The Effect of Product Innovation, Process Innovation, and Customer Experience Innovation on Competitiveness in the Tiktok Shop Market

Aura Niesha Sabillah

doi:10.63922/ijebir.v5i04.5434

Aura Niesha Sabillah Management Studies Program, Faculty of Economics and Business, Pancasila University

DOI: https://doi.org/10.63922/ijebir.v5i04.5434

Keywords: Product Innovation, Process Innovation, Customer Experience Innovation, Business Competitiveness, Tiktok Shop, Social Commerce

Abstract

The rapid growth of social commerce has intensified competition among businesses operating on digital platforms, making innovation an essential factor in achieving competitive advantage. This study aims to examine the effects of product innovation, process innovation, and customer experience innovation on the competitiveness of business actors in the TikTok Shop marketplace. A quantitative explanatory approach with a cross-sectional survey design was employed. Data were collected through an online questionnaire from 100 TikTok Shop business owners, managers, and store administrators selected using purposive sampling. The data were analyzed using descriptive statistics, multiple linear regression, and hypothesis testing, including the t-test, F-test, and coefficient of determination (R²). The findings indicate that product innovation (β = 0.227, p = 0.005), process innovation (β = 0.404, p < 0.001), and customer experience innovation (β = 0.303, p < 0.001) each have a positive and significant effect on business competitiveness. Simultaneously, the three innovation variables significantly influence competitiveness (F = 59.032, p < 0.001), explaining 64.8% of the variance in business competitiveness (R² = 0.648). Among the three variables, process innovation has the strongest influence on competitiveness. These findings suggest that integrating product innovation, process innovation, and customer experience innovation is an effective strategy for strengthening business competitiveness in the increasingly competitive TikTok Shop marketplace.

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