The Effect of Strategy Innovation, and Market Orientation toward Competitive Advantage in Home industry of Madurese Traditional Weapon (Keris), Sumenep, Indonesia

Abstract

A part of Indonesian Micro, Small and Medium Enterprises (MSMEs) encounter in decreasing of listening consumer needs, departmental collaboration and technology utilization. On the other side,   the consumer orientation, competitor’s orientation, and departmental coordination have decreased very dramatically. Finally, the gap fluctuation  of product price, certain product focus and variation of the product is widely. The aim of this research is to analysis the effect of strategy innovation, and market orientation toward competitive advantage in home industry of Madurese traditional weapon (Keris),  Sumenep, Indonesia. The number of respondence is thirty five people. The research variables are the strategy innovation, the market orientation (as independent variables) and the competitive advantage (as dependent variable). The research method using  the quantitative approach – Multiple regression.  The data collection using questionnaire and interview. The research results reveal of the strategy innovation towards the competitive advantage  is positive significantly, and the market orientation towards the competitive advantage is positive significantly. The biggest contribution of the strategy innovation related to the competitive advantage is 0.305 or 30.5 percent and the lowest contribution of  the market orientation related to the competitive advantage is 0.159 or 15.9 percent