Building Competitive Advantage For Businesses Owned By Women’s Cooperative Members: The Role Of Digital Capabilities, Market Orientation, And Strategic Agility

Rita Mutiarni; Anis Nusron; Gogor Handiwibowo

doi:10.55681/economina.v4i11.5181

Authors

Rita Mutiarni Institut Teknologi dan Bisnis (ITEBIS) PGRI Dewantara Jombang, Indonesia
Anis Nusron Institut Teknologi dan Bisnis (ITB) Yadika Pasuruan, Indonesia
Gogor Handiwibowo Institut Teknologi Sepuluh November (ITS) Surabaya, Indonesia

DOI:

https://doi.org/10.55681/economina.v4i11.5181

Keywords:

Competitive Advantage; Digital Capability; Market Orientation; Strategic Agility; Women’s Cooperatives

Abstract

Changes in the business environment and advances in digital technology require micro and small enterprises to strengthen their adaptability and competitiveness. In responding to these dynamics, digital capability, market orientation, and strategic agility are essential for business sustainability. This study aims to analyze the effects of digital capability and market orientation on the competitive advantage of women’s cooperative members’ businesses in Jombang Regency, with strategic agility as a mediating variable. This study employed a quantitative approach through a survey of 220 women’s cooperative members who actively owned and managed businesses. Data were collected using a five-point Likert-scale questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 3. Hypothesis testing was conducted using the bootstrapping procedure. The results indicate that digital capability has a positive and significant effect on competitive advantage (β = 0.313) and strategic agility (β = 0.549). Market orientation also has a positive and significant effect on competitive advantage (β = 0.204) and strategic agility (β = 0.342). Furthermore, strategic agility positively and significantly affects competitive advantage (β = 0.406). The mediation results demonstrate that strategic agility partially mediates the effects of digital capability (indirect β = 0.223) and market orientation (indirect β = 0.139) on competitive advantage. This study concludes that digital capability and market orientation, supported by strategic agility, play important roles in building competitive advantage. These findings highlight the need for business training and mentoring programs that integrate digital skills, market understanding, and the ability to respond to changes in the business environment.

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