The Influence of Innovation Capability and Information Technology on Business Performance through Competitive Advantage as an Intervening Variable in Culinary MSMEs in Cianjur Regency

Abstract

Background: The increasingly competitive business environment requires Micro, Small, and Medium
Enterprises (MSMEs) to continuously innovate and utilize information technology to maintain business
performance amid dynamic market changes. Cianjur Regency has the largest number of culinary MSMEs
among other sectors, making competitive advantage a crucial factor for achieving sustainable business
growth. In this context, competitive advantage acts as an intervening factor that links innovation capability
and the use of information technology to improved business performance.
Purpose: This study aims to analyze the influence of innovation capability and information
technology on business performance through competitive advantage as an intervening variable in
culinary MSMEs in Cianjur Regency.
Methodology: The research employs a quantitative approach using a survey method. The population
consists of culinary MSME owners in Cianjur Regency, with a total of 100 respondents selected through
purposive sampling. Data are collected using questionnaires measured on a Likert scale and analyzed
using path analysis, preceded by validity, reliability, and classical assumption tests.
Finding: Although this research is still at the proposal stage, it is theoretically expected that innovation
capability and information technology have both direct and indirect significant effects on business
performance through competitive advantage. This implies that MSMEs capable of developing innovations
and integrating digital technologies tend to strengthen their competitiveness and enhance overall
performance.
Limitation: This study focuses only on culinary MSMEs in Cianjur Regency; therefore, the results may
not be generalized to other sectors or regions. Future research is suggested to include a larger sample
size and additional variables such as entrepreneurial orientation or market dynamics.
Originality: This research provides a theoretical contribution to understanding how innovation capability
and information technology synergistically influence business performance through competitive
advantage, particularly within the context of local culinary MSMEs in Indonesia.
Keywords: Innovation Capability, Information Technology, Competitive Advantage, Business
Performance, Culinary MSMEs.