Abstract
One of the causes of the low competitiveness of palm sugar MSMEs to enter the modern and export market is the low quality of products. The product’s low quality is caused by the low technology which is used in the palm sugar’s production process. Therefore,a research is needed to analyze the influence of technical innovation on the marketing performance of palm sugar MSMEs. Respondents of this research were the owners of Palm Sugar MSMEs in Banyumas Regency. Data were collected using questionnaires, in-depth interviews, observation, and Focus Group Discussion (FGD). Based on the analysis using mediation regression analysis with causal step method, it is obtained that the results of technical innovation has a positive influence on competitive advantage and marketing performance. Furthermore, competitive advantage mediates the relationship between technical innovation and marketing performance. Based on the results of the research,some recommendations are formulated; the palm sugar MSMEs need to make technical innovations at the stages of penderesan or collecting, processing and packaging technology in palm sugar production.
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