Abstract:
This study aims to develop and test a production management model that mediates innovation and creativity to improve the performance of MSMEs in Makassar City. This
study uses a quantitative approach with data collection techniques through a structured
survey of 193 food and beverage (F&B) service MSME actors. It was analyzed using
SmartPLS-based Structural Equation Modeling (SEM) to identify the relationship between
production management variables, innovation, creativity, and business performance. The
research findings of the study create a strategic model that includes three main components: (1) Increasing operational efficiency through standardization of production
processes and application of technology. (2) Development of product and service
innovations based on market needs. (3) Strengthening creativity through training, cross
sector collaboration, and human resource empowerment. This model is expected to be a
strategic reference for F&B MSMEs to improve operational efficiency, innovation, and
competitiveness in facing the challenges of the ever-evolving market. Contributing
significantly to the MSME management literature, especially in the context of
integrating production management, innovation, and creativity in the F&B service
sector. The Makassar City government needs to provide access to innovation and
creative assistance to encourage an integrated business ecosystem.
