The Influence of Innovation Factors and Capability Factors on Baby Squid Marketing Performance
(A Study of MSMEs in Banjarmasin)
Abstract
The growth of Micro, Small, and Medium Enterprises (MSMEs) in Banjarmasin City has increased significantly from year to year, dominated by the food and beverage sector such as Baby Cumi products. Despite contributing positively to the economy and reducing unemployment, MSMEs are still faced with classic challenges such as simple management, the absence of a legal entity, and limited human resource skills. This study aims to analyze the influence of Innovation Factors ($X_1$) and Capability Factors ($X_2$) on Marketing Performance ($Y$) in Baby Cumi MSMEs in Banjarmasin City. The research method used is an explanatory quantitative approach. The population in this study includes all Baby Cumi MSMEs in Banjarmasin, with a sampling technique using a saturated sampling method (census) of 48 respondents. Data collection was carried out through interviews, questionnaires, documentation, and observation. The data analysis technique used Partial Least Square-Structural Equation Modeling (PLS-SEM) with the help of SmartPLS 3.29 software. The results of the structural model test (inner model) show that the Innovation variable has a positive and significant influence on Marketing Performance with a t-value of 10.666 ($> 1.96$) and a P-value of 0.000. However, the strength of its influence is in the very weak category with a path coefficient value of 0.102. On the other hand, the Ability variable is proven to have a positive and very significant influence on Marketing Performance with a t-value of 6.833 ($> 1.96$), a P-value of 0.000, and a strong path coefficient of 0.783. Simultaneously, the integration of the determination value ($R\text{-Square}$) contributes 77.7% to Marketing Performance. The conclusion of this study emphasizes that mastery of solid management skills (Ability Factor) is the most instant and crucial main driver for Baby Cumi MSMEs compared to product innovation actions to optimize sales turnover, production volume, and business profits.References
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