The Role of Product Innovation in Enhancing the Competitiveness of Fish Processing SMEs in the IKM Center of Tarakan

This research is titled "The Role of Product Innovation in Enhancing the Competitiveness of Fish Processing SMEs in the IKM Center of Tarakan." The objective of this study is to analyze the impact of product innovation on the competitiveness of Small and Medium Enterprises (SMEs) in the fish processing sector at the IKM Center of Tarakan. The method used is a quantitative approach involving 50 SMEs registered in the IKM development program, utilizing purposive sampling technique. The independent variable in this study is product innovation, while the mediating variable is service quality, and the dependent variable is the competitiveness of SMEs. Data analysis was conducted using the SEMPLS method with SmartPLS 3 software. The results indicate that product innovation has a positive and significant effect on service quality and the competitiveness of SMEs. These findings suggest that enhancing product innovation can improve service quality, which in turn contributes to increasing the competitiveness of SMEs in the market. This study provides important insights for SME practitioners and stakeholders in formulating effective strategies to enhance competitiveness through product innovation.