Competitive Advantage in Indonesian Pharmaceutical Raw Material Companies: Effect of External Integration, Agility, and Innovativeness

Bayu Putro Wibisono; RR. Ratih Dyah Kusumastuti

doi:10.31289/jkbm.v10i2.11728

Authors

Bayu Putro Wibisono Universitas Indonesia
RR. Ratih Dyah Kusumastuti Universitas Indonesia

DOI:

https://doi.org/10.31289/jkbm.v10i2.11728

Keywords:

External Integration, Supply Chain Agility, Innovativeness, Competitive Advantage

Abstract

Indonesian pharmaceutical raw material companies have an important position in the supply chain of drug products because 90-95% of pharmaceutical raw materials are still imported. Therefore, it is very important to measure the ability of pharmaceutical raw material companies to maintain the pharmaceutical supply chain in Indonesia. The aim of this study is to evaluate and examine the impact of External Integration (EIN), Supply Chain Agility (SCA), and Supply Chain Innovativeness (SCI) on compe-titive advantage (KK). This study also explored the mediation role of SCA and SCI in the relationship between EIN and KK. This study involved 84 Pharmaceutical raw material companies and used quanti-tative method with partial-least squares structural equation modeling (PLS-SEM) as the analysis tool. The results showed that EIN had a positive and significant effect on SCA, SCI, and KK. Furthermore, the findings indicated that SCA positively and significantly influenced KK. Additionally, SCA played a mediating role in the correlation between EIN and KK. However, the effect of SCI on KK and its mediating role were not supported by the data. This indicates that the capabilities of EIN and SCA play an important role in im-proving the KK of pharmaceutical raw material companies in Indonesia

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