Marketing Performance Mediates Between Iconic Product Innovation and Sustainable Competitive Advantages

Abstract

Companies that carry out continuous innovation are seen as a source of competitive advantage. In achieving competitive advantage, there are several other things that can be a measure, namely resource excellence, position advantage, and value advantage for customers. The superiority of resources consists of superior expertise and excellence in raw materials as well as marketing and capital performance. The position superiority which consists of relatively low of cost advantages and value advantages for customers is a value that is different from the others and is not easily replaced. In accordance with Porter's opinion, competitive advantage can be obtained from resources and capital, namely the strengths and weaknesses of marketing performance, while capital is defined as the company's ability to manage its resources to work together as a work team in one department, or in other words the high or low performance of marketing will affect the high or low competitive advantage of the company. Position excellence consists of relatively low of cost advantages and value advantages for customers. In a rapidly changing environment, competitive advantage is determined by creativity and innovation that can satisfy customer desires better than competitors. Every company that competes in an industry has a competitive strategy, explicit or implicit. This strategy might be developed explicitly through the planning process or it might also have developed implicitly through the activities of various functional departments of the company.

The Model of Competitive Advantage for Increasing Business Performance in Small and Medium Industries of Woven Fabric (Endek) in Bali Province

“…Thus, the results of this study are not confirmed to the empirical findings ofPrajogo (2016),Aksoy (2017),Fatach & Nursyamsiah (2019),Zaefarian, Forkmann, &Mitrega (2017), andSharma, Davcik, &Pillai (2016) that innovation products made can improve business performance in SMEs.Further findings conveyed, that product innovation can determine business performance if it is mediated by competitive advantage. The results of this study are following the findings ofAstrid (2017) andMuh, Rahman, Syamsu, and Madris (2019), that product innovation as a source of competitive advantage can improve business performance.…”

“…The research results obtained are in line with the findings of Narida, Sastrya, & Achmadi (2021) that product innovation carried out by SME actors does not necessarily have a direct impact on business achievement. This makes it possible, the product innovation carried out is a process in business activities that aims to increase the added value and competitiveness of the products produced(Muh, Rahman, Syamsu, and Madris (2019). Thus, the results of this study are not confirmed to the empirical findings ofPrajogo (2016),Aksoy (2017),Fatach & Nursyamsiah (2019),Zaefarian, Forkmann, &Mitrega (2017), andSharma, Davcik, &Pillai (2016) that innovation products made can improve business performance in SMEs.Further findings conveyed, that product innovation can determine business performance if it is mediated by competitive advantage.…”

“…According to studies by Fatach & Nursyamsiah (2019), Sharma, Davcik, & Pillai (2016) and Zaefarian, Forkmann, & Mitrega (2017), product innovation can determine the increase in business achievements of the company. Another case with empirical findings from Muh, Rahman, Syamsu, and Madris (2019) and Narida, Sastrya, & Achmadi (2021) that product innovation cannot ensure the business achievement of the company.…”