CREATE A COMPETITIVE ADVANTAGE THROUGH PRODUCT INNOVATION, MARKET ORIENTATION, AND BUSINESS NETWORK

Silvia Hendrayanti, Fidyah Yuli Ernawati

Abstract


Tourism is an economic sector that can boost revenue in the regional business sector. Tourism activities involve many components that are interrelated with one another. The intense competition in the tourism business encourages business actors in the tourism sector to compete to attract tourists in various ways. The purpose of this study was to determine the effect of product innovation, market orientation, and business networks on competitive advantage in Umbul Tlatar tourism, Boyolali Regency. This research was conducted in Boyolali, the population of this study were all tourists of Umbul Tlatar Boyolali. The sampling technique used the Slovin formula with a ratio of 0.1 and it is known that the sample amounted to 100. The data collection technique used accidental sampling. The data analysis technique used the classical assumption test (normality, multicollinearity, heteroscedasticity) and multiple linear regression analysis with the SPSS 22 application. The results showed  t test for product innovation variable has a significant effect on competitive advantage with t count (2.257)> t table (1.985) and a significance of 0.001 <0.05. Market orientation has no effect on competitive advantage with t count (1.039) <t table (1.985) and a significance of 0.302> 0.05. Business network has no effect on competitive advantage with t count (1.771) <t table (1.985) and a significance of 0.080> 0.05.  Umbul Tlatar Tourism managers need to pay attention to market orientation, especially regarding customer orientation, market information, and competitors. This can increase the competitive advantage of tourism.

 

Keywords: Product Innovation, Market Orientation, Business Network, Competitive Advantage


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