THE MEDIATING EFFECT OF INNOVATION ON INFORMATION TECHNOLOGY CAPABILITY AND SUSTAINABLE COMPETITIVE ADVANTAGE

Abstract

The goal of this study was to examine how innovation mediated the relationship between Information Technology Capability and Sustainable Competitive Advantage(Survey of Galabo Shelter Culinary Business Managers in Surakarta, Central Java, Indonesia). The 88 managers of the Galabo Shelter Culinary Business, registered with the city of Surakarta's Industry and Trade Office in 2021, make up the population of this study. The business is located in Surakarta, Central Java, Indonesia. The sample was chosen using a method called "purposive sampling" and the following criteria: 1) Managing the Galabo Shelter restaurant, which was licensed by Surakarta’s Department of Industry and Commerce in 2021. 2) has already started using information technology to manage his company. 3) have operated their company for at least three (3) years. Both qualitative (descriptive analysis) and quantitative methodologies were used in the data analysis for this study (regression and Sobel test). The study's findings indicate that although Information Technology capabilities have a large influence on innovation, they have no comparable impact on sustainable competitive advantage. The Sustainable Competitive Advantage is significantly impacted by innovation. Information Technology Capability influences sustainable competitive advantage through innovation. The benefit of this study is that it will be taken into account by the managers of the Galabo Shelter Culinary in Surakarta as they work to improve their ability to innovate and stay competitive. This study also aids the Surakarta City Industry and Trade Office in advising the managers of the Galabo Shelter's restaurant business so that they can have a sustainable competitive advantage.