Abstract

Product innovation is the result of various processes that are combined and influence each other with the aim of improving consumer purchasing decisions. Through product innovation, it is hoped that consumers will continue to buy and be loyal, especially in the era of business competition. Therefore, research on product innovation becomes very important, especially for businesses that are currently booming throughout the country, namely the coffee shop business. This study aims to determine the variables that influence coffee shop product innovation in the city of Cirebon. The research was conducted in January-April 2022 and used a quantitative research design. The research method using survey techniques and the research population are coffee shop consumers in the city of Cirebon. The technique of determining the sample size is based on the loading factor number of 0.65 so that the number of samples is set at 70 respondents. The data analysis technique used the Structural Equation Model (SEM) instrument with the AMOS application. The results of the study conclude that the variable timing of innovation has a direct effect on coffee shop product innovation, while the variables of managerial competence, human resource competence, ownership of R & D facilities, and information system networks have no effect on coffee shop product innovation in the city of Cirebon. The results of this study are useful for coffee shop business actors in order to develop product innovations in order to win healthy business competition.

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