still slow in marketing their businesses, the lack of desire of MSMEs to actively compete and take risks From the explanation above, the gap-research in this study is as follows.
based on previous research conducted by Lestari et al.
, .
Asvia & Supriyanto, .
Annisa et al.
, .
competitive advantage is positively and significantly influenced by entrepreneurial orientation and product innovation.
Meanwhile, according to the reality in the field .
ased on a pre-surve.
, competitive advantage is not positively and significantly influenced by entrepreneurial orientation and product innovation.
Another gap-research that occurs is that there are differences in the results of several previous studies that have been conducted.
According to research conducted by Feranita & Setiawan, .
Cahyani et al.
, .
Batara et al.
, .
stated that entrepreneurial orientation does not affect competitive advantage.
This statement is certainly not in line with research conducted by Lestari et al.
, .
Asvia & Supriyanto, .
Annisa et al.
, .
in the same year.
According to the problem formulation above, there are several goals that researchers want to achieve in this project, namely:Find out how Entrepreneurial Orientation.
Product Innovation.
Competitive Advantage are for Culinary MSMEs in Bandung City.
Knowing the influence of Entrepreneurial Orientation on the Competitive Advantage of Culinary MSMEs in Bandung City.
Knowing the influence of Product Innovation on the Competitive Advantage of Culinary MSMEs in Bandung City and Knowing the influence of Entrepreneurial Orientation.
Product Innovation on Competitive Advantage of Culinary MSMEs in Bandung City.
Method In this research, quantitative research methods are used, namely research methods used to examine a particular population or sample, where the sampling technique used is usually random with the help of research instruments and analysis of quantitative/statistical research data with the aim of testing existing hypotheses.
In this research, researchers used a method, namely a survey using a correlational approach.
in which the information used is primary and secondary, this survey studies design was achieved through gathering facts by offering a list of questions to respondents.
Journal of Economic Empowerment Strategy (JEES) Vol.
Number 02.
August 2024 In this research, the researcher took the research object, namely Culinary MSMEs in Bandung City, with a total of 4511 MSMEs as of May 2024, the majority of which are made up of micro businesses.
This culinary business is spread across all sub-districts in Bandung City, which consists of 30 sub-districts.
Quoted from Damanik, .
The term MSMEs first appeared in 2008 and was then regulated by Law Number 20 of 2008 concerning Small.
Micro and Medium Enterprises.
And to this day.
MSMEs continue to be a topic of conversation in Indonesia because of their contribution to the economy and social welfare.
Research methods are planned, scientific, systematic and rational ways of collecting facts to reveal the truth scientifically in research (Waruwu, 2.
In this study, researchers used a method, namely a survey using a correlational approach.
Where the data used is primary and secondary, this survey research design was carried out by collecting information by providing a list of questions to respondents.
In carrying out research, quantitative methods are used by researchers.
According to Darna & Herlina, .
quantitative research methods are research methods used to research a particular population or sample, where the sampling technique used is usually random with the help of research instruments and analysis of quantitative/statistical research data with the aim of test existing In this research, researchers used two types of data, namely secondary data and primary Primary data is data obtained directly through observation, either in the form of direct observation or with the help of interviews and questionnaires.
Meanwhile, secondary data is data obtained from external sources or not from the field, such as through journals, articles and other external references (Siregar et al.
, 2.
Based on this explanation, the researcher will take primary data from the results of the questionnaire distributed to Culinary MSMEs in Bandung City, supported by the results of direct observations made by the researcher.
And the secondary data was obtained from various journals, articles and previous research that researchers had previously researched and summarized.
With a total population of Culinary MSMEs in Bandung City of 4511.
From this population, researchers used the Slovin formula in determining the number of samples taken, where the number of MSMEs in the Culinary Sector was 4511 MSMEs and the tolerance limit used by researchers this time was 10% .
The results of the Slovin formula calculation for the required sample were 97.
83, which the researchers finally rounded up to 100 samples.
The sampling method used in this studies was stratified random sampling.
This sampling technique was chosen so that the samples taken could represent Culinary MSMEs in Bandung City, considering that Bandung City is divided into 30 sub-districts so that each region is fairly represented.
Figure 1 Bandung City divide by zone Journal of Economic Empowerment Strategy (JEES) Vol.
Number 02.
August 2024 Based on this data, the population of Culinary MSMEs in Bandung City by Zone is.
Zone A 1385 MSMEs.
Zone B 1390 MSMEs.
Zone C 773 MSMEs and Zone D 963 MSMEs.
Which means the percentage of each zone is 30.
7%, 30.
8%, 17.
2%, 21.
3%, which means the number of samples per zone is: Zone A 31 MSMEs.
Zone B 31 MSMEs.
Zone C 17 MSMEs and Zone D 21 MSMEs taken randomly according to category MSMEs in the Culinary sector.
In collecting data for this research, researchers used data collection techniques in the form of filling out a questionnaire .
which contains a number of written questions that must be answered by respondents.
Where in the measurement the researcher used a Likert scale.
Quoted from Pranatawijaya & Priskila, .
the Likert scale is a scale used to measure the attitudes, opinions, perceptions of a person or group towards a social phenomenon or event.
The Likert scale itself is expressed in two forms, namely positive questions to measure positive scales .
cores 5,4,3,2,.
and negative scales to measure negative questions .
,2,3,4,.
Result and Discussion Validity Test According to Sugiyono .
, the Validity Test is carried out to measure whether a questionnaire is valid or not, to find out whether the items asked can reveal what is being studied.
Validity test results are declared valid when r count Ou r table, which means the statement is declared valid or significantly correlated.
However, if the calculated r results O r table then the question is invalid or not significantly correlated.
Table I The result of validity test variable x1 R Table Stats Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Of the 10 questions on the Entrepreneurial Orientation variable, it has a valid status because it has the status r count > r table.
Table II The result of validity test variable x2 R Table Stats Valid Valid Valid Valid Valid Valid Valid Valid Of the 8 questions on the Product Innovation variable, it has a valid status because it has the status r count > r table.
Journal of Economic Empowerment Strategy (JEES) Vol.
Number 02.
August 2024 Table i The result of validity test variable y R table Stats Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Valid Of the 12 questions on the Competitive Advantage variable, it has valid status because it has the status r count > r table.
Reliability Test The Reliability Test according to Sugiyono .
is carried out to evaluate whether the data produced from measurements is consistent or not.
The reliability test can only be carried out if it has passed the validity test and everything is declared valid.
The way to calculate the Reliability Test is to use the Cronbach Alpha formula with criteria.
If the Cronbach Alpha value is Ou 0.
6 then the variable instrument is asserted reliable, if the Cronbach Alpha value is O 0.
6 then the variable instrument is declared unreliable.
Table IV The result of reliability test Variable Cronbach Alpha Stats Entrepreneurship Orientation Reliabel Product Innovation Reliabel Competitive Advantage Reliabel From the results of the tests carried out, all the questions on each variable contained in the questionnaire were declared reliable because the Cronbach Alpha value for each variable was > 0.
so based on this data the measuring instrument used was reliable.
Normality Test Normality testing is to see whether in the regression model, the dependent and independent variables have a normal distribution or not.
The following are the results of the normality test in this Table V The result of normality test One-Sample Kolmogorov-Smirnov Test Unstandardized Residual Normal Parametersa,b Mean Std.
Deviation Absolute Journal of Economic Empowerment Strategy (JEES) Vol.
Number 02.
August 2024 Most Extreme Differences Positive Negative Test Statistic Monte Carlo Sig.
Sig.
99% Confidence Interval Lower Bound Upper Bound Test distribution is Normal.
Calculated from data.
Lilliefors Significance Correction.
Based on 10000 sampled tables with starting seed 2000000.
It can be seen that the results of the normality test show a significance value of 0.
369, so it can be concluded that the research data is normally distributed because the significant value is 369 > 0.
Multicollinearity The multicollinearity test aims to evaluate whether there is a correlation between the independent variables in the regression model.
The desired regression model should not show any correlation between the independent variables.
One method for assessing the presence of multicollinearity in a regression model is to check the tolerance and Variance Inflation Factor (VIF) values.
If the VIF value is < 10 and the tolerance value is > 0.
1, then the model does not experience multicollinearity Table VI The result of Multicollinearity test Coefficientsa Unstandardized Coefficients Model Std.
Error (Constan.
Standardized Coefficients Beta Collinearity Statistics Sig.
Tolerance VIF Dependent Variable: Y Based on the above analysis of the three variables, there is no multicollinearity because all tolerance values are > 0.
1 and the VIF value is < 10.
The entrepreneurial orientation variable is 0.
and product innovation is 0.
574, where the value is greater than 0.
1 so that in each variable there is no multicollinearity.
Then the VIF value of the entrepreneurial orientation variable is 1,743 and Journal of Economic Empowerment Strategy (JEES) Vol.
Number 02.
August 2024 product innovation is 1,734, where the value is <10 so that there is no multicollinearity in the regression model.
Heteroscedasticity Test The heteroscedasticity test is a test that assesses whether there is unequal variance in the residuals for all observations in the linear regression model.
The requirements that must be met in the regression model are the absence of symptoms of heteroscedasticity.
If the significant value is > 05 then there are no symptoms of heteroscedasticity.
Table VII The result of Heteroscedasticity Test Coefficientsa Unstandardized Coefficients Model (Constan.
Standardized Coefficients Std.
Error Beta Collinearity Statistics Sig.
Tolerance VIF Dependent Variable: Y Based on the table above, entrepreneurial orientation (X.
and product innovation (X.
show no symptoms of heteroscedasticity.
This can be seen from the two variables X1 and X2 having significant values above 0.
05, namely 0.
106 for variable X1 and 0.
135 for variable X2.
Multiple Linear Regression Multiple linear regression analysis is used to determine the influence of two or more variables, consisting of one dependent variable and two independent variables.
In this research, there is one dependent variable, namely Competitive Advantage and two independent variables, namely entrepreneurial orientation and product innovation.
Table Vi The result of Multiple Linear Regression analyze Unstandardized Coefficients Model Standardized Coefficients Std.
Error Beta (Constan.
Based on the analysis table above, the regression equation model is:
Y = 7.
344 X1 0.
647 X2
Information :
Y = Competitive Advantage X1 = Entrepreneurial Orientation Journal of Economic Empowerment Strategy (JEES) Vol.
Number 02.
August 2024 X2 = Product Innovation Constant .
= 7.
796, which means it shows a unidirectional influence between the entrepreneurial orientation and product innovation variables and the competitive advantage variable.
In which competitive advantage will growth if entrepreneurial orientation and product innovation do not change or are worth zero in order that, competitive advantage will turns into 7,796 The Entrepreneurial Orientation variable (X.
344 shows that this variable has a effective impact on competitive advantage (Y), in other phrases, if the entrepreneurial orientation variable is multiplied by one unit, competitive advantage will growth by 0.
The product innovation variable (X.
647, indicating that this variable has a advantageous effect on competitive advantage (Y).
In different words, if the product innovation variable is improved by one unit, competitive advantage will increase by 0.
Coefficient of Determination The Coefficient of Determination (R.
is a measure that shows the extent to which variations in the dependent variable can be explained by the independent variable.
Ghazali .
, states that the coefficient of determination aims to measure how far the ability of the independent variable is to implement variations in the dependent variable.
This coefficient of determination is used to measure the extent to which the independent variables can explain the dependent variable.
The coefficient of determination value is calculated using the R2 value, as seen in the following table.
Table IX The result of Coefficient of Determination Model Summaryb Model R Square Adjusted R Square Std.
Error of the Estimate Durbin-Watson Predictors: (Constan.
X2.
X1 Dependent Variable: Y The results of the regression calculation show that the coefficient of determination (R squar.
obtained is 0.
These results explain that the entrepreneurial orientation and product innovation variables only influence competitive advantage by 42.
Meanwhile, the remaining 57.
4% is influenced by other variables which are not the focus of this research, such as market orientation, product quality and technology.
Hypothesis test The t statistical test basically has the goal of displaying how plenty impact an independent variable personally has in explaining the dependent variable.
With the assist of the SPSS 26 computer software, checking out was performed using a significance level of 0.
Journal of Economic Empowerment Strategy (JEES) Vol.
Number 02.
August 2024 Table X The result of T test Coefficientsa Unstandardized Coefficients Standardized Coefficients Model Std.
Error Beta (Constan.
Sig.
Dependent Variable: Y T table: 1.
Ha is rejected when t table > t count, sig > 0.
05 there is no influence of variable x on variable y Ha is accepted when t table < t count, sig < 0.
05 there is an influence of variable x on variable y The Influence of Entrepreneurial Orientation (X.
on Competitive Advantage (Y).
From the analysis in the T Test table above, it can be concluded that the influence of entrepreneurial orientation (X.
on competitive advantage (Y) has a T value of 2.
232, greater than the T table value The significant value of 0.
028 is smaller than 0.
05 which is the commonly used significant level.
Thus, based on the decision making criteria, it can be concluded that Ha is accepted, which means there is a significant influence of the entrepreneurial orientation variable on competitive advantage.
The Influence of Product Innovation (X.
on Competitive Advantage (Y).
From the analysis in the T Test table above, it can be concluded that the influence of product innovation (X.
on competitive advantage (Y) has a T value of 4,740, greater than the T table value of 1.
The significant value of 0.
000 is smaller than 0.
05 which is the commonly used significant level.
Thus, based on the decision making criteria, it can be concluded that Ha is accepted, which means there is a significant influence of the product innovation variable on competitive advantage.
Joint F statistical testing is carried out to evaluate whether the independent variables as a whole have a significant impact on the dependent variable, as well as to test the second hypothesis.
This test was carried out using a significance level of 0.
= 5%) as a standard to determine whether the results have statistical significance or not.
Table XI The result of F test ANOVAa Model Sum of Squares Mean Square Regression Residual Total Sig.
Dependent Variable: Y Journal of Economic Empowerment Strategy (JEES) Vol.
Number 02.
August 2024 Predictors: (Constan.
X2.
X1 F table: 3.
Sig < 0.
05 or F count > F table, then there is a simultaneous influence of variable x on variable y.
Ha is accepted Sig > 0.
05 or F count < F table then there is no influence of variable x simultaneously on variable y.
Ha is rejected.
Based on the table data in the F test above, it was found that the Fcount value was 35.
Ftable 3.
09 with a significant probability of 0.
000 < 0.
05, so it can be concluded that entrepreneurial orientation and product innovation have a significant effect on the competitive advantage of Culinary MSMEs in Bandung City.
Discussion Based on research that has been conducted and described by researchers, there is a significant influence of entrepreneurial orientation and product innovation on competitive The findings from this research are that entrepreneurial orientation has an important role in being able to survive and compete in the intense competition for MSMEs in the city of Bandung.
From the t-test conducted by the researcher, it is known that the significant value of the entrepreneurial orientation variable in the t-test result table is 2.
While the t table in this study The significant value of 0.
028 is smaller than the 0.
05 significant value that is generally Thus, the conclusion is obtained that t count 2.
232> t table 1.
Based on the decisionmaking criteria, it can be concluded that Ha is accepted, which means that there is a significant influence of the entrepreneurial orientation variable on competitive advantage in Culinary MSMEs in Bandung City.
The results of this study are in line with research conducted by Sulistyo & Ayuni, .
Yaseen Zeebaree & Siron, .
Jayaningrum, .
stating that there is a positive and significant influence between entrepreneurial orientation and competitive advantage.
These results indicate that as business actors we must not forget the basics of doing business, namely the attitude of business actors which is stated in entrepreneurial orientation.
Entrepreneurial orientation is an important thing for business actors to have because it can be one of the strategies to develop their business to become bigger and more successful.
Business actors must dare to move and think far ahead to be able to compete in the tight competition of the culinary MSME world.
From the T test conducted by the researcher, it is known that the significant value of the product innovation variable in the t-test table is 4.
While the t table in this study is 1.
The significant value of 0.
000 is smaller than 0.
05 which is the general level of significance used.
Thus, the conclusion is obtained that t count 4.
740> t table 1.
Based on the decision-making criteria, it can be concluded that Ha is accepted, which means that there is a significant influence of the product innovation variable on competitive advantage in Culinary MSMEs in Bandung City.
The results of this study are in line with research conducted by Distanont & Khongmalai, .
Udriyah et al.
, .
Kuncoro & Suriani, .
Verbyani & Handoyo, .
stating that there is a positive and significant influence of product innovation on competitive advantage.
This shows that the uniqueness of the product or the characteristics of a product that we sell are important values or points to be able to survive in the competition in the market.
Unique products, have characteristics and also delicious tastes can be an attraction and advantage of a business.
From the research I conducted, not many business actors implement product innovation properly and correctly.
They tend to be monotonous and maintain the characteristics of their business by not frequently releasing new products.
Even though in fact customers like different products, they still have distinctive characteristics and follow customer wishes.
Especially in a fast-moving world Journal of Economic Empowerment Strategy (JEES) Vol.
Number 02.
August 2024 where trends change quickly, of course business actors must be able to move quickly and take advantage of this momentum to release special products that can attract customers.
Conclusion Based on the results of research and discussion regarding entrepreneurial orientation and product innovation on the competitive advantage of Culinary MSMEs in the city of Bandung, the following conclusions can be drawn:
The results of this research conclude that the entrepreneurial orientation variable has a significant influence on the competitive advantage of Culinary MSMEs in the city of Bandung.
This means that to be able to survive in competition and achieve competitive advantage, it is necessary to implement an entrepreneurial orientation attitude.
Thus, the first hypothesis, namely that there is a partial influence of entrepreneurial orientation on competitive advantage, can be accepted as true.
H1 is accepted.
The results of this research conclude that the product innovation variable has a significant influence on the competitive advantage of Culinary MSMEs in the city of Bandung.
This means that product innovation is needed to survive competition and gain an advantage.
Thus, the second hypothesis, namely that there is a partial influence of product innovation on competitive advantage, can be accepted as true.
H2 is accepted.
Based on the research results, there is a significant simultaneous influence of entrepreneurial orientation and product innovation on the competitive advantage of Culinary MSMEs in the city of Bandung.
This means that in order to gain a competitive advantage, business actors must be able to apply entrepreneurial orientation and product innovation well and simultaneously.
The third hypothesis, namely that there is a significant influence of entrepreneurial orientation and product innovation on competitive advantage, can be accepted as true.
H3 is accepted References