Innovation model for MSMEs recovery business strategy: Lessons from tourism area during the COVID-19 pandemic

Abstract

This study aims to analyze the performance of MSMEs in tourist areas in Jambi Province by integrating innovation models and recovery strategies during the COVID-19 pandemic. The research was conducted in several main tourist areas in Jambi Province. The population in this study were all MSME entrepreneurs in the selected tourist area, with a sample of 151 entrepreneurs. The data is sourced from interviews (questionnaire-based) with MSME entrepreneurs and in-depth interviews with MSME entrepreneurs, the Jambi Provincial Tourism Office, and the Jambi Province Industry and Trade Office. The data were analyzed with the SEM-PLS analysis tool. The analysis found that competitive strategy and innovation positively affected the productivity of MSMEs. Likewise, productivity has a positive effect on the performance of MSMEs. Furthermore, there are three main strategies to recover the MSME business: digitizing business, controlling and assessing supply chains, and utilizing business assistance from the government.