THE STRATEGIC ROLE OF ENTREPRENEURIAL ORIENTATION AND MARKET ORIENTATION IN REALIZED COMPETITIVE ADVANTAGE OF CREATIVE INDUSTRY MSMES IN TANA TORAJA REGENCY IN THE ERA OF REVOLUTION 5.0

Abstract The digital transformation marked by the Industrial Revolution 5.0 era has created both challenges and new opportunities for creative industry MSMEs, particularly in the Tana Toraja region, which boasts unique cultural and economic potential. In this context, entrepreneurial orientation and market orientation are two key strategies believed to be able to drive sustainable competitive advantage. This study aims to empirically analyze the strategic role of these two orientations in enhancing the competitiveness of creative industry MSMEs in Tana Toraja Regency. Using a quantitative approach with Partial Least Square–Structural Equation Modeling (PLS-SEM), data were collected from 120 local creative MSMEs selected through purposive sampling. The analysis shows that both entrepreneurial orientation and market orientation significantly and positively influence competitive advantage. These findings indicate that courage in taking risks, continuous innovation, and a deep understanding of market needs are key determinants in creating added value and product differentiation amidst digital competition. The practical implications of this study emphasize the importance of innovation- and market-based development for local MSMEs, as well as the need for adaptive policy support from the local government to accelerate the adoption of digital transformation. Theoretically, this study strengthens the conceptual framework of the relationship between strategic orientation and competitive advantage in the context of the regional creative economy in the 5.0 era.