ROLE OF COGNITIVE ABILITY TO COMPETITIVE ADVANTAGES WITH PRODUCT DEVELOPMENT AS INTERVENING VARIABLES (CASE STUDY ON MSME'S CIBADUYUT, BANDUNG CITY)

Abstract

This study aims to determine the role of cognitive ability on competitive advantage with product development as an intervening variable in the CibaduyutMSME’s, Bandung City. This study used a descriptive verification approach, 121 MSME’s owners were sampled and the technique used was SEM with Amos version 21 software. Primary data from this study were obtained from a questionnaire. Meanwhile, secondary data were obtained through notes and publications and literature. The results showed that the variable cognitive ability had a positive and significant effect on competitive advantage and product development, and product development had a positive effect on competitive advantage through mediation of satisfaction. This study is proposed to determine the aspects of cognition which are related to competitive advantage at MSME’sCibaduyut, Bandung City. This research emphasizes on the cognitive aspects that have an impact on competitive advantage, especially on MSME’s and the results of the research are expected to expand the treasury of management literature, especially in the field of Marketing