Enhancing Sustainable Competitive Advantage: The Role of Dynamic Capability and Organizational Agility in Technology and Knowledge Management: Indonesian Stock Exchange Evidence

The purpose of this study is to examine the correlation between technical innovation and knowledge management in connection to dynamic capability and organizational agility, as well as their collective impact on sustainable competitive advantage. The primary objective of this study revolves around the analysis of infrastructure and technology businesses that are listed on the Indonesia Stock Exchange (IDX). The present work used the structural equation model (SEM) method for data analysis, utilizing the WarpPLS application. The results indicate that there is a significant positive relationship between Technological Innovation (X1) and both Dynamic Capability (Y1) and Organisational Agility (Y2). However, the impact of this factor on Sustainable Competitive Advantage (Y3) was determined to be inconsequential. The research findings indicate that the implementation of Knowledge Management (X2) has a noteworthy and favorable impact on Dynamic Capability (Y1), Organisational Agility (Y2), and Sustainable Competitive Advantage (Y3). In addition, it is shown that Dynamic Capability (Y1) has a substantial and positive impact on Organisational Agility (Y2) and Sustainable Competitive Advantage (Y3). Similarly, Organisational Agility (Y2) demonstrates a significant and positive influence on Sustainable Competitive Advantage (Y3). The results mentioned above provide insights into the significant impact of Technological Innovation and Knowledge Management on the enhancement of Dynamic Capability and Organisational Agility. Ultimately, these factors contribute to the achievement of Sustainable Competitive Advantage within Indonesian infrastructure and technology firms.