The Dominant Factor of Strategy Innovation, and Market Orientation toward Competitive Advantage in Home industry of Madurese Traditional Clothes (Batik), Sumenep, Indonesia

Abstract

A portion of Indonesian Micro, Small, and Medium Enterprises (MSMEs) face significant challenges related to declining responsiveness to consumer needs, weak departmental collaboration, and limited technology utilization. Additionally, there has been a notable decrease in consumer orientation, competitor orientation, and interdepartmental coordination. These challenges have led to fluctuating product pricing, lack of product focus, and limited product variation. This research aims to analyze the influence of strategic innovation and market orientation on competitive advantage within the home industry of Madurese traditional clothes (Batik) in Sumenep, Indonesia. The study involved 40 respondents. The independent variables include perception of consumer needs, departmental collaboration, technology utilization, consumer orientation, competitor orientation, and departmental coordination, while the dependent variable is competitive advantage. A quantitative method with factor analysis was employed, and data were gathered through observation, interviews, and simulated data. The results reveal three key factors: all six variables were identified and reduce to three factors. There are External Orientation, supported by competitor orientation, departmental collaboration, consumer needs responsiveness, and technology utilization, ConsumerExternal Orientation; and Departmental Coordination.