Track: Knowledgebase Engineering

Abstract

The majority of MSMEs in Surabaya, in practice, lack product innovation and use social media ads features to expand their market share. Innovations carried out by MSMEs have an important role in their sustainability in facing difficult situations and positions, for this reason, this study aims to examine the effect of product innovation and social media on marketing performance mediated by competitive advantage. The population of this research is MSMEs in Surabaya with a sample of 117 MSMEs, the sampling technique is non-probability sampling with purposive sampling the criteria are MSMEs that use social media ads and have more than 3 product variants. The analytical technique used is partial least square (PLS). The test results show that the hypothesis that explains product innovation and social media has a direct effect on marketing performance is acceptable. The hypothesis that explains the product and social media innovation on marketing performance mediated by competitive advantage are acceptable. The hypothesis that explains the product and social media innovation on competitive advantage are acceptable. These results show the importance of research on product innovation and social media that can boost the competitive advantage to expand market share.