Production, innovation, and creativity management model of MSMEs F&B service in Makassar City, Indonesia

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.