Analysis of Sustainable Competitive Advantage Influenced by Organizational Culture and Leadership Behavior through Technological Innovation

Abstract

The author conducted research on the manufacturing industry of two-wheeler spare parts and metal stamping located in Bogor Regency, specifically at PT. NKP. The study identifies several factors related to the company's readiness to face the era of free trade in this competitive business world. The first factor is leadership behavior, which plays a crucial role in determining the strategic direction of the company and influencing organizational performance. Effective leaders are capable of inspiring and motivating employees, making accurate strategic decisions, and managing change effectively. Michael E. Porter emphasizes that strategic leadership behavior is key to creating and maintaining competitive advantage. Visionary, analytical, and innovative leaders can steer the organization toward achieving long-term goals. The purpose of this study is to examine the influence of organizational culture and leadership behavior on sustainable competitive advantage through technological innovation as an intervening variable within the two-wheeler spare parts and metal stamping manufacturing industry in Bogor Regency, specifically at PT. NKP. The research involved 84 middle and top-level leaders, with all respondents included at a 5% margin of error. Data collection techniques employed were questionnaires and direct observation. Data analysis was conducted using the Smart Partial Least Square (PLS) version 3.0 method. The data analysis used in this research examines the relationships between variables, including structural relationships (between latent variables) as well as reflective or formative relationships (between latent variables and their indicators).. The research findings prove that visionary and participative leadership behavior has been a key factor in strengthening the technological innovation process at PT. NKP. Similarly, a strong organizational culture plays an important role in creating a conducive work environment for innovation. Organizational values that support collaboration, creativity, and adaptability to change provide a solid foundation for the effective implementation of technological innovation.