Title:
Antecedents of Competitive Advantage and Their Impact of Sustainable Business Performance: The Moderating Role of Entrepreneurial Orientation and Business Model Innovation

Authors:
Guntur Sasongko, Willy Arafah, Wahyuningsih Santosa, Indonesia

Abstract:

Competitive advantage is a key factor in ensuring sustainable business performance amid an increasingly dynamic and uncertain business environment. This study aims to develop a conceptual model that links strategic thinking and dynamic capability to competitive advantage. The analysis examines the role of transformational leadership as an intermediary factor, while entrepreneurial orientation and business model innovation function as reinforcing factors in this relationship. A quantitative approach using Structural Equation Model-Partial Least Squares (SEM-PLS) is applied to process data from various companies in the medical device industry. The findings indicated that strategic thinking and dynamic capability influence transformational leadership while also playing a crucial role in building competitive advantage. Additionally, transformational leadership strengthens business competitiveness and contributes to sustainable business performance. External factors such as entrepreneurial orientation and business model innovation further enhance this relationship, enabling organizations with greater flexibility and innovation to gain a stronger advantage in the competitive landscape. This study offers a more comprehensive understanding of the interrelationships among organizational strategy, leadership, and competitiveness within a complex theoretical framework. From a practical perspective, the findings provide valuable guidance for business leaders in formulating strategies, optimizing resource management, and designing business models that are more adaptable to market dynamics. Furthermore, this study provides new insights into how organizations can sustain and grow in an ever-evolving business environment through more adaptive and innovative strategy management. Understanding the interaction of these factors enables companies to better anticipate industry challenges and maintain long-term sustainable performance.

DOI: https://doi.org/10.51505/IJEBMR.2025.9509