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Original Research

BUILDING THE COMPETITIVE ADVANTAGE OF SMES IN THE FASHION SECTOR IN MEDAN CITY WITH A MEDIATION AND MEDIATION APPROACH

ROMINDO M. PASARIBU 1, AUDREY M. SIAHAAN 2, JUARA SIMANJUTAK 3, AGUS N SIMANJUTAK 4, and DAME RIA RANANTA SARAGI 5.

Vol 18, No 01 ( 2023 )   |  DOI: 10.17605/OSF.IO/SW5KZ   |   Author Affiliation: Fakultas Ekonomi dan Bisnis, Universitas HKBP Nommensen, Medan 1,2,3,4,5.   |   Licensing: CC 4.0   |   Pg no: 23-40   |   Published on: 09-01-2023

Abstract

Introduction: The fashion sector is a factor that has the potential to support economic recovery. The Ministry of Industry (Kemenperin) encourages the fashion industry (textiles and apparel) to increase its role in national economic recovery. Research Objectives: Identify and analyze the influence of marketing and innovation capabilities on direct market orientation and market orientation as mediation for competitive advantage. (2) To determine and analyze the effect of marketing ability and innovation ability on competitive advantage directly and using the internet as a mediator variable? Methods: The sampling technique in this study used a non-probability sampling technique. What used a single-stage cluster for sampling? The number of samples or respondents in this study was 150 respondents. What used the Partial Least Square (PLS) approach to analyze the data using the SmartPLS version 3 program? Results: Research results H1a is supported or accepted, H1b is rejected or not received, H2a is accepted or funded, H2b is born or supported, whereas H3a is rejected, H3b and H3c are accepted but not supported. And H4a is accepted or supported. H4b, where the use of the internet as a mediator variable does not strengthen the effect of innovation ability on market orientation for SMEs in the Fashion sector in Medan City. So that H4b in this study was rejected or not supported. Originality: This study uses the use of the internet as a mediator variable to strengthen marketing capabilities and innovation capabilities towards market orientation for MSME actors in the Fashion Sector in Medan City


Keywords

Capability, Marketing, Innovation, Market Orientation, Internet, MSMEs, Medan