Competitive Advantagein Increasing Income in Indonesia Small and Medium-Sized Businesses Increasing

Purpose: This research aims to look at important factors in increasing competitive advantage. SMEs need a competitive advantage to compete in the era of the industrial revolution 4.0, where industries have touched cyberspace, resulting in human, machine, and data connectivity, all of which are vying to survive and be the best. Theoretical framework: The goal of strategic thinking and the primary focus in achieving business success is competitive advantage (Hunitie, 2018). According to (Greenhow & Galvin, 2020), social media is a collection of mobile or web-based technologies that allow people to interact with and share various types of content. Innovation is a level of change in the development of new products and the introduction of new products into the market (Habib, Kristiansen, Rana, & Ritala, 2020). Market orientation, in general, refers to the fundamental orientation that governs a company's relationship with its market, and more specifically with its customers (Bamfo & Kraa, 2019). Method:This study uses an explanatory research approach to examine the influence of social media, innovation, and market orientation on competitive advantage. The population of this research is SMEs in East Java Province, Indonesia. Quantitative data from SMEs was obtained from 294 respondents who provided responses in the form of a questionnaire. By using Smart PLS, social media, innovation and market orientation that can help SMEs gain a competitive advantage. Result and conclusion: The results of this research are that SMEs must always utilize social media to carry out promotions in an effort to gain an identity of competitive advantage so that they are easily recognized by the market, then carry out product innovation so that the products offered are not easily imitated by competitors. so that it becomes a competitive advantage, and is market oriented to maintain competitive advantage for business sustainability. Thus, it can be concluded that social media, innovation and market orientation can increase the competitive advantage of SMEs. Implication of research: SMEs must have management capabilities and company information technology through social media to promote in an effort to gain an identity of competitive advantage so that they are easily recognized by the market. Innovations carried out by SME entrepreneurs in effective and efficient product development are able to produce products that are difficult for competitors to imitate, thus creating a competitive advantage. It is important for SME entrepreneurs to understand market orientation so they are able to understand consumer needs and competitors' abilities in order to gain a competitive advantage in winning business competition. Originality/value: The novelty of this research is the formation of a theoretical model of social media, innovation and market orientation in increasing the competitive advantage of SMEs. SME entrepreneurs must have management and company information technology capabilities through social media, innovate in effective and efficient product development, and understand market orientation in order to gain a competitive advantage in winning business competition.