The Effect of Product Innovation on the Performance of Culinary MSMEs in Tenggarong
DOI:
https://doi.org/10.47747/icbem.v3i1.3306Keywords:
Innovation, Product Development, MSME Performance, Culinary Business, TenggarongAbstract
Product innovation is a crucial factor in determining the competitiveness of culinary micro, small, and medium enterprises (MSMEs) in Tenggarong, particularly amid increasing market dynamics and intense business competition. This article aims to analyze how product innovation—encompassing menu variation development, improvements in packaging quality, utilization of digital technology, and responsiveness to market trends—affects the performance of culinary MSMEs. Based on a simplified conceptual synthesis of findings from previous studies, innovation is shown to make a direct contribution to increased sales, customer growth, operational efficiency, and business reputation. Culinary MSMEs that consistently implement innovation tend to demonstrate superior business performance compared to those that do not engage in innovation practices. This article emphasizes that innovation is no longer an optional activity but a strategic necessity for culinary MSMEs in Tenggarong to survive and grow within an increasingly competitive business environment.
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