DOWNSTREAMING VILLAGE PRODUCTS TO URBAN MARKETS: A Strategy for Competitive Advantage in Local MSMEs

doi:10.36782/jcs.v6i2.2034

DOWNSTREAMING VILLAGE PRODUCTS TO URBAN MARKETS: A Strategy for Competitive Advantage in Local MSMEs

Muchammad Firman Mauludin, Eny Yuniyati, Pesta Asni W. Napitupulu, Achmad Mamduh

Abstract

Economic globalization has intensified competition, requiring local MSMEs to adopt adaptive strategies to survive and grow. One promising approach is downstreaming village products into urban markets, which enhances value through processing, packaging, and branding while reinforcing local identity. This study explores how downstreaming contributes to MSME competitiveness by integrating product innovation, storytelling, distribution, and digital technology. Using a qualitative interpretive case study, data were collected through interviews, field observations, and documentation of rural MSMEs engaged in urban market penetration. Thematic analysis, guided by the Resource-Based View framework, reveals that downstreaming not only increases product value but also differentiates MSMEs through local identity and digital integration. Entrepreneurial competencies and education further strengthen an orientation toward innovation and adaptability. The findings suggest that MSMEs should prioritize product transformation, branding, and digital strategies, with mentoring support, to build a sustainable competitive advantage. Conceptually, the study positions downstreaming as a strategic pathway for local economic empowerment and as a valuable contribution to entrepreneurship and competitive advantage literature.

Cite this article:

Mauludin, M. F., Yuniyati, E., Napitupulu, P. A. W., & Mamduh, A. 2016. Downstreaming Village Products to Urban Markets: A Strategy for Competitive Advantage in Local MSMEs. Journal Communication Spectrum, Vol. 6(2), 203-215

Keywords

Product Innovation; Storytelling Communication; Digital Integration; Entrepreneurial Competency; Sustainable Competitive Advantage

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