The Influence of Price, Product Innovation, and Service Quality on Competitive Advantage (Study on Hartini MSME Customers in Ponorogo)

  • Melinda Wahyuning Putri Universitas Pembangunan Nasional "Veteran" Jawa Timur, Surabaya
  • Budi Prabowo Universitas Pembangunan Nasional "Veteran" Jawa Timur, Surabaya
Keywords: Price, Product Innovation, Service Quality, Competitive Advantage, MSME.

Abstract

This research seeks to examine how price, product innovation, and service quality affect the competitive advantage of Hartini MSMEs in PonorogoUtilizing a quantitative method with an associative approach, this study gathers data by administering surveys to 100 respondents who are Hartini MSME consumers, using intentional sampling procedures. Data analysis was carried out by multiple linear regression using SPSS assistance, accompanied by classical assumption testing to ensure model feasibility. It was found through the analysis that all three independent variables together have a significant and positive impact on competitive advantage. Partially, each variable also showed a significant effect, with product innovation being the most dominant factor in driving competitiveness. These findings provide strategic insights for MSMEs to continue to innovate and improve product and service quality in the face of increasing competition.

Downloads

Download data is not yet available.

References

Aini, R., & Wati, F. (2023). The Role of Digitalization in the Development of MSMEs in Indonesia. Internet, 01(02), 25-32. https://www.sbm.itb.ac.id/peran-digitalisasi-dalam-pengembangan-umkm-di-indonesia/

Akbar, T. S., Fitrah, Y., & Rafli, M. (2023). Influence, Price Perception, Quality Perception, and Brand Loyalty on Buying Interest in Shopee Online Stores. Journal of Neraaca Management, Ecobnomi, 3 (1), 1-14. https://ejournal.warunayama.org/index.php/musytarineraca/article/view/1655

Anggara, F. (2022). The Effect of Service Quality on Company Performance with Competitive Advantage as a Mediating Variable for Leather Bag MSMEs in Yogyakarta. 9, 356-363.

Anggraini, D., Muchtolifah, & Sishadiyati. (2022). The Effect of Population, Unemployment and Government Expenditure on Poverty in South Central Timor Debi District. JAMBURA ECONOMIC EDUCATION JOURNAL, 4(1), 87-96.

Anugrah, R., Danial, R. D. M., & Mulia, F. (2020). The Effect of Service Quality on Competitive Advantage (Study on: Starred Hotel Customers in Sukabumi City). JIMEK: Scientific Journal of Economics Students, 3(1), 67. https://doi.org/10.30737/jimek.v3i1.711

BPS.Ponorogokab. (2023). Total Population by Age Group and Sex in Ponorogo Regency 2023. ponorogo.bps.go.id

Cahyani, U. E. (2020). Competitive Strategy in Islamic Business. At-Tijaroh, 2(1), 56-70.

Dahana, R. N., Indrawati, N. K., & Mugiono, M. (2021). Competitive advantage to Mediate the Influence of Product Innovation and Entrepreneurial Orientation on Marketing Performance in Small and Medium Industry. Journal of Management Applications, 19(2), 413-423. https://doi.org/10.21776/ub.jam.2021.019.02.17

Dean Mavilinda, E. S., & Susanti, A. (2022). The Effect of Product Quality, Product Innovation and Brand Image on Purchasing Decisions for Tolak Angin during the Pandemic in Surakarta. Journal of Economic Appreciation, 10(2), 213-221. https://doi.org/10.31846/jae.v10i2.460

Dewi, L. S., & Falah, A. S. (2022). The Effect of Pricing Strategy on Competitive Advantage in the Midst of the Covid-19 Pandemic (Case Study at Bardesi Baja Tasikmalaya Iron Shop). Ecodemica Journal: Journal of Management Economics and Business, 6 (2), 141-149. https://doi.org/10.31294/eco.v6i2.12285

Estamarinda, E., Akila, A., & Sinarti, T. (2021). The Effect of Service Quality and Price on Customer Satisfaction at Hompizz Pizza Palembang. Journal of Management and Investment (MANIVESTASI), 3(1), 69-82. https://doi.org/10.31851/jmanivestasi.v3i1.6407

Ghozali, I. (2021). Application of Multivariate Analysis (10th edition). Diponegoro University Publishing Agency.

Gunarsih, C. M., Kalangi, J. A. F., & Tamengkel, L. F. (2021). The Effect of Price on Consumer Purchasing Decisions at Pelita Jaya Buyungon Amurang Store. Productivity, 2(1), 69-72. https://ejournal.unsrat.ac.id/index.php/productivity/article/view/32911

Hariyanti, N. T., & Wirapraja, A. (2020). The Influence of Influencer Marketing as a Modern Era Digital Marketing Strategy (A Literature Study) Modern Era Digital Marketing Strategy. March.

Indrasari, M. (2019). Marketing & Customer Decisions.

Julyanthry, Putri, D. E., Nainggolan, N. T., Butarbutar, N., & Sudirman, A. (2023). Analysis of the competitive advantage of MSMEs in terms of the modern marketing mix 4PS in MSMEs in Pematangsiantar city. LIlmu Manajemen, 11(1), 15-30. https://journal.unesa.ac.id/index.php/jim/article/view/22652/9466

Case, S., Pringsewu, K., & Pagelaran, K. (2020). E-Marketplace Application of Catfish Harvest Sales. 1(1), 111-117.

Ministry of Cooperatives. (2020). MSME Data. https://kemenkopukm.go.id/data-umkm

Kotler, P., & Keller, K. L. (2016). Marketing Management (Vol. 9, Issue 2).

Latief, F., & Asniwati. (2023). Marketing Management (Through Strategy and Implementation Approach).

Lestari, E. R. (2019). Innovation management: Efforts to achieve competitive advantage. Brawijaya University Press.

Lestari, I., Astuti, M., Ridwan, H., Economy, F., Development, U., & Veteran, N. (2019). On the competitive advantage of culinary Umkm. 4(1), 111-118.

Martoyo, A., Hendrawan, S. A., & Hesananda, R. (2022). Marketing Strategy Planning for Ornamental Plants at Taman Anggrek Ragunan during the Covid-19 Pandemic. Widya Cipta: Journal of Secretarial and Management, 6(2), 114-122. https://doi.org/10.31294/widyacipta.v6i2.12379

Maryani, L. (2019). The Role of Business Strategy in Increasing Competitive Advantage in the Fashion Industry. 5(1), 48-60.

Maulana, Y. S. and A. (2020). Product Innovation and its Effect on Consumer Purchase Interest. Journal of Business Innovation, 8, 86-91. http://ejournal.polbeng.ac.id/index.php/IBP/article/view/1313

Miradji, M. A., Vercelly, W. A. S., Faiz, R. M., & ... (2024). Innovation in Strategy Management:” Building Competitive Advantage in the Digital Era”. Journal of Management ..., 28-38. https://jurnal.unipasby.ac.id/index.php/jamanis/article/view/8913%0Ahttps://jurnal.unipasby.ac.id/index.php/jamanis/article/download/8913/5444

Muhammad Akbar, Marwan Effendi, Winanto Nawarcono, Aji Priambodo, & Sufyati H.S. (2023). The Sustainability of MSME Business Competitiveness in Bogor City in Review from Entrepreneurial Orientation, Financial Capital and Innovation. Journal of Businessman: Business and Management Research, 5(1), 80-93. https://doi.org/10.52005/bisnisman.v5i1.136

Ningrum, N. (2022). Competitive Advantage Strategy at Magistra Utama Jember Education and Training Institute. LAN TABUR: Journal of Sharia Economics, 3(2), 180-191. https://doi.org/10.53515/lantabur.2022.3.2.180-191

Oscar, B., Hilman, M. M., & Megantara, C. (2020). The Influence of Product Attributes on Purchasing Decisions for Muslim Products Army D3 Marketing Management Study Program Polytechnic Post Indonesia. Journal of Business and Marketing, 10 (1), 1-12. www.kompas.com

Padilah, T.N. and Adam, R.I., 2019. Multiple Linear Regression Analysis in Estimating Rice Crop Productivity in Karawang Regency. FIBONACCI: Journal of Mathematics and Mathematics Education, 5(2),117- 128

Pertiwi, A. B., Ali, H., & Sumantyo, F. D. S. (2022). Factors Affecting Customer Loyalty; Analysis of Price Perception, Service Quality and Customer Satisfaction (Literature Revie Marketing Management). Journal of Applied Management Science, 3(6), 582-591.

Salsabila, T. P., Nursyamsi, J., & Utomo, J. (2023). The Effect of Product Innovation, Service Quality, Social Media and Price on Competitive Advantage. Multidisciplinary Scientific Journal, 2(6), 192-200. https://doi.org/10.56127/jukim.v2i6.1183

Sari, Y., & Gultom, A. W. (2019). The effect of marketing mix and market orientation on competitive advantage in franchise businesses in Oku Regency. Journal of Accounting, Finance, and Management, 1(1), 9-16. https://doi.org/10.35912/jakman.v1i1.2

Setyowati, E., Mustofa, A. H., Yuliawan, D., Astuti, E. N., & Mahasti, H. S. G. D. (2023). Optimization of Micro, Small and Medium Enterprises (MSMEs) through Basic Management Training in Duri Village, Slahung District, Ponorogo Regency. Sewagati, 8(1), 1173-1181. https://doi.org/10.12962/j26139960.v8i1.806

Shabrina, V. G. (2019). The Influence of the Digital Revolution on Marketing and Consumer Behavior. Journal of Pewarta Indonesia, 1(2), 131-141. https://doi.org/10.25008/jpi.v1i2.16

Shafanada, C. A., & Andarini, S. (2024). Product Innovation, product quality. COSTING: Journal of Economic, Business and Accounting, 7.

Sugiyono. (2020). Quantitative, Qualitative, and R&D Research Methods. In 2 (pp. III-434).

Sugiyono. (2019). Quantitative, Qualitative, and R&D Research Methods. Bandung: Alphabet.

Suryanti, A., Murwaningsih, E., & Mayangsari, S. (2022). Competitive Advantage concepts and case studies. In Journal GEEJ (Vol. 7, Issue 2).

Susilowati, I. H., & Utari, S. C. (2022). The Effect of Price on Purchasing Decisions at Mama Pharmacy in Depok City. Ecodemica Journal of Management Economics and Business, 6(1), 134-140. https://doi.org/10.31294/eco.v6i1.12806

Syairi, A. (2023). The Effect of Product Innovation, Price and Product Quality on Competitive Advantage at Coffee Shops in Banjarmasin. 7(2).

Tjiptono, F., & Chandra, G. (2020). Service, quality and satisfaction. In CV Andi Offset (Vol. 1, Issue 1).

Wijaya, A. (2019). Procuratio: Scientific Journal of Management Lifestyle, Product Innovation, Price, And Brand Image: Impact On Purchase Decision On Samsung Smartphone. Scientific Journal of Management, 9(3), 244-252. http://www.ejournal.pelitaindonesia.ac.id/ojs32/index.php/PROCURATIO/index

Winata, A., & Prabowo, B. (2022). The Effect of Price, Facilities and Service Quality on Customer Loyalty with Customer Satisfaction as an Intervening Variable at London Beauty Center (LBC) Sidoarjo. El-Mal: Journal of Islamic Economics & Business Studies, 3(5), 810-822. https://doi.org/10.47467/elmal.v3i5.1106

Published
2025-10-13
How to Cite
Putri, M., & Prabowo, B. (2025). The Influence of Price, Product Innovation, and Service Quality on Competitive Advantage (Study on Hartini MSME Customers in Ponorogo). Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE), 8(3), 12270-12286. https://doi.org/10.31538/iijse.v8i3.7273