Unpacking the Drivers of Competitive Advantage: Enhancing Value Creation and Firm Profitability through Transportation and Strategic Innovation

This work studies the relationship between Strategic Management Accounting and Competitive Advantage in Indian financial services through an analysis of Cyber Security and Digital Transformation as mediators. Researchers obtained responses from 270 financial sector employees throughout northern India through convenience sampling which spanned across three data collection waves. SmartPLS4 was performed for data analysis and to validate the proposed hypotheses. The analyzed data demonstrated a robust link between Strategic Management Accounting and Competitive Advantage as research showed Cyber Security and Digital Transformation function as intermediate variables in this connection. Research demonstrates the role of Cyber Security and Digital Transformation together to optimize Competitive Advantage through effective implementation of Strategic Management Accounting practices. This investigation provides meaningful contributions to academic literature by studying Cyber Security and Digital Transformation functions as missing mediators between Strategic Management Accounting and Competitive Advantage in the research landscape of India's financial service industry. This study brings together previously studied independent concepts into a unified framework while remaining unique compared to existing research. The research engages with the financial services sector in India to present fresh insights. The study implies that organizations need multileveled competitive plans that implement Strategic Management Accounting methods properly and adjust frameworks for digital transformations and competitive strategies. This will result in robust business continuity solutions and a sustained competitive market position as well as enhanced data integrity and reliability. • The research investigates the role of Cyber Security (CS) and Digital Transformation (DT) as a mediator in explaining the association between Strategic Management Accounting (SMA) and Competitive Advantage (CA). • The results underline the connections between SMA, CS, DT, and CA and the data corroborate the concept that there is a direct correlation between SMA and CA, which is mediated by factors such as CS and DT. • The findings indicate that businesses should consider the overall competitive advantage rather than solely focusing on financial metrics. • CA can be improved if well-formulated SMA practices are in place. • The study advocates for agile CS for data integrity and business continuity, focusing on DT to achieve sustainable business performance and a relative CA.

The purpose of this paper is to examine the ability of a firm to innovate and absorb its innovative developments by borrowing concepts and models from project portfolio management (PPM). Using past research and the existing literature, it evaluates the potential to apply PPM to the medium-term strategic planning efforts of small- and medium-sized firms. The implementation of strategic innovation requires organizations to develop both a dynamic culture and flexible internal systems that yield to major external changes in their industry as well as internal resource changes. Such changes could include supply or value chain adjustments, changes in consumer behavior, re-allocation of internal resources or the responses of competitors. This paper examines the planning and implementation of project portfolio management tools in small- and medium-sized enterprises (SMEs) (50–250 employees) with a mid-range (2–4 years) planning horizon that are required to innovate in a strategic context to remain competitive or to take advantage of new opportunities. It relates strategic foresight to the ability of the firm to adjust tactically, including in the utilization and development of internal tools, processes, systems and culture. This paper contributes to the literature by examining the potential for PPM methodologies and models to support decision making in a strategic context in SMEs, an area that is under-represented in the research on strategy. It also relates this foresight with strategic innovation and draws parallels between the strategic management planning process and the use of project portfolio management models. It argues that strategic innovation is closely tied with the ability not just to innovate but to absorb this innovation within the organizational processes and build organizational maturity. It also examines the potential use of project portfolio management models to aid strategic innovation. The use of PPM models in support of strategic innovation may contribute to the sustainability of SMEs as businesses and to the potential to identify new business models that enhance the sustainability of a firm’s competitive advantage, particularly in the medium-term.

This study explores into the key drivers, challenges, and internal determinants influencing the adoption of green financing within Sri Lankan banking institutions. The study expounds the motivations and strategic frameworks supporting the incorporation of sustainability into banking practices through conducting in-depth interviews with the representatives from Domestic Systematically Important Banks (D-SIBs) in Sri Lanka. The findings pinpoint several key drivers such as regulatory frameworks, varying consumer preferences, shareholder involvement, and the quest for innovation. Regulatory transformations, colliding with targeted incentives and policies, have substantially driven banks toward sustainable practices. Simultaneously, changes in consumer behaviour and high environmental awareness have infused the development and introduction of innovative green financing products. Additionally, investor demands for increased transparency and the integration of Environmental, Social, and Governance (ESG) criteria have significantly influenced banks' strategic directions. This should be acknowledged as pioneers in sustainable finance and the necessity for competitive differentiation has been a key internal driver. Further, the results are aligned with the Resource Based View Theory and the Resource Theory of Sustainable Finance, underlining the vital role that firm-specific resources, competencies, and institutional framework contribute towards accomplishing sustainable finance goals. The study highlights that to promote the adoption of green financing initiatives, favourable regulations, increased consumer awareness, internal collaboration, capacity development, coordination of strategies, involvement of stakeholders, product innovation, risk management, and partnerships are essential. Hence, this study offers an in-depth comprehension of the intricate factors guiding the incorporation of green finance into Sri Lankan banks, with significant implications for decision-makers, financial institutions, and other parties involved in fostering green finance. Keywords: Competitive Advantage, Consumer Preferences, ESG, Green Finance, Regulations, Shareholder Activism

This study explored the relationship between strategic innovation and competitive advantage through empirical studies across various industries. Strategic innovation, which involves the adoption of novel business models, processes, or technologies, is hypothesized to be a key driver of competitive advantage. The study measured strategic innovation through the dimensions of disruptive innovation, sustaining innovation and incremental innovation. The findings reveal that companies that effectively implement strategic innovations achieve significant improvements in market share, operational efficiency, and brand differentiation. However, gaps persist, including the need for integrated frameworks that encompass all types of innovation, clarity in defining strategic innovation, understanding the dynamics of culture and leadership, exploring dynamic capabilities and adaptation strategies, and examining the role of strategic agility. Based on these insights, the study provided actionable recommendations for practitioners like to develop integrated frameworks that systematically incorporate sustaining, disruptive, and incremental innovations to provide a comprehensive understanding of their collective impact on competitive advantage. Clear and consistent definitions of strategic innovation should be established to facilitate comparative analysis and theoretical development. Additionally, further exploration into the influence of organizational culture and leadership on innovation outcomes is essential, along with longitudinal studies to track how firms adapt their innovation strategies over time. This research contributed to a deeper understanding of how strategic innovation can be leveraged for competitive advantage and offers practical guidance for firms seeking to enhance their strategic innovation capabilities.

Action aggressiveness reflects how a firm reacts to temporary competitive advantages. By responding promptly to market demands, firms strengthen their market position and create advantages. Those that can act even faster secure an even stronger competitive position and greater market power. However, there is no guarantee that a competitive advantage gained today will last in the long run. The focus is on the firm’s readiness to take an action, meaning how willing the firm is to engage with competitors and respond quickly. Competitive dynamics is becoming more noticeable across various markets, even those that once seemed stable. From a theoretical perspective, a company’s performance is influenced not just by its own strategy, but also by its competitors’ actions and their interactions. The main goal of this study is to explore the link between a company’s strategic path and its ability to achieve sustainable growth in rapidly changing environments. Past research often looked at how competitive dynamics impact a company’s financial performance, but this paper aims to broaden that perspective. Specifically, this research aims to define and analyze the connection between a firm’s behavior in a turbulent market and its competitive advantage, using both financial metrics and performance indicators relative to its main rival. The findings suggest a positive correlation between a company’s agility, strategic innovation, and profitability. Essentially, traits like firm agility and strategic innovation are vital for companies to survive, succeed, and maintain their competitive edge in dynamic business environments.

In the era of globalization and digital transformation, digital marketing strategies have become a crucial factor in shaping consumer behavior and creating competitive advantage for companies. The development of digital technology has transformed the way companies interact with consumers and create value in an increasingly dynamic global marketplace. This study aims to analyze the relationship between digital marketing strategies, consumer behavior, and competitive advantage in the context of global business. The research method used is a descriptive qualitative approach through library research, reinforced by conceptual and comparative analysis of various academic sources and relevant industry publications. The study results indicate that effective digital marketing strategies, through the use of social media, e-commerce, data analytics, artificial intelligence and big data technologies, can increase consumer personalization, engagement, and trust. The research findings also reveal that a company's ability to adapt to increasingly data-driven changes in consumer behavior is key to building a sustainable competitive advantage. Therefore, optimizing an integrated digital marketing strategy plays a crucial role in strengthening a company's position in a competitive and evolving global marketplace.

This systematic literature review examines the critical role of behavioral accounting in shaping strategic decision-making within the context of organizational digital transformation and business innovation. Employing a PRISMA-based methodology, this study synthesizes scholarly evidence from peer-reviewed journals and academic databases published between 2020 and 2025, addressing how behavioral factors influence the effectiveness of strategic innovation execution in digitalized business environments. The research integrates perspectives from behavioral accounting, strategic innovation economics, technology management, and platform economics to construct a unified framework explaining competitive advantage creation through digital transformation. Key findings reveal that successful strategic innovation depends not solely on technological sophistication but critically on understanding cognitive biases, technology adoption readiness, and organizational change management capabilities. The analysis demonstrates that Economic Value Added (EVA) and Market Value Added (MVA) serve as essential metrics for validating innovation effectiveness beyond traditional accounting measures. Cognitive barriers including anchoring bias, confirmation bias, and cognitive overload systematically impede strategic execution, while dynamic capabilities and upskilling investments emerge as sources of sustainable competitive advantage. The study further establishes that platform economics in financial services, particularly peer-to-peer lending, requires careful regulatory orchestration through instruments such as Indonesia's Financial Services Authority (OJK) Regulatory Sandbox. Evidence indicates that organizations integrating behavioral accounting perspectives into digital transformation strategies achieve superior innovation outcomes, with artificial intelligence adopters demonstrating 3.1 times higher return on investment when supported by clear strategic frameworks. The research contributes theoretically by synthesizing disparate literature streams into a cohesive strategic innovation economics framework, while offering practical implications for organizations navigating digital-driven transformation. Recommendations emphasize structured risk assessment models, behavioral finance training to mitigate cognitive distortions, and ecosystem-level regulatory design to balance innovation encouragement with systemic stability.

When we look back on the history of the world, the term “New Normal” has been employed concerning World War I, the global financial crisis of 2007 -2008, the September 11 attacks in the United States, and the global recession of 2008 -2012. Still, this term has never powerfully shocked our hearts. The COVID-19 pandemic has been changing human life since 2020. People gradually move away from everyday life and progressively walk into the “New Normal” life. However, the life of “New Normal” is full of uncertainty. The uncertainty may come from the different variants of the COVID-19 virus, and it may come from the resetting of the global economy. In the “New Normal” life, more and more companies go bankrupt and are about to face bankruptcy. Even though some companies do not want to default, but it has been hard to survive nowadays. Until now, it is hard to know if the “New Normal” life is a brief time in this long history of the world or the “New Normal” life will be a permanent state. Anyway, the “New Normal” factors of “New Normal” life have provided opportunities to force the world to eliminate outdated technologies, eliminate the backward enterprises, reorganize the business framework of companies, optimize the industrial structure, strengthen human resources, re-set the world economy, reorganize the business relationship of the world. History always moves forward according to its natural developmental trend, and no force can resist the law of the development of things. Still, also no power can resist people to pursue a better life. Individuals, groups, regions, and countries are connected based on the relationship between the individual and country is the relationship between the individual and the larger society. In addition, the relationship between the individual and the world is the relationship between the individual and the human organization. Therefore, individuals, groups, regions, and countries must look forward and keep a positive mindset to adopting the “New Normal” factorsin the “New Normal” life. As we can see, many companies are adopting “New Normal” factors, and some are expanding their business network and further towards corporate sustainability despite this COVID-19 pandemic making the challenging situation in this business world. The main research question of this study is “What are the “New Normal” factors that have a significant effect on corporate sustainability?” In this study, eight independent variables including Working from home (W.H), Workforce transformation (R.W), Digital transformation (D.T), Technological transformation (T.N), Psychological effect (P.C), Uncertainty (U.C), Consumer behavioral change (C.N), Government policy (G.V), and one dependent variable Corporate adjustment (C.S) is the studied. This study aims to understand the structural relationship among these potential variables that could influence corporate sustainability in the “New Normal” life. The dataset utilized to test the hypothesis postulated in this study is the Structural Equation Model (SEM). The results from this study suggests that Technological transformation, Uncertainty, Consumer behavioral change, Digital transformation, and Government policy significantly affect corporate sustainability in the “New Normal” life. Considering different politics, economy, and cultural backgrounds in countries and industries, we also found that some irreconcilable factors affect technological transformation, uncertainty, consumer behavioral change, digital transformation, and government policy. Finally, this study identified technological transformation, uncertainty, consumer behavioral change, digital transformation, and government policy as significant factors that affect corporate sustainability. Therefore, this study provides some valuable suggestions for all companies to better adapt to the business market in the “New Normal” time. In addition, this study also provides some evidence and ideas for researchers to explore corporate sustainability in the “New Normal” time and post-COVID-19.

This research aims to investigate the relationship between digital transformation, dynamic digital entrepreneur capabilities, competitive advantage, and business performance in small and medium enterprises (IKM). The first hypothesis (H1) proposes that digital transformation has a positive effect on competitive advantage, referring to Porter's (2001) view on the role of the internet in creating competitive advantage through partnerships and business digitalization. The second hypothesis (H2) states that digital transformation influences dynamic digipreneur capabilities through increasing knowledge sharing and digital capabilities. The third (H3) and fourth (H4) hypotheses claim that entrepreneurial-oriented dynamic digital entrepreneur capabilities have a positive impact on the competitive advantage and business performance of SMEs. The fifth hypothesis (H5) confirms that competitive advantage contributes to improving SME business performance through increasing market share, profits, efficiency, reputation and marketing effectiveness. Next, the sixth (H6) and seventh (H7) hypotheses try to explore the role of mediation, with H6 proposing that dynamic digipreneur capabilities can mediate the relationship between digital transformation and competitive advantage, and H7 claiming that competitive advantage can mediate the relationship between digital transformation and SME business performance . Finally, the eighth (H8) and ninth (H9) hypotheses suggest a dual mediating role, with H8 proposing that competitive advantage can act as a mediator between dynamic digipreneur capabilities and SMI business performance, while H9 proposes that digital transformation can influence SMI business performance through digipreneur capabilities dynamic and competitive advantage as a mediator.

This review paper critically examines the role of strategic innovation in business models, with a focus on how emerging technologies can be leveraged to gain a competitive advantage. By synthesizing existing literature, the paper explores the transformative potential of technologies such as artificial intelligence, blockchain, and the Internet of Things (IoT) on traditional and contemporary business models. The review identifies key patterns and trends in how businesses across various industries are integrating these technologies to enhance their value propositions, streamline operations, and create new revenue streams. The findings suggest that companies that successfully incorporate emerging technologies into their business models are better positioned to outpace competitors and adapt to the rapidly changing market landscape. The paper also discusses the challenges and barriers to technology adoption, such as high implementation costs, skill gaps, and organizational inertia, offering insights into strategies that can mitigate these obstacles. The paper underscores the importance of strategic innovation as a critical driver of sustained competitive advantage in the digital era. It highlights that leveraging emerging technologies is not merely an option but a strategic necessity for businesses aiming to thrive amidst ongoing technological disruption. By embracing these innovations, companies can significantly transform their business models, unlock new opportunities, and secure long-term success. Keywords: Business Model Innovation, Emerging Technologies, Sustainable Practices, Strategic Innovation, Partnerships, Open Innovation, Circular Economy, Organizational Agility, Continuous Improvement, Competitive Advantage, Digital Transformation, Market Adaptation, Technological Integration, Collaborative Innovation, Resilient Business Models.

Purpose: The purpose of this paper is to examine the mediating effect of human capital on the relation between the strategic innovation and competitive advantage of SMEs in Yemen.Methodology/Approach: The PLS-SEM analysis is performed to test the hypotheses by using data collected from 238 SMEs in Yemen. The results support the hypotheses.Findings: The results of the PLS-SEM analysis are as follows: strategic innovation had a significant effects on SMEs’ competitive advantage; also human capital had a significant effects on SMEs’ competitive advantage; human capital mediated the effect of strategic innovation on competitive advantage; and strategic innovation had a positive and significant effect on human capital.Research Limitation/Implication: The population of the study was limited to manufacturing SMEs, so the results cannot be generalized to other types of industry such as services, whose structure and vision differ from those of manufacturing companies.Originality/Value of paper: The paper is one of the first to highlight human capital as a mediator between strategic innovation and competitive advantage of manufacturing SMEs in Yemen and the Middle East, describing a single study applied in the context of a developing country.

Competitiveness is imperative for business leadership, as it fosters resilience and the capacity to outperform in a rapidly evolving market. This study explores the evolution of competitiveness factors and identifies those most critical in the current business environment. Competitiveness, traditionally associated with market performance and cost efficiency, has undergone a significant conceptual transformation, increasingly converging with sustainability and digitalization. Using a bibliometric approach, the research analyzed 741 publications indexed in the SCOPUS database, employing tools such as VOSviewer 1.6.20, Bibliometrix, and R 4.4.3 software for keyword co-occurrence mapping and thematic evolution analysis of competitiveness factors. A graphical representation has been employed to convey the results. The findings reveal that innovation remains the most persistent and dominant factor across all periods, underscoring its foundational role in competitive advantage. However, recent years have witnessed a marked rise in sustainability and digital transformation as key drivers of competitiveness. Sustainability, once peripheral, now represents a strategic imperative, reflecting global priorities related to climate change, social responsibility, and regulatory compliance. Similarly, digital transformation has emerged as a motor theme since 2017, highlighting the impact of advanced technologies, such as AI, big data, and automation, on operational efficiency and strategic positioning. Cluster analysis further demonstrates interconnections among these factors, with sustainability and digitalization linked to innovations, information technology, knowledge, human capital, strategy, and investments. The study concludes that competitiveness is no longer defined solely by financial metrics but by the ability to integrate technological, environmental, and social dimensions into business models. These insights provide a comprehensive framework for managers and policymakers to align competitive strategies with emerging global trends, ensuring long-term viability and resilience in dynamic markets.

With the rapid development of digital technologies such as big data and cloud computing, more and more enterprises are participating in the wave of digital transformation. Although many scholars have explored the impact of digital transformation on corporate performance, the improvement of performance does not mean that enterprises can gain a dominant position in market competition, and the relationship between digitization and corporate performance is complicated, and the relationship between the two is still controversial. Competitive advantage is the antecedent of performance. Focusing on competitive advantage research is not only conducive to further understanding the impact of digital transformation on enterprises, but also helpful to reveal the complex relationship between digital transformation and performance. On the basis of expounding the connotation of enterprise digital transformation and competitive advantage, this paper discusses the influence of enterprise digital transformation on the source of competitive advantage from two aspects: exogenous and endogenous, combined with industrial organization theory and resource-based theory. From the perspective of optimizing internal conditions, responding to external environment, adjusting competition and cooperation relationship, demand response and product innovation, this paper discusses the ways in which enterprises can gain competitive advantage through digital transformation.

The Digital Transformation phenomenon always tends to be complicated, ambiguous, challenging, and non-routine managerial tasks for organizations. The success rate of such digital transformation is very low due to rapid changes in technologies. Digital transformation through these technologies demands a fundamental change in organization processes, technology and behavior of the people. This broad change results in different socio-technical issues and challenges. The primary objective of the study is to discover issues, challenges and impact/benefits during digital transformation, investigated by various researchers. For this purpose, a systematic literature review (SLR) as prescribed by Levy and Ellis (2005) helped in identifying the challenges of digital transformation. The articles published from 2008 to 2018 were selected and analyzed. The findings of this research reflect the importance of developing an effective digital transformation strategy in organizations. The proactive strategy regarding people, process, technology, and most importantly their alignment in the organization is found critical in executing such transformation initiative in the organization. The planned efforts regarding knowledge management also played an important role in executing and sustaining such transformation initiatives in the organizations. Moreover, value creation, operational efficiency, competitive advantage, customer relationship, and new business model emerged as a vital motivational factor and outcome for digital transformation. Keywords: Digital transformation, digital transformation issues and challenges, systematic literature review, digital transformation benefits/impact.

Digital transformation is important not only in the manufacturing sector but can also help service-based organizations to achieve competitive advantage. Therefore, this study has examined the impact of digital transformation on competitive advantage and the mediating role of entrepreneurial orientation. Innovation capability is considered a moderator between digital transformation and competitive advantage. The data for the research were gathered from service companies in Jordan, and AMOS was utilized for the analysis. The results revealed that digital transformation not only influences competitive advantage but also affects entrepreneurial orientation. Entrepreneurial orientation significantly mediates the relationship between digital transformation and competitive advantage. In addition, innovation capabilities moderate the relationship between digital transformation, competitive advantage, and entrepreneurial orientation. Innovation, production, and operational managers as well as owners of service companies can use the results of this research as a guideline for policy-making in order to develop a competitive advantage.