Optimizing MSME Business Networks Through Innovation and Digital Platforms for Competitive Advantage

Abstract

Introduction: The relationship between business networks, open innovation, shared value creation, and competitive advantage is an important topic, especially with the role of digital platforms in supporting these processes. This research provides insight into these dynamics.

Objectives: To explore how business networks, open innovation, shared value creation, and competitive advantage influence each other, and to evaluate the moderating role of digital platforms in this relationship.

Methods: The study used a quantitative approach with data analysis to test the relationship between the variables. A cross-sectional approach was applied to collect data.

Results: Business networks significantly enhance open innovation, which in turn enhances competitive advantage and value co-creation. Value co-creation directly affects competitive advantage. The direct effect of business networks on value co-creation and competitive advantage is insignificant, so the effect is mediated by open innovation. Digital platforms have a positive effect on open innovation, but their moderating role on other relationships is limited.

Conclusions: Businesses must build strong networks to drive open innovation and value co-creation to enhance competitive advantage. Digital technology must be leveraged to support collaboration and innovation processes. This study has limitations, such as limited sample size and a cross-sectional approach that does not capture time dynamics. Future research is recommended to use larger samples, a longitudinal approach, and explore other moderating variables.