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In this era of increasingly rapid technological progress that will encourage innovation by business actors in marketing their products, one thing that can be done is to carry out a marketing transformation, from conventional marketing to digital marketing. Also the competitive advantage and managerial capabilities of the coffee shop business continue to be improved. The aim of this research is that radical innovation and competitive advantage influence the performance of MSMEs through management capability in coffee shop businesses. Quantitative method with data collected by filling out an online questionnaire (Google form) with a total of 124 respondents selected using probability sampling with the criteria of MSME coffee shop business six months to one year running and the data was analyzed using SEM-PLS analysis. This analysis is to measure the results of each indicator of radical innovation, competitive advantage, management capability and MSME performance and to see the results in developing the coffee shop business. The results of this research show that radical innovation and competitive advantage have a significant effect on the performance of MSME coffee shop businesses through the mediating variable management capability. Keywords: coffee shop business; radical innovation; competitive advantage; management capability; MSME performance
Mahmud et al. (Fri,) studied this question.