PRODUCT INNOVATION STRATEGIES IN INCREASING COMPETITIVENESS MSMES IN INDONESIAN

Abstract

This study aims to examine innovation strategies that can be applied by Micro, Small, and Medium Enterprises (MSMEs) in Indonesia in order to increase their competitiveness in the global and domestic markets, in this context, innovation is not only limited to product development, but also includes innovation in processes, marketing, and business models. Innovation is considered the key to facing increasingly fierce competition challenges, especially in the midst of market dynamics that can be applied by MSMEs in Indonesia, such as the use of digital technology, collaboration with other parties, and the development of creative culture in the organization. In addition, adaptation to market changes and increasingly intelligent consumers are also important factors in creating added value for products and services offered by MSMEs. Thus, the right innovation strategy can provide a sustainable competitive advantage for MSMEs in Indonesia, while encouraging national economic growth. This study uses a qualitative approach method with case studies on several MSMEs in Indonesia that have implemented product innovation strategies to increase their competitiveness. The findings of his research show that there is an increase in sales ups and downs experienced, orders from abroad, and a decline in sales since the Covid era hit, this can be a reference for the effectiveness of marketing strategies in competition between business actors. Implementing these strategies can help MSMEs differentiate themselves from the market, increase customer value, and capture new growth opportunities. Although MSMEs have great potential, there are still many difficulties to innovate in terms of products, therefore, this research focuses on the development and implementation of product innovation strategies as an effort to increase the competitiveness of MSMEs in Indonesia.