Abstract
In the current dynamic business environment, the competition is getting stiffer and performance organizational becomes an issue, the characteristics that occurred in the industrial revolution 4.0. This condition requires organizations to increase their performance to be sustained. Competence and knowledge management as internal resources that refer to RBV are strengths that are very important as predictors in improving performance. For this reason, the study has explored the indicators of each of the predictors and also test the relationships between a latent variables that have been hypothesized. This research focuses on the industrial chemical manufactur in Banten Province Indonesia which is become the province with the third-largest number of chemical firms in Indonesia. Regarding the central bureau statistics of Indonesia, the values of productivity, and human resources capability from the downstream chemical manufacturing sector below the target. This research using the SEM-PLS method to measure 97 respondents from the level supervisor and managerial. The final results provide a positive and significant relationship between competence and knowledge management through competitive advantage and organizational performance. Competitive advantage also increases the relationship between competence and knowledge management through organizational performance. This result has implications for managerial levels to increase human resources performance so it can improve the firm competitive advantage.
Highlights
An increasingly competitive market and consumer awareness of the quality of products purchased at competitive costs, as well as product trends that change according to customer demands have changed the industrial business to be more dynamic (Ko, 2015)
This study aims to obtain the best model in explaining the influence of competence, knowledge management and competitive advantage on organizational performance in the chemical manufacturing sector
The role of competitive advantage on organizational performance is very important, this can be proven where competitive advantage is able to increase the influence of competence and knowledge management on organizational performance
Summary
An increasingly competitive market and consumer awareness of the quality of products purchased at competitive costs, as well as product trends that change according to customer demands have changed the industrial business to be more dynamic (Ko, 2015) This competition started in 1990 when the market was intensified to get the right products and services to their place in a fast and low cost manner (Li et al, 2006). Competitive advantage is defined as the ability of an organization to maintain a defensive position against its competitors (Li et al, 2006) with indicators of each being price, quality, delivery, dependability, product innovation, and time to market This is in line with the formulation of competitive advantage proposed by Porter (1985) for companies, namely low cost or product differentiation. In the last 4 years, there has been a very significant decline in growth in the chemical manufacturing sector in Indonesia where the economic growth value of this sector is still below the national economic growth
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