Dynamic capabilities for leading industries: proof of export commitment of chocolate products

Gyska Indah Harya, Nuhfil Hanani, Rosihan Asmara, dan Abdul Wahib Muhaimin

Abstract: The objective of this research is to create a model of industrial competitive advantage. Sample of respondents in 40 chocolate industries in East Java, Indonesia, using purposive sampling. The Structural Equation Model (SEM) is used in conjunction with the Partial Least Square (PLS) analysis to evaluate the hypothesis that the competitive advantage factor serves as an intervening variable between dynamic capacity factors and corporate performance variables. The dynamic capability variable has a considerable positive influence on the performance variable of the company, which is mediated via the competitive
advantage variable. There is still a paucity of studies demonstrating the relationship between dynamic skills and competitive advantage and none that uses competitive advantage factors to mediate the connection between dynamic capabilities and industry performance. Dynamic capabilities may be obtained by boosting technical innovation, product innovation, employee skills, industrial capital and product development, quality, service, new business transformation and industrial export strength to assure outstanding industry performance. This approach can be implemented by nations with comparable resources and support
for similar socio-political practices. This article is innovative in that it combines the nine-factor model with the diamond porter model, which is the most recent notion of academics for developing a competitive advantage model for the East Java chocolate sector in Indonesia.

Keywords: Competitive Advantage; Dynamic Capabilities; Industry Performance; Nine Factors; Porter Diamond

Date published: 2023-08-21