The Influence Of Management Capability On It Capability, Innovation, And Competitive Advantage In The Salt Industry

Abstract

This study aims to analyze the effect of Management Capability on IT Capability, Innovation, and Competitive Advantage in the Salt Industry. Salt is a basic need for the people of Indonesia, not only for household needs, salt is also a raw material for the alkaline sector industry (chlor-alcali plant/CAP). the main need for salt is not accompanied by the quality of the industry that produces quality salt. In an effort to increase competitive advantage in the salt industry, management's ability to adopt IT Capability and the ability to innovate are very important factors. This research is a type of explanatory research with data collection using survey research. Respondents in this study were all units of analysis, namely salt UKM managers, totaling 105 people. The data analysis method used is Partial Least Square (PLS) analysis. This research gives the result that the management capability variable has a significant and positive effect on competitive adventage, IT capability and sustainable innovation. In addition, this research also gives the result that IT capability has a positive and significant effect on innovation. There is a significant and positive influence between innovation and competitive advantage. Meanwhile, IT capability has no significant effect on competitive advantage.