The Role of Product Innovation Capability in Increasing Competitive Advantage

Abstract

The aim of this research is to analyze the role of product innovation capabilities on competitive advantage. The population of this research is consumers who shop at the Ada supermarket in the city of Semarang, Indonesia. Samples were taken from 125 respondents who were randomly selected. Data collection by distributing questionnaires to Ada Supermarket customers. The questionnaires were distributed using closed statements with alternative answers according to a Likert scale. 5 alternative answers, 1 (strongly disagree), 2 (disagree), 3 (disagree), 4 (agree) and 5 (strongly agree). The analysis tool uses SEM AMOS version 22. The findings of this research are that there is a positive and significant influence between proactive power, competitor orientation, flexibility of customer tastes on product innovation capabilities. There is a positive and significant influence between proactive power, flexibility of customer tastes and product innovation ability on competitive advantage.