The Effect of Cost, Innovation, and Logistic Capability on Competitive Advantage and Its Implications on Pharmaceutical Industry Supply Chain Performance
Abstract
This study evaluates the effects of cost, innovation, and logistics capability on competitive advantage and supply chain performance. Using appropriate analysis methods, this study found that cost, innovation, and logistics capability significantly affect competitive advantage and supply chain performance. In particular, efficient costs, continuous innovation, and good logistics capability are proven to contribute positively to increasing competitive advantage. In addition, competitive advantage also plays an important role in improving overall supply chain performance. The results of this study indicate that companies that can manage costs effectively, innovate, and develop their logistics capabilities can achieve competitive advantages that have a positive impact on their supply chain performance. These findings provide valuable insights for managerial practices and supply chain management strategies to improve competitiveness and operational efficiency.
Downloads
References
Abdalla, S. S. A. & Nakagawa, K., 2022. Entrepreneurial Leadership, Supply Chain Innovation, and Adaptability: A Cross-national Investigation. Operations Research Forum, 3(23), pp. 1-21.
Abdul, F. A., Iortimbir, A. I., Oladipo, G. T. & Olota, O. O., 2019. Impact of Logistics Management on Organizational Performance. Journal of Sustainable Development in Africa, 21(1), pp. 36-49.
Adhiarna, N., 2024. MSMEs Digital Technology Intervention: Policy and Strategies in Indonesia, Jakarta: LPEM FEB UI.
Aksenta, A., 2024. Utilizing Internet of Things (IoT) Technology for Supply Chain Optimization in Digital Businesses. Management Studies and Business Journal, 1(4), pp. 609-616.
Aldhaheri, R. T. & Ahmad, S. Z., 2023. Factors affecting organisations’ supply chain agility and competitive capability. Business Process Management Journal, 29(2), pp. 505-527.
Alkababji, M. W., 2023. The Impact of Applying the Target Cost and Continuous Improvement in Achieving the Sustainable Competitive Advantage of Palestinian Industrial Companies. Journal of Business and Socio-economic Development, 3(4), pp. 372-387.
Arbuckle, J. L., 2019. IBM® SPSS® Amos™ 26 User’s Guide. New York: IBM.
Ariyanti, F. D., Nasution, J. & Mahardin, K. A., 2023. Analisis Hambatan Inisiatif Industri 4.0 pada Rantai Pasokan Industri di Indonesia. Jurnal Penelitian dan Aplikasi Sistem dan Teknik Industri (PASTI), XVII(2), pp. 259-270.
Bahri, A., 2023. Mengenal Manajemen Rantai Pasok (Supply Chain Management). Bangka: Universitas Bangka Belitung.
Bastuti, S., Alfatiyah, R., Shobur, M. & Candra, A., 2019. Manajemen Logistik. Tangerang: UNPAM Press.
Boediono, L., 2021. Ensuring a More Inclusive Future for Indonesia through Digital Technologies, Washington: World Bank Group Press.
BPS, 2024. Laju Pertumbuhan PDB Industri Manufaktur, 2023. [Online] Available at: https://www.bps.go.id/id/statistics-table/2/MTIxNiMy/growth-rate-of- manufacturing-industry-gdp.html [Diakses 18 Juni 2024].
Febransyah, A. & Goni, J. I. C., 2020. Measuring the supply chain competitiveness of e- commerce industry in Indonesia. Competitiveness Review: An International Business Journal, 32(2), pp. 250-275.
Field, A., 2024. Discovering Statistics Using IBM SPSS Statistics. 6th penyunt. London: Sage Publishing.
Ghanbari, J., Abbasi, E., Didehkhani, H. & Ashrafi, M., 2022. The Impact of Strategic Cost Management on the Relationship Between Supply Chain Practices, Top Management Support and Financial Performance Improvement. Journal of Applied Research on Industrial Engineering, 9(1), pp. 32-49.
Ha, N. T., Akbari, M. & Au, B., 2022. Last mile delivery in logistics and supply chain management: a bibliometric analysis and future directions. Benchmarking: An International Journal, 30(4), pp. 1137-1170.
Hair, J. F. et al., 2021. Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R. Berlin: Springer.
Harmasanto, D. H. & Setiawan, R., 2019. Pengeluaran R&D dan Kinerja Perusahaan Manufaktur di Bursa Efek Indonesia yang Dimoderasi oleh Usia Perusahaan. Jurnal Riset Akuntansi dan Bisnis Airlangga, 4(2), pp. 644-668.
Iftikhar, A., Ali, I., Arslan, A. & Tarba, S., 2022. Digital Innovation, Data Analytics, and Supply Chain Resiliency: A Bibliometric-based Systematic Literature Review. Annals of Operations Research, Volume 333, pp. 825-848.
IMDI, 2023. Overvew Indeks Masyarakat Digital Indonesia. [Online] Available at: https://imdi.sdmdigital.id/nasional_2023 [Diakses 10 June 2024].
INSA, 2023. Pembangunan Infrastruktur Masif, Tetapi Biaya Logistik Tetap Tinggi, Jakarta: DPP INSA.
Jafari, H., Eslami, M. H. & Paulraj, A., 2021. Postponement and Logistics Flexibility In Retailing: the Moderating Role of Logistics Integration and Demand Uncertainty. International Journal of Production Economics, Volume 243, pp. 1-16.
Jangir, M., Chahar, D. S., Lal, R. & Sharma, S., 2024. An Overview of Statistics: Comprehending Hypothesis Testing and Statistical Imperfections (Errors and Bias). World Journal of Pharmaceutical and Medical Research, 10(4), pp. 90-93.
Kemenkeu, 2023. Terapkan NLE, Tekan Biaya Logistik, Jakarta: Media Kemenkeu.
Khairi, I., Susanti, D. & Firman, S., 2021. Study on Structural Equation Modeling for Analyzing Data. International Journal of Ethno-Sciences and Education Research , 1(3), pp. 52-60.
Khanuja, A. & Jain, R. K., 2021. The mediating effect of supply chain flexibility on the relationship between supply chain integration and supply chain performance. Journal of Enterprise Information Management, 35(6), pp. 1548-1569.
Kimiti, P. G., Muathe, S. M. A. & Murigi, E. M., 2020. Cost Leadership Strategy, Competitive Advantage, and Performance: A Cross-sectional Study in the Context of Milk Processing Firms. International Journal of Management, Innovation & Entrepreneurial Research, 6(2), pp. 64-76.
Leo, G. D. & Sardanelli, F., 2020. Statistical Significance: P Value, 0.05 Threshold, and Applications to Radiomics. European Radiology Experimental , 4(18), pp. 1-8.
Li, N., Huang, J. & Feng, Y., 2020. Construction and Confirmatory Factor Analysisof the Core Cognitive Ability Index System of Ship C2 System Operators. PLOS One, 15(8), pp. 1-23.
Liao, S.-H., Hu, D. C. & Chen, S.-T., 2021. Supply Chain Integration, Capability and Performance – A Business-to-Business Network Cooperation. Journal of Business and Industrial Marketing, 37(5), pp. 1127-1137.
Liao, S.-H., Hu, D.-C. & Chen, S.-T., 2021. Supply chain integration, capability and performance – a business-to-business network cooperation. Journal of Business & Industrial Marketing, 37(5), pp. 1127-1137.
Liu, Y. & Song, G., 2023. Role of Logistics Integration Capability in Enhancing Performance in Omni-Channel Retailing: Supply Chain Integration as Mediator. MDPI Sustainability, 15(11), pp. 1-22.
Liu, Y. & Song, G., 2023. Role of Logistics Integration Capability in Enhancing Performance in Omni-Channel Retailing: Supply Chain Integration as Mediator. MDPI Sustainability, 15(11), pp. 1-22.
Lyu, T., Geng, Q. & Yu, D., 2022. Research on the Relationship between Network Insight, Supply Chain Integration and Enterprise Performance. MDPI Systems, 11(10), pp. 1-20.
Merkert, R. & Hoberg, K., 2022. The Future of Logistics and Supply Chain Management: Changing Skill Sets and Smart Career Choices. Switzerland: Springer Nature.
MITSDE, 2019. 7 Principles of Supply Chain Management. [Online] Available at: https://mitsde.com/7-principles-of-supply-chain-management/ [Diakses 21 06 2024].
Ning, L. & Yao, D., 2023. The Impact of Digital Transformation on Supply Chain Capabilities and Supply Chain Competitive Performance. MDPI Sustainability, 15(10107), pp. 1-22.
Nobanee, H., Alhajjar, M., Abushairah, G. & Harbi, S. A., 2021. Reputational Risk and Sustainability: A Bibliometric Analysis of Relevant Literature. MDPI Risks, Volume 9, pp. 1 - 21.
Nuraini, N., Sarkum, S., & Halim, A. (2021). Analysis of Company Capability, Supply Chain Management of Competitive Advantage, and Company Performance. Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE), 4(1), 87-104. https://doi.org/10.31538/iijse.v4i1.1463
Ozili, P. K., 2023. The Acceptable R-square in Empirical Modelling for Social Science Research. MPRA Paper, pp. 1-14.
Pietrzyńska, A. B. & Motowidlak, U., 2023. Supply Chain Adaptability as a Response to Disruptions. Scientific Journals of the Maritime University of Szczecin, 74(146), pp. 46- 54.
Porter, M. E., 2021. The Competitive Advantage: Creating and Sustaining Superior Performance. New York: Free Press.
Prasetyo, D. W., & Toha, M. (2023). Analysis of Islamic Business Ethics in Buying and Selling Transactions of Agricultural Products Using a Wholesale System and Its Impact on Farmers’ Income in Tanjung Kenongo Village, Pacet District, Mojokerto Regency. Danadyaksa: Post Modern Economy Journal, 1(1), 70 –. https://doi.org/10.69965/danadyaksa.v1i1.12
Pujihastuti, A., Hastuti, N. M. & Yuliani, N., 2021. Penerapan Sistem Informasi Manajemen Rumah Sakit dalam Mendukung Pengambilan Keputusan Manajemen. Jurnal Manajemen Informasi Kesehatan Indonesia, 9(2), pp. 191-200.
Rane, N. L., Achari, A. & Choudhary, S. P., 2023. Enhancing Customer Loyalty Through Quality of Service: Effective Strategies to Improve Customer Satisfaction, Experience, Relationship, and Engagement. International Research Journal of Modernization in Engineering Technology and Science, 5(5), pp. 427-452.
Rasib, N. F. N. A. R., Sundram, V. P. K. & Noranee, S., 2021. Competitive Advantage Fostering Supply Chain Innovation. International Journal of Academic Research in Accounting, Finance and Management Sciences, 11(1), pp. 439-450.
Reklitis, P., Sakas, D. P., Trivellas, P. & Tsoulfas, G. T., 2021. Performance Implications of Aligning Supply Chain Practices with Competitive Advantage: Empirical Evidence from the Agri-Food Sector. MDPI Sustainability, 13(16), pp. 1-21.
Ricardianto, P., Nasution, S., Naiborhu, M. A. & Triantoro, W., 2020. Peluang dan Tantangan Sumber Daya Manusia dalam Penyelenggaraan Pelabuhan Cerdas (Smart Port) Nasional di Masa Revolusi Industri 4.0. Warta Penelitian Perhubungan, pp. 59-68.
Richey, R. G., Roath, A. S., Adams, F. G. & Wieland, A., 2021. A Responsiveness View of Logistics and Supply Chain. Journal of Business Logistics, pp. 1-30.
Rounaghi, M. M., Jarrar, H. & Dana, L., 2021. Implementation of Strategic Cost Management in Manufacturing Companies: Overcoming Costs Stickiness and Increasing Corporate Sustainability. Future Business Journal, 7(1), pp. 1-8.
Sallam, K. M., Mohamed, A. W. & Mohamed, M., 2023. Internet of Things (IoT) in Supply Chain Management: Challenges, Opportunities, and Best Practices. Sustainable Machine Intelligence Journal, Volume 2, pp. 1-32.
Sanmartín, E. R., Abousamra, A. A., Neira, C. O. & Svensson, G., 2021. The impact of the relationship commitment and customer integration on supply chain performance. Journal of Business & Industrial Marketing, 38(4), pp. 943-957.
Santos, I. M. d., Mota, C. M. d. M. & Alencar, L. H., 2021. The Strategic Alignment Between Supply Chain Process Management Maturity Model and Competitive Strategy. Business Process Management Journal.
Setiawan, S. R. D., 2023. Perusahaan Dinilai Perlu Benahi Rantai Pasok Hulu hingga Hilir, Mengapa?, Jakarta: Kompas.
Shahadat, M. M. H., Chowdhury, A. H. M. Y., Nathan, R. J. & Fekete-Farkas, M., 2023. Digital Technologies for Firms’ Competitive Advantage and Improved Supply Chain Performance. Journal of Risk and Financial Management, Volume 16, pp. 1-17.
Sriwana, I. K., Hijrah, N., Suwandi, A. & Rasjidin, R., 2021. Pengukuran Kinerja Rantai Pasok Menggunakan Supply Chain Operations Reference (SCOR) di UD. Ananda. Jurnal Integrasi Sistem Industri, 8(2), pp. 13-24.
Sumarsono & Muflihah, N., 2021. Penentuan Strategi Rantai Pasok UMKM yang Kompetitif Berdasarkan Logistical-Crossfunctional Drivers: Studi Kasus Umkm di Kabupaten Jombang – Jawa Timur. Jurnal Teknik Industri, 16(1), pp. 42-55.
Suwarsa, T. & Hasibuan, A. R., 2021. Pengaruh Pajak Restoran dan Pajak Hotel terhadap Pendapatan Asli Daerah Kota Padangsidempuan. Jurnal Akutansi, 14(2), pp. 71-85.
Tesalonika, V. et al., 2023. Upaya Peningkatan Efisiensi Rantai Pasok Produk Farmasi Melalui Sistem Terpusat yang Disruptif, Surabaya: Universitas Airlangga.
Tukamuhabwa, B., Mutebi, H. & Kyomuhendo, R., 2023. Competitive advantage in SMEs: effect of supply chain management practices, logistics capabilities and logistics integration in a developing country. Journal of Business and Socioeconomic Development, III(4), pp. 353-371.
Umar, J. & Nisa, Y. F., 2020. Uji Validitas Konstruk dengan CFA dan Pelaporannya. Jurnal Pengukuran Psikologi dan Pendidikan Indonesia, 9(2), pp. 1-11.
Yuan, Y., Tan, H. & Liu, L., 2023. The effects of digital transformation on supply chain resilience: a moderated and mediated model. Journal of Enterprise Information, 37(2), pp. 488-510.
Copyright (c) 2024 Reginata Xaviera, Wahyuningsih Santosa, Triwulandari Satitidjati Dewayana

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.















