ABSTRACT
The purpose of this study is to analyze and provide empirical evidence on 1) How the product innovation influences sustainable competitive advantage, 2) how the product innovation influences the market driving, and 3) How the market driving influences the sustainable competitive advantage. This study is carried out through SEM (Structural Equation Modeling) test with Smart PLS Program. The data obtained is primary and secondary data. The data collection technique is done by distributing a questionnaire to the respondent and documentation or records of the sources of the required data. Questionnaires are distributed to the respondents. Answers to the questionnaires are included in the list of questions by using a scale interval of 1-5 to obtain respondents opinions regarding the questionnaire. Furthermore, respondents are also given the opportunity to provide feedback or comments. The analysis technique used in this study is by using the concept of Structural Equation Model (SEM) with Partial Least Square (PLS)program. The findings assert that
Product innovation (PI) positively influences sustainable competitive advantage (SCA). It means that the better the PI is the better the sustainable competitive advantage will be.
Product innovation (PI) positively influences Market Driving (MD). It means that the better the PI is, the better the MD will be.
Market Driving (MD) positively influences sustainable competitive advantage (SCA). It means that the better the MD is, the better the sustainable competitive advantage will be.
Keywords : product innovation, market driving, sustainable competitive advantage