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Innovation capability and barriers to entry-based competitive advantage in Indonesian manufacturing companies

Research output: Contribution to journalArticlepeer-review

Abstract

This study aims to explain the effect of innovation capability on competitive advantage through the creation of barriers to entry which includes economies of scale, product differentiation, innovation, and capital requirements. The study was conducted on manufacturing companies listed on the Indonesia Stock Exchange with an observation period of 2010 to 2018. Data were analysed using linear regression analysis. The results of the analysis conclude that the innovation capability has a positive and significant effect on creating barriers for competitors in terms of economies of scale and capital requirements, but product differentiation and innovation are not significantly influenced by the innovation capability. Future studies can develop research models by involving components of competitive advantage based on market/industry indicators.

Original languageEnglish
Pages (from-to)275-290
Number of pages16
JournalInternational Journal of Innovation, Creativity and Change
Volume12
Issue number12
Publication statusPublished - 2020

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 8 - Decent Work and Economic Growth
    SDG 8 Decent Work and Economic Growth
  2. SDG 9 - Industry, Innovation, and Infrastructure
    SDG 9 Industry, Innovation, and Infrastructure
  3. SDG 17 - Partnerships for the Goals
    SDG 17 Partnerships for the Goals

Keywords

  • Capital requirements
  • Economies of scale
  • Innovation
  • Innovation capability
  • Product differentiation

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