Strategic Orientation, Innovation and Competitive Advantage of SMEs: A Case Study of Creative Industry in Central Java

Abstract

This study aims to examine the relationship between strategic orientation, innovation, and competitive advantage in SMEs in Central Java. During the pandemic, market conditions were not stable enough but still urged SMEs to grow and develop through competitive advantage. This study wants to see how strategic orientation affects the innovation process of SMEs to create a competitive advantage. Respondents were 78 SMEs spread across Central Java. Data analysis used validity test, reliability test, correlation, multiple regression, T-test, F test, and coefficient of determination test. Tests were conducted between strategic orientation towards innovation and strategic orientation to competitive advantage. The strategic orientation carried out during the pandemic is quite difficult to increase innovation and competitive advantage.