Abstract
The main aim of this research is to analyze the influence of innovation capability and customer relationship management on MSME competitiveness. This research uses a literature and field research design with a causal associative approach. This study uses a research instrument test consisting of validity and reliability tests. The quantitative analysis consists of a normality test, regression test, hypothesis test, correlation test, and coefficient of determination. The research results conclude that innovation capability and customer relationship management have a positive and significant effect on MSME competitiveness. The implications of this research state that the ability to create innovative products or services can differentiate a company from its competitors in the market. Innovation allows companies to offer something unique and added value to customers. With a deeper understanding of CRM, MSMEs can identify new opportunities, optimize marketing strategies, and increase customer retention to improve MSME performance, growth and sustainability in an increasingly competitive business environment.
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