INCREASING MARKETING PERFORMANCE OF MSME NATURAL MATERIAL CRAFTS PRODUCTS IN CENTRAL JAVA THROUGH NURTURING ICONIC PRODUCT INNOVATION (EMPIRICAL STUDY ON MSMES IN NATURAL MATERIAL CRAFTS IN INDONESIA)
This study aims to build a new concept called Nurturing Iconic Product Innovation to address research gaps of the innovation towards competitive advantage to optimize marketing performance. This novelty was obtained from the relevant theoretical studies and tested in empirical research conducted on MSMEs of crafts from natural materials in Indonesia.The data was collected empirically to 125 MSME sectors of natural material craft. This study used Purposive sampling. This research applied Structural Equation Model (SEM) analysis with AMOS software to test the model and hypotheses. The result shows that seven of eight hypotheses proved to have a significant effect, meanwhile, the other one hypothesis was not accepted. This statistical evidence strengthens the role of nurturing iconic product innovation in bridging the gap between the ability to innovate and competitive advantage towards the performance of MSMEs. This research is aimed to enrich the literature and provide scientific contributions related to the development of MSME performance models. The managerial implications and research agenda are also discussed in this article.