The Effect of Market Orientation, HR Competence, Knowledge Management on Competitive Advantage, Mediated by Company Performance

Abstract

Purpose: The condition of competition between coal mining contractors causes the company leaders to manage the company and try as optimally as possible to get a competitive advantage compared to other similar companies. This study discusses the relationship of Competitive Advantage built from Market Orientation variables, HR Competence, and Knowledge Management to the performance of coal mining contractors in a comprehensive manner. It explains the transformation process of Company Performance to Competitive Advantage. Research implications: A research population is a number of 37 Coal mining contractors in Indonesia, including employees who are directly involved in strategic decision making in the company, namely the Project Head, Head Office Manager, and Director as respondents. Based on these data, Smart PLS 4 software processes structural parameter estimates according to the relational model described in the study's conceptual framework. Results and conclusion: The results showed that Market Orientation, Knowledge Management and Company Performance have a significant effect on Competitive Advantage, Quality of Human Resources, Market Orientation and Knowledge Management also has a direct effect on Company Performance, but Quality of Human Resources has no significant effect on Competitive Advantage. While the Company's Performance is a Full Mediation of the Quality of Human Resources on Competitive Advantage. Originality/value: This research contributes to the development of RBV theory, especially the study of company performance on competitive advantage in a resource-based view perspective through market orientation, HR competence, knowledge management, and the practice of applying SECI knowledge to this research object, which is proven to be able to increase competitive advantage. Theoretical reference: The originality of the theoretical model in this study contributes to the development of the RBV theory, the implementation of the concept of Competitive Advantage regarding the integration of internal key resources between intangible and capability aspects of coal mining contractors.