Innovation, product quality and sustainable competitive advantage: Cornerstones of creative industry success in South Sulawesi tourism

Abstract

The creative industry’s influence on the tourism sector in South Sulawesi is investigated in this study, with a particular emphasis on the factors that contribute to the sector’s success. The research uses a quantitative technique to examine the effects of innovation, product quality, and competitive advantage on the performance of enterprises in the creative economy. Using the Partial Least Square (PLS) Structural Equation Model (SEM), an analysis was performed on a sample of 213 creative industry participants in tourist regions that were recognized as such. The data indicate a strong association between innovation, product quality, and sustainable competitive advantage. All of these factors considerably improve business performance in the creative sector. According to the study’s findings, maintaining a competitive advantage is essential for the economic viability of creative firms operating within the tourism sector in South Sulawesi over the long term. The stakeholders are provided with a strategic framework by these insights, which assists them in navigating the ever-changing problems and opportunities in this dynamic market.

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