Strengthening MSME Competitiveness through the IPO Model of the CreativeBiz Incubation Program in Palu within an Islamic Economic Framework

Abstract

This study analyzes how the Input–Process–Output (IPO) model within the CreativeBiz Incubation Program enhances the competitiveness of Micro, Small, and Medium Enterprises (MSMEs) in Palu City through an Islamic economic perspective. Using a descriptive qualitative approach, data were collected via in-depth interviews, observations, and documentation involving incubator managers and MSME participants. The data analysis applied Miles and Huberman’s interactive model, including data reduction, display, and conclusion drawing. Findings indicate that the IPO model is implemented systematically and effectively. At the input stage, success factors include competent human resources, supportive local government policies, cross-sector partnerships, and the integration of digital technology. In the process stage, MSME development is driven by empowerment, mentoring, and innovation, with a focus on managerial capacity, legal compliance, product branding, and digital transformation. The output stage shows increased performance, income, product quality, and market access among participants. From the Islamic economic lens, program success transcends financial outcomes, emphasizing values like shiddiq (honesty), ‘adl (justice), and maslahah (benefit). These principles have fostered ethical business practices and social responsibility, promoting a balance between material success and spiritual well-being. The study concludes that the IPO model serves as a practical evaluative tool for incubation programs and can be effectively aligned with Islamic economic principles to foster sustainable, inclusive MSME growth. These insights contribute to the development of value-based incubation models tailored to regional contexts.