Competitive Advantage in Mediating the Influence of Product Innovation on Financial Performance in Denpasar City Savings and Loan Cooperatives

This study aims to analyze the role of competitive advantage in mediating the influence of product innovation on the financial performance of savings and loan cooperatives in Denpasar City. This study uses a quantitative method with the Partial Least Squares (PLS) approach, employing Structural Equation Modeling (SEM) with SmartPLS 4.1.0. The analysis examines the influence of product innovation on competitive advantage and financial performance, as well as the role of competitive advantage in mediating the impact of product innovation on financial performance. The results indicate that product innovation has a positive influence on the financial performance of cooperatives, both directly and indirectly through competitive advantage as a mediating variable. Thus, competitive advantage plays a significant role as a mediator that strengthens the impact of product innovation on cooperatives’ financial performance.