STRATEGIC INNOVATION MODEL FOR THE SUSTAINABILITY MSMEs OF PASAR BARU TRADE CENTER BANDUNG INDONESIA
Received: 22nd June 2026, Revised: 26th June 2026, 15th July 2026, Accepted: 22nd July 2026, Date of Publication: 31st July 2026
DOI:
https://doi.org/10.20319/pijss.2026.122.3752Keywords:
MSMEs, Sustainability, Digital Barriers, Platform Capability, Strategic InnovationAbstract
This study aims to analyze the relationship between digital barriers, platform capability, strategic innovation, and the sustainability of MSMEs in the Pasar Baru Trade Center in Bandung, Indonesia. The motivation for this study is the decline in visitor numbers, the shift in consumer purchasing behavior towards digital platforms, and the increasing number of abandoned kiosks in the market area. This study uses a qualitative descriptive method with semi-structured interviews, observation, and documentation with 7 MSMEs in the textile, fashion, and batik sectors. Thematic analysis was conducted on the data using NVivo software. The results show that a significant number of MSMEs still face digital barriers, such as a lack of digital literacy, suboptimal technology utilization, and reliance on traditional sales tactics, which lead to reactive and short-term innovation. However, MSMEs that interact with marketplaces, social media, and live broadcasts tend to be more responsive to customer desires and market changes. Furthermore, this study also reveals that platform capability not only supports sales operations but also helps MSMEs develop innovations in products, marketing, and sales approaches, which then contribute to business sustainability. From a resource-based view (RBV) perspective, digital competence, as a significant internal resource, can be considered to enhance the competitiveness and sustainability of MSMEs in the digital era. Therefore, this study develops a strategic innovation model to illustrate how MSME sustainability is influenced by how MSMEs overcome digital barriers, utilize digital platforms, and respond to market changes through strategic innovation.
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