Peran Moderasi Inovasi Produk Pada Hubungan Strategi Biaya Rendah Terhadap Keunggulan Bersaing

Abstract

This study aims to examine the role of product innovation as a moderating factor in the relationship between low-cost strategy and competitive advantage in coffee SMEs in Tarakan City. A quantitative research approach was employed using the Partial Least Squares-Structural Equation Modeling (PLS-SEM) method. Data collection was conducted through questionnaires distributed to coffee MSME owners in Tarakan City. The sample was selected using purposive sampling, with criteria including SMEs that have been operating for at least one year and implement a low-cost strategy. The findings indicate that the low-cost strategy does not have a direct influence on competitive advantage (p-value = 0.873). However, it has a positive and significant effect on product innovation (p-value = 0.000). Moreover, product innovation significantly enhances competitive advantage (p-value = 0.000). The key insight from this study is that product innovation acts as a moderator between low-cost strategy and competitive advantage. This implies that coffee SMEs adopting a low-cost strategy can achieve a competitive edge only if they simultaneously innovate their products.