The Role of Business Innovation in Improving the Product Competitiveness of Food Micro Industry in Southeast Sulawesi, Indonesia

Abstract

This research was conducted to investigate and describe the role of business innovations implemented by food micro industry players to obtain better product competitiveness. This research was conducted using a quantitative research approach and was carried out in food micro industry in Southeast Sulawesi. There were 174 samples that were purposively selected including business owner and management team listed in the Department of Industry and Trade of the Southeast Sulawesi. Path analysis using SmartPLS was performed to analyze the research data. The results of this research showed that business innovation gave significant and positive contribution up to 60% to the enhancement of product competitiveness. The most appropriate business innovation to be applied in improving the food micro industry in Southeast Sulawesi was marketing innovation. Business innovation for marketing sector was necessary in improving and marketing unique products that could be done by adding more attractive product variants that to meet the market preference, demand, and necessities.