Abstract

The purpose of this study is to empirically examine the mediation role of innovation ambidexterity on the impact of absorptive capacity on sustainable competitive advantage from the previous researchers' data article publication. A survey of academic and non-academic staff from sixty four private higher education institutions (PHEIs) in Bandung, West Java, Indonesia was conducted for the research. A total of five hundred and thirty completed questionnaires from 478 academic and 52 non academic staff were statistically analyzed using SPSS and smart PLS. Investigating sustainable competitive advantage related issues for PHIEs in Indonesia is important for a number of reasons, including supporting the vision of the Golden Indonesia generation 2045. Moreover, the impact of absorptive capacity on sustainable competitive advantage in the literature is remains unclear, thus a new theoretical framework is needed related to the concept of ambidexterity. The finding of this research shows that innovation ambidexterity partially mediates the effect of absorptive capacity on sustainable competitive advantage as proposed in the hypothesis. The implications of this study are discussed.

Highlights

  • (3) This study aims to build and empirically test a new theoretical framework developed by the construct of absorptive capacity, innovation ambidexterity that affects the sustainable competitive advantage that has never been done before for the context of Indonesian non vocation private higher education institutions (PHEIs) as a country with great potential to become one of the developed countries in Asia using multi-respondent

  • The data are collected from 64 organizations of non-vocational PHEIs and has been meet the Smart PLS minimum sample requirement (Hair et al, 2017)

  • After pass the expert judgement, the process continue with the pilot test to check the instruments validity and reliability using SPSS for 40 respondents from 40 non-vocational PHEIs

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Summary

Introduction

The industrial revolution 4.0 era, even society 5.0 (Salgues, 2018) characterized by dynamic organizational changes or VUCA (Volatility, Uncertainty, Complexity, Ambiguity) conditions (Xing, Liu, Boojihawon, & Tarba, 2019) that have several impacts including: (1) business competition is getting tougher (Raharjo & Fernandes, 2018). (2) There is a transformation of the business model from traditional business (Rahma, Astuti, Utami, Raharjo, & Arifin, 2018). (3) Organizations must be able to adjust flexibly (Pangarso, 2014). (4) There is a critical role of knowledge (Shahriari, Abzari, Isfahani, & Kianpour, 2018) so organizations can innovate (Raghuvanshi, Ghosh, & Agrawal, 2019). Sustainable competitive advantage is influenced by the ability of an organization to absorb knowledge from outside organization to subsequently produce innovations simultaneously between incremental innovation (through the process of exploitation) and radical innovation ( through the process of exploration). The theory that supports the impact of absorptive capacity on innovation is the dynamic capability theory (Teece, Pisano, & Shuen, 1997). Absorptive capacity is part of dynamic capability itself (Zahra & George, 2002). Conceptual research, which strengthens the empirical research on the direct influence of absorptive capacity on innovation, have been done by Jurksiene & Pundziene (2016). Jurksiene & Pundziene (2016) suggested the need for empirical research on the direct impact of absorption capacity on innovation Conceptual research, which strengthens the empirical research on the direct influence of absorptive capacity on innovation, have been done by Jurksiene & Pundziene (2016). Jurksiene & Pundziene (2016) suggested the need for empirical research on the direct impact of absorption capacity on innovation

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