THE DETERMINANTS AND CONSEQUENTS OF COMPETITIVE ADVANTAGE BASED OF LOCAL WISDOM AT THE MICRO, SMALL, AND MEDIUM ENTERPRISE : EVIDENCE FROM INDONESIA

Abstract

The long-term objective of this research is to build a new paradigm of competitiveness of MSMEs
products based on Local Wisdom so that MSMEs not only produce products with certain advantages but are
also expected to have their own uniqueness according to their local wisdom. compete in the global market,
especially in the era of the industrial revolution 4.0. Data collection was carried out using a questionnaire. The
sampling technique uses sampling convenience. The questionnaire was distributed to 400 MSMEs actors in
Pamekasan district as samples and the data were analyzed using the Structural Equation Model program. The
results of this study indicate that Organizational Learning Capability and Organizational innovation have a
positive and significant effect on the Competitiveness of MSMEs based on Local Wisdom, and Competitiveness
of MSMEs based on Local Wisdom have a positive and significant effect on the MSMEs performance .