The role of marketing innovation, market orientation, competitive business advantage and government support on micro-business survival during the COVID-19

Purpose The COVID-19 pandemic has created major challenges for micro-businesses to survive. This study aims to explore the role of marketing innovation, market orientation, competitive business advantage and government support on micro-business survival in Indonesia during the COVID-19 pandemic. Design/methodology/approach The research data was taken directly from the respondents and analyzed using quantitative approaches. Partial Least Square Structural Equation Modeling was taken to test the research hypothesis. Findings This study finds that marketing innovation has an important role in creating sustainable competitive advantage for micro-enterprises based on differentiation, cost leadership and focus strategies as well as company survival during the COVID-19 pandemic. The authors also find that competitor orientation and government support played a crucial role in the survival of micro-business during the economic turbulence in Indonesia. Research limitations/implications This research was conducted with a quantitative approach so that the results were not confirmed with the owner of micro-businesses in detail. Therefore, further research is needed with a qualitative approach. Another limitation is the sample was only taken from two regions, so it cannot be generalized. However, the results of this study can be used as a reference by micro-business stakeholders in managing business during economic turbulence. Practical implications In an unpredictable business environment such as COVID-19, companies must find various ways to survive. Improving marketing innovation skills such as digitalizing marketing to reach a wider market is something that micro-businesses must do. The right competitive advantage strategy approach, such as differentiating products, cost leadership to determining the right focus strategy, is an important point to survive. The government must also take the right policies to save micro-businesses from bankruptcy during economic turbulence, such as providing margin subsidies and other policies such as debt payment relaxation. Originality/value This study explores the role of marketing innovation, market orientation, competitive business advantage and government support on micro-business survival during economic turbulence. In the literature, the relationship of these variables has not been well integrated. The main contribution of this study is to bridge the gap between theory and practice in the micro-business survival in conditions of uncertainty, especially in Indonesia.