Formulating Strategic Innovation among Women Entrepreneurs

Formulating Strategic Innovation among Women Entrepreneurs
Published by
David Kevin Handel Hutabarat
Published at
Tuesday, 09 December 2025

This article examines an in-depth study on innovation strategies and competitive advantage among women entrepreneurs in Medan, emphasizing human capital, digitalization, and socio-cultural challenges. The findings present strategic frameworks to strengthen women-led MSMEs and guide more inclusive empowerment policies.
In the landscape of Indonesian entrepreneurship that continues to evolve, the role of women entrepreneurs has now become a focal point in national economic discourse. Amid the dynamics of digitalization, human resource transformation, and increasingly complex demands for innovation, scientific research emerges as an essential tool to map issues, formulate strategies, and ensure that micro, small, and medium enterprises (MSMEs) not only operate, but are able to compete sustainably. This is the starting point of the study Success Strategies for Womenpreneurs to Improve Innovative Performance and Competitive Advantage—a collaborative research project involving five academics across universities, with Ritha F. Dalimunthe as the corresponding author and the primary driver of the conceptual framework of this research.
As an academic from Universitas Sumatera Utara who has long researched women’s economic empowerment and social entrepreneurship transformation, Ritha brings a strategic perspective on how the capacity of women entrepreneurs can be strengthened through human capital approaches, digitalization, and innovation. In Ritha’s hands, this study is not merely an empirical report on the conditions of women entrepreneurs in Medan; it evolves into a deep analytical framework on the foundation of competitiveness for women-led MSMEs in the digital economy era.
This study began with one fundamental question: why do women entrepreneurs—despite their significant numbers—still face barriers in improving competitiveness and innovation? Data from the Ministry of Cooperatives and SMEs affirms that MSMEs employ nearly 97% of Indonesia’s workforce and contribute more than 60% of national GDP—and much of this is driven by women. Yet paradoxically, women entrepreneurs often face structural obstacles such as low digital literacy, limited HR quality, restricted access to capital, and challenges in building innovation capacity.
Ritha views this gap as a scientific space that must be filled, not only for academic contribution but also as a form of the university’s social responsibility to the community. Together with her team, she developed a study that not only analyzes the behavior of women entrepreneurs but also proposes a strategic framework for enhancing innovation and competitiveness.
This research uses a descriptive–qualitative design to strengthen the depth of analysis. By involving 57 women entrepreneurs in Medan through in-depth interviews, Focus Group Discussions (FGDs), field observations, and structured surveys, Ritha ensures that the collected data does not stop at numbers but captures the complexity of women’s experiences in running businesses.
The FGD approach also opened a dialogue between women-led MSMEs, local governments, entrepreneurial communities, and academics. This multi-stakeholder involvement reflects Ritha’s vision that research must link universities with the broader socio-economic ecosystem.
One of the important contributions of this study lies in its ability to map the challenges of women-led MSMEs using a strong theoretical framework.
Readiness and Mental Capacity of Entrepreneurs
Ritha emphasizes that entrepreneurial readiness is not only about technical skills but also psychological capital: confidence, risk-taking ability, capacity to manage pressure, and belief in one’s potential. The finding that more than 70% of respondents have strong problem-solving skills indicates the presence of substantial psychological capital—capital that needs facilitation, not neglect.Human Resource Quality
Most women entrepreneurs have begun involving employees in training and SOP updates, yet many are still unable to optimize HR management as a pillar of innovation. Here, Ritha highlights the importance of Human Capital Transformation—a concept that places human resources at the core of business excellence.Digitalization as the Axis of Modern Competitiveness
More than half of the respondents already use technology, including social media, but have not fully understood digital branding strategies or the use of technology as a mechanism for business transformation. For Ritha, digitalization is not merely the use of devices but a means to expand networks, increase product value, and strengthen business resilience.
The research data shows a very high level of innovation awareness (over 96% of respondents). However, innovation is not yet balanced by the ability to consistently create new work methods. Ritha interprets this as a manifestation of the double burden experienced by women entrepreneurs—where women often play dual roles: as business owners and as primary figures in domestic responsibilities.
In this context, innovation is not only about creativity but also about the social structures that shape women’s capacity to innovate. This study provides a new lens on how socio-cultural contexts influence innovation patterns among women-led MSMEs.
Ritha emphasizes that competitive advantage does not emerge from a single dimension but from the integration of various strategies such as product innovation, quality improvement, marketing planning, the ability to identify business opportunities, and full responsibility over business operations. The finding that 97% of women entrepreneurs demonstrate high commitment toward business responsibilities underscores that internal factors within women are essential foundations for business sustainability.
FGDs revealed real issues faced by women-led MSMEs in Medan. Among them were difficulties in obtaining halal certification before the October 2024 deadline, disparities in product durability between Medan MSMEs and similar products from Java, the importance of technologies such as vacuum frying, the role of communities (IWAPI, Forum Muslimah) as providers of social capital, and the need for government support in production equipment and technical training.
This is where Ritha’s contribution as an academic becomes evident: she not only collects data but identifies patterns that can serve as a basis for policy recommendations. This study provides scientific arguments that empowerment of women-led MSMEs must be positioned as part of regional economic development strategies.
Formulating the Framework: Human Capital Transformation & Social Entrepreneur Strengthening
Two key concepts proposed by Ritha and the team form the core of this research:
Human Capital Transformation Framework, focusing on:
• digital literacy,
• human resource management,
• adaptability,
• innovation understanding.Social Entrepreneur Strengthening, which views women-led MSMEs not merely as economic entities but as social actors influencing family welfare and community structures.
From an academic standpoint, these frameworks demonstrate Ritha’s ability to integrate economic, managerial, and social theories into strategic, data-driven recommendations.
Academic Contribution and Research Significance
This research not only enriches literature on women-led MSMEs but also provides important contributions to regional MSME policy development, strengthening entrepreneurial ecosystems for women, digital literacy for MSMEs, and gender-based entrepreneurship studies.
As the corresponding author, Ritha F. Dalimunthe serves as a central figure in crafting an elegant and relevant scientific narrative for regional economic development needs. She not only presents analysis but maps out solutions that stakeholders can apply.
Paper Details
- Universitas Sumatera Utara (USU), Medan, Indonesia
- Universitas Gadjah Mada (UGM), Yogyakarta, Indonesia