The Influence of Innovation and Entrepreneurial Orientation on Competitive Advantage Through Culinary Business Motivation in Jambi City

Defryanto; Ade Octavia; Idham Khalik

doi:10.63922/ijebir.v4i04.1857

Defryanto Master of Management Study Program, Faculty of Economics and Business, Jambi University, Indonesia
Ade Octavia Master of Management Study Program, Faculty of Economics and Business, Jambi University, Indonesia
Idham Khalik Master of Management Study Program, Faculty of Economics and Business, Jambi University, Indonesia

DOI: https://doi.org/10.63922/ijebir.v4i04.1857

Keywords: : UMKM, Innovation, Orientation, Motivation, Competitive Advantage

Abstract

UMKM are a field related to the draft of entrepreneurship. which is often associated with the concept of entrepreneurship. UMKM act as engines of economic development. UMKM create new job opportunities, reduce income inequality and eradicate poverty. The problem that is often encountered in UMKM in the food sector is generally the lack of innovation carried out by UMKM actors thems elves, such as the absence of additional variants of food served, the menu served is mostly still local, the interest is only based on the proximity of the residence to the consumer. Likewise with the orientation of UMKM actors who still think about just meeting daily needs at home, not thinking about how to develop the business so that it is better known not only near their residence, but also outside the city. This reduces the competitive advantage of UMKM themselves, such as the uniqueness of local food that is not necessarily found in other areas.

This study uses an associative quantitative research type that dominates the relationship between 2 or more variables, Sugiyono (2019). The location of the study is in Jambi City. The number of research samples obtained from a population of 178 young entrepreneurs. Primary data sources were obtained directly through direct observation of the research object by conducting interviews and distributing questionnaires to respondents of culinary business actors. Secondary data was obtained from existing data information such as journals, theses, theses and books, supporting information. The calculation of the analysis model uses the PDRB approach and the analysis model used for testing the hypothesis in this study is path analysis. Based on the results of the data analysis, it shows that entrepreneurial orientation has a positive and significant effect on the competitive advantage of culinary businesses in Jambi City, this is because the probability value of the influence of orientation on competitive advantage is 0.000 which is smaller than 0.005, product innovation has a positive and significant effect on the competitive advantage of culinary businesses in Jambi City. This is proven by the existence of innovations that have an impact on competitors in the same business, motivation has a positive and significant impact on the competitive advantage of culinary businesses in Jambi City and entrepreneurial orientation, product innovation, and motivation have a positive and significant impact together (simultaneously) on the competitive advantage of culinary businesses in Jambi City.

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