Shabnam Latifi - Graduated with a master's degree in accounting, Tehran Azad University of Science and Research,

This study investigates the role of innovations in generating a competitive advantage within the frozen food industry, with a focus on small and medium-sized enterprises (SMEs). The research process comprises three key phases: ۱. Literature Review: The initial phase involves a comprehensive review of existing articles related to the topic. ۲. Experimental Research: The study employs a questionnaire as a data collection tool to conduct experimental research. ۳. Analysis and Conclusion: The research results are analyzed and summarized using various statistical techniques, including exploratory factor analysis (EFA), confirmatory factor analysis (CFA), and structural equation modeling (SEM). The findings indicate that innovation plays a pivotal role in enhancing competitive advantages, primarily through external factors. These external factors can be categorized into two main groups: micro-oriented factors and macro-oriented factors. Notably, micro-level external factors exert a more significant influence on innovation development within the frozen food industry than macro-level factors. The study underscores the importance of entrepreneurs, particularly SME entrepreneurs, in adapting swiftly and preparing for forthcoming economic changes, not only on a global scale but also within regional and national contexts. In addition to internal organizational considerations, external factors, particularly those fostering innovation, are of paramount significance. In the fiercely competitive landscape, innovation emerges as a strategic tool for enhancing, creating, and promoting businesses, with the ultimate goal of achieving a competitive advantage that is on par with or superior to the advantages enjoyed by foreign counterparts, thereby facilitating sustainable development

Competitive advantage, innovation, market orientation