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http://dx.doi.org/10.13106/jafeb.2021.vol8.no2.0911

Antecedents of Sustainable Competitive Advantages: A Case Study of Palm Oil Industries in Indonesia  

HERIYANTO, Meyzi (Department of Business Administration, Universitas Riau)
FEBRIAN, Achmad Fajri (Department of Business Administration, Universitas Riau)
ANDINI, Frini Karina (Department of Business Administration, Universitas Riau)
HANDOKO, Tito (Department of Government Studies, Universitas Riau)
SURYANA, Dodi (Department of Guidance and Counseling, Universitas Pendidikan Indonesia)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.2, 2021 , pp. 911-921 More about this Journal
Abstract
Indonesian oil palm plantation industry has chance to increase a sustainable competitive advantage. The creation of a sustainable competitive advantage is determined by the ability of the palm oil industry to utilize limited resources and capabilities. The purpose of this study was to analyze the determinants of the creation of sustainable competitive advantage (SCA) in the palm oil industry in Riau, Indonesia. The model framework uses organizational-level SCA dimensions. Four dimensions are used to measure SCA in the palm oil industry in Riau, namely value, scarce resource, inability to replicate, irreplaceable. Questionnaires were distributed to oil palm industry players in Riau with 81 respondents. The analysis technique uses Structural Equation Model with Partial Least Square (SEM-PLS). The results showed that the SCA in the palm oil industry in Riau was at a moderate level. Although the competitive advantage of being sustainable in the palm oil industry in Riau is in the medium category, test results on SCA dimensions found that each latent variable forms a significant SCA framework with a reflective constructive relationship model. The three dominant and recommended dimensions that shape the construction of SCA in the palm oil industry are value, scarce resource, and irreplaceable.
Keywords
Sustainable Competitive Advantage; Rare Resources; Non-Substitutable;
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