Innovation Strategy of Small Industry Batik in Competitive Advantage

Abstract

This study analyzing the effect of competence in marketing to competitive advantage, especially seen from a comparison of relative market share and growth in market share. By using Structural Equation Modelling (SEM) this study tested independent variable (Variable Marketing Strategy and Innovation Strategy) as exogenous variables and the dependent variable (Competitive Advantage) as endogenous. Based on data processing by Standardized Coefficient of Software LISREL on 108 respondent, the study found (a) Marketing strategy has a coefficient value of 0.36 and T -count is >t-probability or 3.07 sig >1.96 to competitive advantage. This means accepting H0 and reject H1. (b) An innovation strategy has a coefficient of 0.01 and T -count is <t-probability sig or 0.10 < 1.96 to competitive advantage and this means rejecting H0 and accept H1, innovation strategy does not affect the competitive advantage.