Several Factors Affecting Marketing Performance and Competitive Advantage in Micro, Small, and Medium Enterprises in Berau Regency

This study aims to analyze the influence of marketing communication strategies, selling prices, and product innovation on competitive advantage through marketing performance in MSMEs in Berau Regency. The research is motivated by the low competitiveness of MSMEs and the need to strengthen marketing strategies amidst a dynamic business environment. A quantitative approach was used with the Partial Least Squares–Structural Equation Modelling method. The sample consisted of 60 MSMEs selected based on the criteria of active business ownership and completeness of research data. Data were collected through questionnaires distributed to MSME actors through various associations, including Rumah Kemas Bartiwakkal, Diskoprindag, Rumah BUMN Pertamina, Hands on, and other related communities. The results show that marketing communication strategies and product innovation have a significant positive effect on competitive advantage, while price does not have a significant effect. Marketing communication strategies and prices have a significant positive effect on marketing performance, but product innovation does not have a significant effect. Marketing performance has a significant positive effect on competitive advantage but does not mediate the relationship between the three independent variables and competitive advantage. These findings emphasize the importance of strengthening more targeted communication and innovation strategies to improve the competitiveness of MSMEs in Berau Regency.