The Effect Of Creativity And Product Innovation On The Success Of Small And Medium-Sized Enterprises In Medan Pancing

Stefani Br Tarigan; Natasya Alfitriya; Octavia Berliana  Lumbanraja; Ryan Chandra  Dalimunthe; Malik Ramadhan; Deni Adriani

doi:10.63922/ijebir.v5i06.6780

Stefani Br Tarigan Faculty of Economics and Business, Universitas Negeri Medan
Natasya Alfitriya Faculty of Economics and Business, Universitas Negeri Medan
Octavia Berliana Lumbanraja Faculty of Economics and Business, Universitas Negeri Medan
Ryan Chandra Dalimunthe Faculty of Economics and Business, Universitas Negeri Medan
Malik Ramadhan Faculty of Economics and Business, Universitas Negeri Medan
Deni Adriani Faculty of Economics and Business, Universitas Negeri Medan https://orcid.org/0000-0002-0566-2156

DOI: https://doi.org/10.63922/ijebir.v5i06.6780

Keywords: Creativity, Innovation, Business Success

Abstract

This study aims to find out how creativity and product innovation affect the success of small businesses in Medan Pancing, by looking at each factor separately and also how they interact with each other. This study uses a quantitative method and looks at how different factors are connected. The study selected 40 business people from the Medan Pancing area in Medan City, North Sumatra Province, using a purposive sampling method. Data was collected using a Likert scale questionnaire and then examined using multiple linear regression methods with the help of IBM SPSS software. The study shows that creativity has a positive and significant impact on business success (the t-value of 3.421 is higher than the critical t-value of 2.02439, and the significance level is 0.002). Additionally, product innovation also has a positive and significant effect on business success (the t-value of 6.545 is higher than the critical t-value of 2.02439, and the significance level is 0.000). Product innovation has a bigger impact than creativity. At the same time, creativity and product innovation have a strong and positive impact on business success (F-count 134.438 is higher than F-table 3.25; significance level 0.000). The R squared value of 0.879 means that 87.9% of what makes a business successful can be explained by these two factors. These results show that small businesses need to keep focusing on being creative and coming up with new product ideas all the time if they want to stay competitive and make sure their businesses can last long-term.

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