The Role of Product Innovation in Increasing Competitiveness UMKM in the Post-Pandemic Era

Abstract

The Covid-19 pandemic has significantly impacted the sustainability of Micro, Small, and Medium Enterprises (UMKM), particularly in terms of business competitiveness. In the post-pandemic era, product innovation has become a key strategy in maintaining and enhancing UMKM competitiveness. This study aims to analyze the role of product innovation in enhancing UMKM competitiveness in the post-pandemic era. The research method used is a quantitative approach with data collection techniques through questionnaires to UMKM actors. Data were analyzed using regression analysis to determine the effect of product innovation on competitiveness. The results show that product innovation has a positive and significant effect on UMKM competitiveness. Innovation in the form of improving product quality, design, packaging, and product variety has been proven to increase consumer purchasing interest and expand market share. Thus, product innovation is a crucial factor that UMKM actors must continue to develop to survive and compete sustainably in the post-pandemic era.