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.