The Dark Side of the Broom Craft SMEs in Purbalingga: A Strategy for Leveraging Innovation Capability to Achieve Competitive Advantage

Abstract

This research investigates strategies to enhance the deployment of innovative capabilities through the dimensions of product innovation, process innovation, and service innovation in achieving competitive advantage among Small and Medium Industries (SMIs) of Glagah Brooms in Purbalingga Regency. This study employs a quantitative descriptive approach involving 106 respondents, all of whom are owners of Glagah Broom SMIs in Purbalingga Regency. The collected data were analyzed using multiple linear regression techniques with the assistance of IBM SPSS version 25.0. The results indicate that product innovation does not have a significant effect on competitive advantage, whereas process innovation and service innovation have positive and significant effects on competitive advantage. These findings suggest that improving production processes and service quality plays a more crucial role in strengthening the competitive advantage of Glagah Broom SMIs compared to product innovation.