Available via license: CC BY 4.0
Content may be subject to copyright.
IJTC
Ilomata International Journal of Tax & Accounting
P-ISSN: 2714-9838; E-ISSN: 2714-9846
Vol. 1 No. 4 October 2020 pp.225-242 https://www.ilomata.org/index.php/ijtc
225 | Ilomata International Journal of Tax & Accounting Vol. 1 No. 4 October 2020
The Effect of Organizational Performance, Competitive Advantage on the
Financial Sector of Chemical Manufacturing Industry in Banten Province
Uli Wildan Nuryanto1, Masyhudzulhak Djamil MZ2, Achmad Hidayat Sutawidjaya3, Ahmad Badawi Saluy4
1234Mercu Buana University
Correspondent: uli.wildan11@gmail.com
Submitted
: September 20, 2020
Revised
:
October 10, 2020
Published
:
October 31, 2020
ABSTRACT
In current dynamic business environment, the competition is getting stiffer and performance
organizational becomes issue, the caracteristics that occurred in the industrial revolution 4.0. This
condition requires organizations to increase the performance to be sustain. Competence and
knowledge management as internal resources that reffer to RBV are strengths hat are very
important as predictors in improving performance. For this reason, the study has explored the
indicators of each of the predictors and also test the relationships between latent variable that
have been hypothesized. This research focus to the industrial chemical manufactur at Banten
Province Indonesia which is become the province with the third largest number of chemical
firms in Indonesia. Regarding to the central bureau statistics of Indonesia, the values of
productivity and human resources capability from downstream chemical manufactur sector
below the target. This research using SEM-PLS method to measure 97 respondents from the
level supervisor and manajerial. The final results provide a positive and significant relationship
between competence and knowledge management through competitive advantage and
organizatioan performance. Competitive advantage also increasse the relationship between
competence and knowledge management through the organizational performance. This result
has implication for managerial levels to increase human resources performance so it can improve
the firm competitive advantage.
Keywords: Organizational Performance, Competitive Advantage, Financial Sector
Manufacturing Industry
INTRODUCTION
An increasingly competitive market and consumer awareness of the quality of products
purchased at competitive costs, as well as product trends that change according to customer
demands have changed the industrial business to be more dynamic (Ko, 2015). This competition
started in 1990 when the market was intensified to get the right products and services to their
place in a fast and low cost manner (Li et al., 2006). This raises impacts and problems, especially
for companies that are accustomed to formulating their business strategies by relying on the
ability to predict trends in the next five to ten years to change their habits by making changes and
rapid innovation (Munir, 2011). To be able to maintain their existence, many companies have
made various ways to make changes according to the demands of customers, such as expanding
market share (Hertati., 2015), making innovations related to products and services provided to
customers (Hertati, 2015), improving production system, make improvements to organizational
systems and make cost savings (Hertati, 2016).
Organizations that are not able to keep up with environmental changes will find it very
difficult to be able to compete in this competition so that inevitably the organization must be
The Effect of Organizational Performance, Competitive Advantage on the Financial Sector of Chemical
Manufacturing Industry in Banten Province
Nuryanto, Djamil MZ, Sutawidjaya, & Saluy
226 | Ilomata International Journal of Tax & Accounting Vol. 1 No. 4 October 2020
able to create a competitive advantage so that its business can survive (Kusuma and Devie,
2013). Hertati research results, (2016) state that competitive advantage is an advantage over
competitors that can be obtained by offering greater consumer value, at lower prices or
providing greater benefits to customers and providing services that are able to provide more
value to customers. customers (Porter, 1985). Competitive advantage is also defined as the ability
of an organization to maintain a defensive position against its competitors (Li et al, 2006) with
indicators of each being price, quality, delivery, dependability, product innovation, and time to
market. This is in line with the formulation of competitive advantage proposed by Porter (1985)
for companies, namely low cost or product differentiation. In the last 4 years, there has been a
very significant decline in growth in the chemical manufacturing sector in Indonesia where the
economic growth value of this sector is still below the national economic growth.
This decline occurred in the chemical industry and chemical goods sub-sector, which is the
downstream chemical manufacturing industry. The value of productivity and human resource
capability in the downstream sector is still below the average value of the non-oil and gas sector
where the average value of the productivity and capability of the human resources in the non-oil
and gas sector in the last 5 years has been at 398.5 million / person, while the average value of
productivity and human resource capabilities The downstream chemical manufacturing industry
sector amounted to 336.8 million / person in 2017. This is different from the Upstream chemical
manufacturing industry sub-sector which has a productivity value and human resource capacity
of 1,211.9 million / person in 2017.
Hertati research (2019) reveals that an increase in existing competitive advantage will be
obtained if it is supported by the potential for superior and high-quality human resources to
support companies in achieving predetermined quality goals. But unfortunately in fulfilling the
needs of human resources itself, there are quite a number of obstacles for the industry today.
Based on the results of the Focus Group Discussion (FGD) between key persons of
manufacturing industry entrepreneurs, there were problems related to skill gaps, especially in
middle-level human resources as well as shortages of supply and skill mismatch at the level of
skilled human resources. Hertati, et, all (2020) stated that this is what makes the position of the
domestic industry difficult to innovate and develop so that based on the results of the 2017
Global Innovation Index report, the domestic position ranks 87 out of 137 countries in terms of
innovation. This illustrates the vulnerability of the industry's ability to be able to develop
technology in order to produce high competitiveness. For this reason, a competency-based HR
improvement is needed to be able to increase competitive advantage so that it can support an
increase in company performance.
Hertati research (2019) states that in addition to free competition, a potential threat but can also be
an opportunity in the chemical manufacturing sector is the development of science and technology that
has shifted the third industrial revolution into an industrial revolution 4.0 which has a very fast disruptive
technology pattern. and threatens incumbent companies. On the other hand, technological developments
can actually be used as an opportunity for the industrial manufacturing sector by using automation
technology to replace manual systems. Research by Hertati (2016) states that the faster flow of
information due to technological advances will help companies to get the flow of information quickly and
at low cost. But back to the extent to which the level of human resources in mastering existing
competencies and knowledge management to adapt so that they can master renewable technology and
even be able to innovate for the company. For this reason, this study seeks to explore existing
information related to the influence of competence and how knowledge management plays a role in
increasing the competitive advantage of companies in order to improve organizational performance.
The Effect of Organizational Performance, Competitive Advantage on the Financial Sector of Chemical
Manufacturing Industry in Banten Province
Nuryanto, Djamil MZ, Sutawidjaya, & Saluy
227 | Ilomata International Journal of Tax & Accounting Vol. 1 No. 4 October 2020
The manufacturing sector is still the largest contributor to the national Gross Domestic Product
(GDP) with an achievement of 20.16% in 2017. While the next largest contributor to GDP is the
agriculture, forestry and fisheries sector at 13.14%, the trade sector at 13.01%, the construction sector was
10.38% and the mining sector 7.57%. The industrial classification used in the processing industry survey
is a classification based on the 4th revision of the Standard Industrial Classification of All Economic
Activities (ISIC) which has been adapted to conditions in Indonesia under the name Indonesian Standard
Industrial Classification (KBLI) in 2009. Furthermore, the main groups KBLI is divided into 24 industrial
subsectors where the chemical industry is included in the 11th classification called the chemical industry
and goods made of chemicals. In the last 5 years, the chemical manufacturing industry sector has been
able to generate an average export per year of US $ 10.83 billion and has been able to absorb 284,887
productive workforce with 1,376 companies spread across 22 provinces in Indonesia. Of the 22
provinces, there are 3 provinces that have the highest number of chemical companies, including West
Java with 388 companies, East Java with 333 companies and Banten province with 292 companies.
Emillia (2015) and Hertati, et, all (2020) state that the manufacturing sector, including the chemical
industry, is the foundation for the development of the national economy and is an important sector for
sustainable and productive economic growth. The development of the chemical industry in Indonesia is
also inseparable from the competitiveness of the industry itself, based on data from The International
Institute for Management Development (IMD), the competitiveness of the Indonesian manufacturing
industry in the last 11 years is not very good, namely in the 40th rank out of 193 countries registered with
the UN. This is an attraction for researchers to conduct more in-depth research related to competitive
advantage and organizational performance in the chemical manufacturing industry sector.
The definition of performance is used in various disciplines and depends on the field of the
organization itself (Jenatabadi, 2015: Hertati, et, all, 2019). Performance can be defined as an achievement
of results that can be seen from the extent to which the organization can achieve goals based on
predetermined goals. Performance is the result of collaborative activities among members or
organizational components in order to achieve organizational goals. Within the organizational framework,
there is a relationship between individual performance and organizational performance. Organizations in
achieving predetermined goals must go through activities driven by a person or group of people who
actively play a role as actors, in other words the achievement of organizational goals is only possible
because of the efforts made by people in the organization. Friedlander and Pickle (1968) and Safkaur,
(2020) consider performance as a variable that can measure the success of the company and also measure
the extent to which the company's ability to achieve its targets measured through efficiency, effectiveness
and others depending on the organizational context. Hertati, et, all (2020) stated that effectiveness refers
to the extent to which the production function can meet the demands and requirements of stakeholders
such as customers, top management and shareholders. While efficiency is how the organization's
resources are economically utilized through the achievement of functions.
This study uses the dimensions of competitive advantage from the perspective of RBV
into four dimensions, namely valuable resources, scarce resources, unmatched resources and
irreplaceable resources. With the number of indicators as many as seven indicators that refer to
the conditions of the research place and also the results of research such as Li and Liu (2018),
Ding et al (2018), Gautam and Ghimiee (2016), Stefanikova and Masarova (2014) and Awaad
(2014). The indicators are commitment and ability to provide satisfaction to customers (CA1),
ability to innovate (CA2), ability to withstand risks (CA3), use of technology (CA4), commitment
to achieving goals at any cost (CA5).
Related to RBV, competence is a capital that comes from internal organizations and has
value for the organization to be able to produce competitive advantage. In a company, core
competence is an absolute force that underlies the company in operating, while in relation to
competitive advantage, researchers also use differentiating competencies as a dimension of
The Effect of Organizational Performance, Competitive Advantage on the Financial Sector of Chemical
Manufacturing Industry in Banten Province
Nuryanto, Djamil MZ, Sutawidjaya, & Saluy
228 | Ilomata International Journal of Tax & Accounting Vol. 1 No. 4 October 2020
competence. As for professional competence, researchers also use it as a dimension and
predictor of competitive advantage and organizational performance, so that it is expected to
represent the diversity of meanings related to competence. Otoo and Mishra (2018) and Hertati
& Syafarudin (2018) define competence as a group of knowledge, skills, personal qualities and
experiences, while Hellrigel and Slocum (2011) define competence into the dimensions of
employee ethical competence, self-competence, diversity competence, cross-cultural competence,
communication competence, team competence and changing competencies as the seven main
competencies that affect individual competence, team and organizational effectiveness (Hertati,
et, all, 2020). Companies make various kinds of efforts to have a competitive advantage as a
powerful weapon in improving organizational performance, one of which is by calculating and
using core competencies as an internal strength that can produce added value, strong
differentiation (Hamel and Prahalad, 1994). There have been many studies from academics
which have concluded that core competencies are a very vital force for organizations as a means
of gaining competitive advantage (Hafeez and Abdelmeguid, 2003).
Srivastava (2005) states that core competencies are the basis of all internal resources which
can be used as competitive advantages. Banerjee (2003), core competence as anything that is
information and knowledge about the success or failure of using knowledge sources. Chen and
Wu (2007), core competence as the ability to operate efficiently in a business environment in
order to respond to existing challenges. Leonard and Barton (2000), core competencies as
competencies that differentiate a company from its environment. Meanwhile, according to
Sanchez and Heene (1997) what is meant by core competence is the result of a collective learning
process which is manifested in business activities and processes. Professional competence
according to McCelland (1973) is defined as the ability needed in the workplace which is related
to a person's personal capacity related to one's performance in doing their job. Professional
competence refers to the accuracy, skills and exemplary behavior, so that employees must
strengthen the professional aspects of competence in order to be competent in carrying out their
duties (Mansfield, 1978).
Lysaght and Altschuld (2001) stated that the core of professional competence is
knowledge, skills, standards, competences and identification. Distinguishing competencies are
abilities, activities and capacities that are unique compared to competitors (Stoner, 1987).
Producing higher quality products, innovating, having knowledge and skills in the workplace, or
the ability to respond quickly to customer requests compared to customers. Tsou et al (2014);
Garcia and Velasco (2008), competencies that differentiate the ability to be able to innovate that
produce new methods or materials using technology and leave previous methods. This study
uses core competencies as a dimension with three main indicators that refer to the results of
research from Hertati, Lestari (2020), Otoo & Mishra (2018) and Agha et al (2012), the three
indicators are competence in communication (COM1), competence in ethics (COM2) and
competence to work together (COM3).
Meanwhile, professional competence uses two indicators, namely cognition or
understanding of materials (COM4), and the ability to operate existing facilities (COM5) which
refers to Ko's research (2015). Whereas for differentiating competence, researchers use one
indicator, namely competence to innovate (COM6) which refers to the research of Tsou et al
(2014). Knowledge management is the formalization of and access to experience, knowledge,
and expertise that creates new capabilities that enable superior performance, drive innovation
and increase customer value (Khan, 2012). Knowledge management is a process that helps
The Effect of Organizational Performance, Competitive Advantage on the Financial Sector of Chemical
Manufacturing Industry in Banten Province
Nuryanto, Djamil MZ, Sutawidjaya, & Saluy
229 | Ilomata International Journal of Tax & Accounting Vol. 1 No. 4 October 2020
organizations to find, select, organize, disseminate and transfer important information and
expertise needed for organizational activities (Zaied et al, 2012). Companies that are efficient in
acquiring knowledge will be able to create and maintain a competitive advantage in a knowledge-
based economy. Meanwhile, other companies that are unable to acquire and create knowledge
will have difficulty in maintaining their competitive position (Deed and Hill, 1996 in Khan 2012).
Knowledge is an important source of competitive advantage available to an organization in the
twenty-first century (McFadyen and Canella, 2004).
The twenty-first century is an era of knowledge economy, where most organizations have
knowledge that enables them to improve their organizational performance (Zaied et al, 2012). In
today's world of aggressive competition, knowledge management is the main vehicle for
organizations to achieve their goals and to compete well. Knowledge management is recognized
as an important weapon to maintain competitive advantage and improve performance (Zaied et
al, 2012). Through knowledge management, organizations identify their knowledge and use it to
improve performance and produce various innovations (Munir, 2011). Organizations must
recognize the importance of effective knowledge management, because the costs of ignoring it
are enormous (Ling et al, 2008). So that the evaluation of knowledge management becomes
important because it provides a reference to direct the organization in increasing competitive
advantage so that it can create good organizational performance.
The dimensions of knowledge management in this study are identified into five stages of
knowledge selection that have been adjusted to the place of research and refer to the research of
Mahdi et al (2018), Turulja and Bajgoric (2018), Cahyaningsih et al (2017), Mahdavi and Pirzad
(2017). Al-Refaie and Al-Tahar (2016), Hazen (2015) into the process of knowledge
identification, knowledge creation, knowledge storage, knowledge sharing and knowledge use.
With the number of research indicators as many as six indicators, namely data collection on
potential knowledge (KM1), converting and formalizing knowledge into reference standards
(KM2), protection of knowledge (KM3), transfer of knowledge (KM4), sharing of knowledge
(KM5) and use of knowledge into activities operational routine (KM6). This study integrates the
resources based view (RBV) theory and knowledge based theory (KBV), so that the researcher
calls the concept of renewal in this study as the Gain Competitive Advantage for a reliable
industry, this study also develops several hypotheses to extend the existing model into a new
model. From the description above it can be formulated a research hypothesis that competitive
advantage, organizational performance affects the manufacturing industry sector
METHODS
This research is designed to answer problems that have been formulated through
hypotheses. Kerlinger's (2000) design is an investigation structure structured in such a way as to
help researchers get definite answers. using a deductive approach consisting of exploratory
research to find some relatively new relationships and detailed explanations. By applying a
deductive approach, the researcher tries to see the data empirically and systematically which is
then compared with existing theories. Causal studies attempt to explain the relationship between
the influence of competence, knowledge management, and competitive advantage on
organizational performance in the chemical manufacturing sector. The conceptual framework
proposed by the researcher is as follows:
The Effect of Organizational Performance, Competitive Advantage on the Financial Sector of Chemical
Manufacturing Industry in Banten Province
Nuryanto, Djamil MZ, Sutawidjaya, & Saluy
230 | Ilomata International Journal of Tax & Accounting Vol. 1 No. 4 October 2020
Figure 1. Research Framework, 2020
This research was conducted on chemical companies in the province of Banten which are
scattered in Serang Regency, Cilegon City and Tangerang Regency involving 97 respondents. The
sampling technique uses purposive sampling technique and the unit of analysis measures the
managerial level employees as policy makers in their respective companies with a minimum
working period of one year. The variables in this study are grouped into three groups, the first
exogenous variables are competence and knowledge management. , the second is the intervening
variable, namely competitive advantage and the last is the endogenous variable, namely
organizational performance. This study uses a questionnaire with a Likert scale with a value of 1-
5 where scale 1 states strongly disagree, scale 2 disagrees, scale 3 is neutral, scale 4 agrees and
scale 5 strongly agrees.
RESULTS AND DISCUSSION
This study aims to obtain the best model in explaining the influence of competence,
knowledge management and competitive advantage on organizational performance in the
chemical manufacturing sector. While the indicators used are those that refer to previous
research and are related to the place of this research. The data analysis technique uses SEM PLS,
according to Ferdinand (2002) SEM is very suitable for confirming various kinds of constructs
that exist for latent variables. Test model compatibility or accuracy based on observed empirical
data. Test the causal relationship between the factors observed in the model. Based on the results
of an in-depth literature review of each relationship between variables, the following
relationships and influences were obtained.
The results of previous research show that competence and quality have a significant effect
on competitive advantage in small and medium companies (Ismail et al, 2014). Meanwhile, the
research results of Adiputra and Mandala (2017) show that competence and capability have a
positive effect on company performance, but competence does not have a significant effect,
while capability has a significant effect. Agha et al (2012), Jamhour and Agha (2010) and
Hastjarjo, et al (2016) show that competence has a significant effect on competitive ability and
competitive advantage and can improve organizational performance. Based on the research that
has been done above in relation to the relationship between competence and competitive
advantage, the researchers took the following provisional conclusions:
Competence
Knowledge
Management
Competitive
Advantage
Organizational
Performance
The Effect of Organizational Performance, Competitive Advantage on the Financial Sector of Chemical
Manufacturing Industry in Banten Province
Nuryanto, Djamil MZ, Sutawidjaya, & Saluy
231 | Ilomata International Journal of Tax & Accounting Vol. 1 No. 4 October 2020
HI: Competence has a significant effect on competitive advantage in the industrial sector
chemical manufacturing
The results of research related to the relationship between knowledge management and
competitive advantage found that there is a significant relationship between knowledge
management and competitive advantage (Mahdi et al, 2018). Meanwhile, Kusuma and Devie's
(2013) research results show that knowledge management has a positive and significant impact
on competitive advantage and organizational performance. Nazarpour and Shirin (2017) The
human resource process has a positive and significant influence on knowledge management and
competitive advantage, as well as knowledge management which has a significant effect on
competitive advantage where the measurement of competitive advantage is through the VRIO
approach. Almasi and Pirzad (2017) conclude that intellectual capital has a significant effect on
knowledge management and competitive advantage, but knowledge management has no
significant effect on competitive advantage, while Lee et al (2016) conclude that knowledge
management has a significant effect on technological innovation and competitive advantage. and
technological innovation has a significant effect on competitive advantage. Based on the research
that has been done above in relation to the relationship between knowledge management and
competitive advantage, the researchers took the following provisional conclusions:
H2: Knowledge Management has a significant effect on competitive advantage in
chemical manufacturing industry sector.
Previous research that discussed the relationship between competitive advantage and
organizational performance such as Cantele and Zardini (2018) concluded that there was a
significant influence on the sustainability dimension of the long-term company on competitive
advantage and a significant effect on competitive advantage and company performance. Lorenzo
et al (2017) concluded that competitive advantage has a significant effect on the performance of
beverage companies in Spain, this is in line with the research of Othman et al (2015), Kusuman
and Devie (2013) and Gyampah and Acquaah (2008) where their research also emphasizes that
the source the company's existing power originating from the internal company will determine
the company's competitive advantage. Based on the research that has been done above in
relation to the relationship between knowledge management and competitive advantage, the
researchers took the following provisional conclusions:
H3: Competitive advantage has a significant effect on organizational performance in the sector
chemical manufacturing industry
Previous studies that examined the relationship between competence and organizational
performance include Otoo and Mishra (2018) which concluded that good human resources will
increase employee competence and the impact will have a significant effect on organizational
performance, while Nimsith et al (2016), Agha et al. (2012), Jamhour and Agha (2010) and
Hastjarjo et al (2016) concluded that the dynamic ability of organizations to existing
environmental risks and competence has a significant effect on organizational performance. So
that it can be concluded that competence is a very valuable internal resource for the company to
be able to improve its organizational performance. Based on the research that has been done
above in relation to the relationship between competence and organizational performance, the
researchers took the following temporary conclusions:
H4: Competence has a significant effect on organizational performance in the sector
chemical manufacturing industry
The Effect of Organizational Performance, Competitive Advantage on the Financial Sector of Chemical
Manufacturing Industry in Banten Province
Nuryanto, Djamil MZ, Sutawidjaya, & Saluy
232 | Ilomata International Journal of Tax & Accounting Vol. 1 No. 4 October 2020
The influence between knowledge management on organizational performance, it is
concluded that there is a positive and significant relationship, this is in line with the results of
Almudallal's research (2015), but in his research he has a very high amount of influence, which is
70%. Knowledge management supported by information technology applications will also have a
significant effect on company performance (Lopez and Alegree, 2011). Meanwhile, Nowacki and
Bachnick (2015) concluded that there is a significant influence between knowledge management
on company effectiveness in terms of innovation ability, company revenue, competitiveness.
Meanwhile, Muthuveloo et al (2017) stated that there was a significant influence on the
dimensions of knowledge management, namely socialization and internalization on company
performance. Based on the research that has been done above in relation to the relationship
between knowledge management and organizational performance, the researchers draw the
following temporary conclusions:
H5: Knowledge management has a significant effect on organizational performance on chemical
manufacturing industry sector.
Based on the results of the descriptive test of respondents, the majority of the results were
as follows: The majority of respondents were male (69.1%), the majority of respondents were 30-
40 years old (46.4%), the majority of the working years were 11-15 years (36.1%). The majority
of education is undergraduate (76.3%), the majority position is Supervisor (29.9%).
Tabel 1.
Demographic Respondents
Profile
Frequency
%
1. Gender
Male
67
69,1
Female
30
30,9
2. Age
< 30 Years
11
11,3
30-40 years
45
46,4
41-50 Years
32
33
>50 Years
9
9,3
3. Service Years
0-5 Years
11
11,3
6-10 Years
18
18,6
11-15 Years
35
36,1
16-20 Years
22
22,7
21-25 Years
8
8,2
>25 Years
3
3,1
4. Education
Diploma
13
13,4
Bachelor Degree
74
76,3
Master Degree
10
10,3
5. Position
Supervisor
29
29,9
Sect. Head
18
18,6
Ass. Manager
24
24,7
Manager
22
22,7
GM
4
4,1
Source: Data Processing Results, 2020
The Effect of Organizational Performance, Competitive Advantage on the Financial Sector of Chemical
Manufacturing Industry in Banten Province
Nuryanto, Djamil MZ, Sutawidjaya, & Saluy
233 | Ilomata International Journal of Tax & Accounting Vol. 1 No. 4 October 2020
Outer Model Analysis Result. The results of the convergent validity indicators of each
variable are as follows; competency variables with indicators COM1, COM2, COM3, COM4,
COM5 and COM 6 respectively 0.734, 0.823, 0.657, 0.717, 0.688 and 0.793. Knowledge
management variable with indicators KM1, KM2, KM3, KM4, KM5 and KM6 respectively
0.777, 0.795, 0.799, 0.820, 0.817 and 0.801. The variable of competitive advantage with indicators
CA1, CA2, CA3, CA4 and CA5 respectively 0.809, 0.697, 0.911, 0.774 and 0.842. Organizational
performance variables with indicators OP1, OP2, OP3, OP4 and OP5 respectively 0.745, 0.822,
0.756, 0.812, and 0.869. The result of the loading indicator test is recommended to be above
0.70, but as long as the model is still in the development stage, the loading indicator value of 0.60
is still tolerable. From the test results above, it shows that each indicator of each competency
variable, knowledge management, competitive advantage and organizational performance shows
a result above 0.60. Composite Reliability
Table 2.
Value of Composite Reliability
Construct
Composite Reliability
Competence
0,877
Competitive Advantage
0,904
Knowledge Management
0,915
Organizational Performance
0,900
Source: Data Processing Results, 2020
The expected composite reliability value from the test results is ditas 0.70 which illustrates
that each indicator has high consistency for measuring latent variables. The results showed that
each construct had a composite reliability value above 0.70, which indicates the consistency of
the construct to measure high latent variables. Average Variance Extracted (AVE)
Table 3.
Average Variance Extract
Construct
AVE
Competence
0,544
Competitive Advantage
0,656
Knowledge Management
0,642
Organizational Performance
0,643
Source: Data Processing Results, 2020
The AVE value shows the variance value for each indicator in the construct that is
captured by these variables more than the variance caused by measurement errors. The
recommended AVE value is> 0.5. From the analysis, it was found that the AVE value for each
construct was greater than 0.50.Cronbach's Alpha.
Table 4.
Cronbach’s Alpha
Construct
Cronbach’s Alpha
Competence
0,9738
Competitive Advantage
0,9419
Knowledge Management
0,9863
Organizational Performance
0,9482
Source: Data Processing Results, 2020.
Goodness of fit test. The goodness of fit test results obtained R2 value for the construct of
competitive advantage of 0.651 which can be interpreted that competence and knowledge
The Effect of Organizational Performance, Competitive Advantage on the Financial Sector of Chemical
Manufacturing Industry in Banten Province
Nuryanto, Djamil MZ, Sutawidjaya, & Saluy
234 | Ilomata International Journal of Tax & Accounting Vol. 1 No. 4 October 2020
management have an impact on competitive advantage by 65.1% while the remaining 34.9% is
influenced by other variables. Whereas for the value of R2 construct organizational performance
has R2 of 0.678 which means, organizational performance is influenced by latent variables of
competitive advantage, competence and knowledge management by 67.8%, while the remaining
32.2% is influenced by other variables.
Table 5.
Value of R-Square
Construct
R-Square
Organizational Performance
0,678
Competitive Advantage
0,651
Source: Data Processing Results, 2019
Hypothesis Test. To answer the hypothesis that has been, it is seen the significance of
the influence between independent constructs on the dependent at the 5% significance level. The
results of the T-Statistics value are as follows:
Tabel 6.
Coefficients value (Original Sample), Standard Error and T-Statistics
Significance Test
Original
Sample
(O)
Standard
Error
(STERR)
T Statistics
(|O/STERR|)
P Values
Result
Competence -- > Competitive
Advantage
0,206
0,094
2,196
0,029
Significant
Competence -- > Organizational
Performance
0,212
0,126
1,979
0,046
Significant
Competitive Advantage -- >
Organizational Performance
0,532
0,018
4,494
0,000
Significant
Knowledge Management -- >
Competitive Advantage
0,653
0,080
8,173
0,000
Significant
Knowledge Management -- >
Organizational Performance
0,571
0,112
5,103
0,000
Significant
Source: Data Processing Results, 2019
Hypothesis 1. Bootstrapping test results obtained the coefficient value of the latent
variable competence on competitive advantage of 0.206 indicating that competence has a
positive influence on competitive advantage. As for the T-Statistic value, the value is 2.196 where
this value is greater than 1.96 and the P value of 0.0296 is smaller than 0.05, which indicates that
competence has a significant effect on competitive advantage, so that H1 in this study can be
accepted. This significance is in line with the results of research by Ismail et al. (2014) which
showed a significant relationship between competence and competitive advantage in small and
medium enterprises (SMEs), as well as the results of research by Hastjarjo et al (2016) which
showed the same results in the real industry. estate. Meanwhile, Agha et al (2012) and Jamhour
and Agha (2010) show the same results in the painting industry.
Hypothesis 2.The Bootstrapping test results show that the coefficient of knowledge
management latent variable on competitive advantage is 0.653 indicating that competence has a
positive influence on competitive advantage. As for the T-statistic value, the value of 8.173 is
obtained where this value is greater than 1.96 and the P value of 0.000 is less than 0.05, which
indicates that knowledge management has a significant effect on competitive advantage, so that
H2 in this study can be accepted. This significance is in line with the results of research
conducted by Mahdi et al (2018) whose research was conducted at universities in relation to
The Effect of Organizational Performance, Competitive Advantage on the Financial Sector of Chemical
Manufacturing Industry in Banten Province
Nuryanto, Djamil MZ, Sutawidjaya, & Saluy
235 | Ilomata International Journal of Tax & Accounting Vol. 1 No. 4 October 2020
industry as users. Meanwhile, Kusuma and Devie (2013) show the same relationship results
where their research was conducted on 100 managerial private companies in Surabaya.
Meanwhile, the research results of Nazarpour and Shirin (2017) show the same results, but in the
port industry in Iran. Almasi and Pirzad (2017), show the results of the same relationship
between knowledge management and competitive advantage in the banking industry and Lee et
al (2016) in small and medium enterprises (SMEs) in Malaysia.
Hypothesis 3. Bootstrapping test results show that the coefficient of the latent variable of
competitive advantage on organizational performance is 0.532, indicating that competitive
advantage has a positive influence on organizational performance. Whereas for the T-statistic
value, the value is 4.494 where this value is greater than 1.96 and the P value is 0.000 less than
0.05, which indicates that competitive advantage has a significant effect on organizational
performance, so that H3 in this study can be accepted. This significance is in line with the results
of research conducted by Cantele and Zardini (2018) which show significant results for small and
medium industries in Italy, while Lorenzo et al (2017) in the Spanish wine industry, Othman et al
(2015) on cooperatives registered in Malaysia, Kusuma and Devie (2013) for private companies
in Surabaya, and Gyampah and Acquaah (2008) for companies in Ghana.
Hypothesis 4. Bootstrapping test results obtained the coefficient value of the latent
variable competence on organizational performance of 0.212, indicating that competence has a
positive influence on organizational performance. As for the T-statistic value, the value is 1.979
where this value is greater than 1.96 and the P value of 0.046 is smaller than 0.05, which indicates
that competence has a significant effect on organizational performance, so that H4 in this study
can be accepted. This significance is in line with the results of research conducted by Otoo and
Mishra (2018) which show significant results for the hotel industry in India, while Hastjarjo et al
(2016) on the real estate industry in Indonesia, Nimsith et al (2016) on the banking industry in
Sri Lanka. , Agha et al (2012) and Jamhour and Agha (2010) on the painting industry in the UAE.
These results indicate that competence is a predictor of organizational performance that can
increase employee commitment to the company, economic performance, social performance and
environmental performance.
Hypothesis 5. The results of Bootstrapping test showed that the coefficient value of the
latent variable competence on organizational performance was 0.571 which shows that
competence has a positive influence on organizational performance. Whereas for the T-statistic
value, the value of 5.103 is obtained where this value is greater than 1.96 and the P value of 0.000
is less than 0.05, which indicates that knowledge management has a significant influence on
organizational performance, so that H5 in this study can be accepted. This significance is in line
with the results of research conducted by Meiranto et al (2012) showing significant results for the
banking industry in Indonesia, while Almudallal et al (2015) in the public sector in Palestine,
Nowacki and Bachnik (2015) on private companies in Poland and Muthuveloo et al (2017) in
local and foreign manufacturing industries registered with the Federation of Malaysian
Manufacturers. These results indicate that knowledge management is a predictor of
organizational performance. Competitive advantage as a mediator variable
a. The indirect coefficient of competence on organizational performance through competitive
advantage is 0.206 x 0.532 = 0.1096. Calculation of the Z value using the Sobel test is
obtained as follows:
The Effect of Organizational Performance, Competitive Advantage on the Financial Sector of Chemical
Manufacturing Industry in Banten Province
Nuryanto, Djamil MZ, Sutawidjaya, & Saluy
236 | Ilomata International Journal of Tax & Accounting Vol. 1 No. 4 October 2020
Where :
a = Coefficient of influence of competence on competitive advantage
b = coefficient of influence of competitive advantage on organizational performance
SEa = standard error of competence on competitive advantage
SEb = standard error of competitive advantage on organizational performance
With a Z score of 5.48 greater than Z 1.98, it can be concluded that competitive
advantage is able to mediate the relationship between competence and organizational
performance.
a. The indirect coefficient of knowledge management on organizational performance through
competitive advantage is 0.206 x 0.532 = 0.1096. Calculation of the Z value using the Sobel
test is obtained as follows:
Where :
a = Coefficient of influence of competence on competitive advantage
b = coefficient of influence of competitive advantage on organizational performance
SEa = standard error of competence on competitive advantage
SEb = standard error of competitive advantage on organizational performance
With a Z score of 7.89 greater than Z 1.98, it can be concluded that competitive advantage is
able to mediate the relationship between knowledge management and organizational
performance.
CONCLUSION
The role of competitive advantage on organizational performance is very important, this
can be proven where competitive advantage is able to increase the influence of competence and
knowledge management on organizational performance. Competence has a positive and
significant effect both on competitive advantage and on organizational performance, as well as
knowledge management which has a positive and significant effect on competitive advantage and
organizational performance. This study has implications for managers and control holders in the
company to be able to improve the competence of existing human resources by using the
existing dimensions of professional competence, core competence and unique differentiating
competences. By improving these three competencies, it will be able to improve company
performance in terms of commitment, economic performance, social performance and
environmental performance. Another implication is related to knowledge management which
can be used as a predictor for company managers which in this study is described into the
dimensions of knowledge identification, knowledge creation, knowledge storage, knowledge
sharing and knowledge use. The existence of good management of knowledge is an important
asset for companies in facing the industrial revolution 4.0 which leads to a knowledge-based
The Effect of Organizational Performance, Competitive Advantage on the Financial Sector of Chemical
Manufacturing Industry in Banten Province
Nuryanto, Djamil MZ, Sutawidjaya, & Saluy
237 | Ilomata International Journal of Tax & Accounting Vol. 1 No. 4 October 2020
economy. This research is not without drawbacks, given the limited number of respondents and
the variables used. It is hoped that further research can be continued by using more
comprehensive variables based on the RBV theory and also with a larger number of samples
from this study.
REFERENCES
Adiputra, I.P.P., & Mandala, K., (2017). Pengaruh Kompetensi dan Kapabilitas Terhadap
Keunggulan Kompetitif dan Kinerja Perusahaan. E-Jurnal Manajemen Unud. 6(11): 6090-
6119.
Agha, S., Alrubaiee, L., & Jamhour, M., (2012). Effect of Core Competence on Competitive
Advantage and Organizational Performance. International Journal of Business and
Management. 7(1): 192-204.
Almasi, F., & Pirzad, A., (2017). The Effect of Intellectual Capital and Knowledge Management
on Competitive Advantage: Testing the Mediating Role of Customer Relationship
Management. International Journal of Economic Perspective. 11(3): 895-904.
Almudallal, A.W., Bakri, N., Muktar, S.N., & El-farra, M.M., (2015). Implementing Knowledge
Management in the Palestinian Public Sector Institutions: Empirical Study on the
Presidency of the Palestinian Government. International Review of Management and
Marketing. 6(S4): 101-107.
Al-Refaie, A., & Al-Tahar, M., (2015). Effect of Knowledge Management and Organizational
Learning on Firm Performance. Journal of Nature Science and Sustainable technology.
8(3): 369-390.
Ansoff, I. (1965). Corporate Strategy. New York: McGraw-Hill, 1965.
Awaad, A.S., Al khattab, A.A., & Anchor, J.H., (2013). Competitive Priorities and Competitive
Advantage in Jordanian Manufacturing. Journal of Service Science and Management. 6: 69-
79.
Banerjee, P., (2003). Resource Dependence and Core Competence: Insights from Indian
Software Firms, Technovation, 23: 251-263.
Barney, J., (1991). Firm Resources and Sustained Competitive Advantage. Journal of
Management. 17(1): 99-120.
Cahyaningsih, E., Sensuse, D.A., Arymurthy, A.M., & Wibowo, W.C., (2017). NUSANTARA: A
New Model of Knowledge Management in Government Human Capital Management.
Procedia Computer Science. 124: 61-68.
Cantele, S., & Zardini, A., (2018). Is sustainability a competitive advantage for small businesses?
An empirical analysis of possible mediators in the sustainabilityefinancial performance
relationship. Journal of Cleaner Production. 182: 166-176.
Chen, Y. F., & Wu, T. C., (2007). An empirical analysis of core competence for high-tech firms
and traditional manufacturers. Journal of Management Development, 26, 2, 159-168.
Deeds, D.L., & Hill, C.W.L., (1996). Strategic Alliances and the Rate of New product
Development: An Empirical Study of Entrepreneurial biotechnology Firms. Journal of
Business Venturing. 11: 41-55.
Ding, H., Fu, Y., Zheng, L., & Yan, Zh., (2018). Determinants of the competitive advantage of
dairy supply chains: Evidence from the Chinese dairy industry. International Journal of
Production Economics. 1-42.
The Effect of Organizational Performance, Competitive Advantage on the Financial Sector of Chemical
Manufacturing Industry in Banten Province
Nuryanto, Djamil MZ, Sutawidjaya, & Saluy
238 | Ilomata International Journal of Tax & Accounting Vol. 1 No. 4 October 2020
Emilia, H., (2015). The importance of the manufacturing sector in the Romanian economy.
Procedia Technology. 22: 976-983.
Ferdinand, A. (2002). Structral Equation Modelling dalam penelitian manajemen. Semarang: FE
UNDIP.
Friedlander, F., & Pickle, H., (1968). Components of Effectiveness in Small Organizations.
JSTOR. 13(2): 289-304.
Garcia, C.Q., & Velasco, C.A.B., (2008). Innovative competence, exploration and exploitation:
The influence of technological diversification. Research Policy. 37: 492-507.
Gautam, D.K., & Ghimire, S.B., (2016). Psychological empowerment of employees for
competitive advantages An empirical study of Nepalese service sector. International
Journal of Law and Management. 59(4): 466-488.
Gyampah, K.A., & Acquaah, M., (2008). Manufacturing strategy, competitive strategy and firm
performance: An empirical study in a developing economy environment. International
Journal of Production Economics. 111: 575-592.
Hafeez, K., & Abdelmeguid, H., (2003). Dynamics of human resource and knowledge
management. Journal of the Operational Research Society, 54(12), 153–164.
Hameed, Imran. (2009). Sources of Business Competitive Advantage: A Review. Journal of
Business & Economics. 222-233.
Hamel, G. & Prahalad, C.K. (1994). Competing for The Future. Boston : Harvard Business
School Press.
Hastjarjo, K., Yahya, D.K., Afiff, F., & Rufaidah, P., (2016). Core Competence on Real Estate
Industry in Globalization Phenomenon: A Contemporary Approach. International Journal
of Economics and Financial Issues. 6(5): 14-19.
Hazen, B.T., (2015). Knowledge Management for Logistic Service Providers: The Rule of
Learning Culture. Industrial Management and Data System. 116(3): 584-602
Hellriegel, D & Slocum, J. W. (2011). Organizational Behavior. Mason: SouthWestern, Cengage
Learning.
Hertati, L (2015). Competence of Human Resources, The Benefits of Information Technology
on Value of Financial Reporting in Indonesia. Research Journal of Finance and
Accounting 6, (8) 12-18
Hertati, L.(2015). Impact of uncertainty of environment and organizational cultural on
accounting information system management and implications for managerial performance
proposing a conceptual framework. International Journal of Economics, Commerce and
Management United Kingdom 3 (12) 455-468.
Hertati, L. (2015). Total Quality Management As Technics On Strategic Management
Accounting. International Journal of Recent Advances in Multidisciplinary Research 2,
(11),.0942-0949
Hertati, L.& Zarkasyi, W. (2015). Effect Of Competence User Information System, The Quality
Of Accounting Information Systems Management And Implications Insatisfaction User
Information System (State Owner In Sumatera Selatan. European Journal of Accounting,
Auditing and Finance Research 3, (2).35-60.
Hertati, L. (2015). Internal Control And Ethics Of Quality Management System Accounting
Information And Implications On The Quality Of Accounting Information Management:
Proposing A Research Framework. International Journal of Economics, Commerce and
Management United Kingdom 3 (6) 902-913
The Effect of Organizational Performance, Competitive Advantage on the Financial Sector of Chemical
Manufacturing Industry in Banten Province
Nuryanto, Djamil MZ, Sutawidjaya, & Saluy
239 | Ilomata International Journal of Tax & Accounting Vol. 1 No. 4 October 2020
Hertati, L. & Sumantri R. (2016). Just In Time, Value Chain, Total Quality Management, Part Of
Technical Strategic Management Accounting. International Journal Of Scientific &
Technology Research 5( 4) 181-191
Hertati, L & Syafarudin.A. (2018). How the Implementation of the Industrial Revolution 4.0
Management Information System Influenced Innovation: The Case of Small and Medium
Enterprises in Indonesia. Journal of Asian Business Strategy. 8 ( 2) 52-62
Hertati, L., Zarkasyi.W., Suharman. H., & Umar. H. (2019). The Effect of Human Resource
Ethics on Financial Reporting Implications for Good Government Governance (Survey of
Related Sub-units in State-owned Enterprises in SUMSEL). International Journal of
Economics and Financial. 9(4), 267-276
Hertati, L, Susanto. A. Zarkasyi. W, Suharman. H, & Umar. H. (2019). Pengujian Empiris
Bagaimana Kualitas Sistem Informasi Akuntansi Yang Dipengaruhi Oleh Etika Organisasi
Berimplikasi Terhadap Kualitas Informasi Akuntansi (Surveypada Badan Usaha Milik
Negara (Bumn) Di Sumatera Selatan Indonesia).
Jurnal Ilmiah Akuntansi Rahmaniyah
(JIAR) 3 (1) 88 – 107.
Hertati, L & Safkaur. (2020). The Influence of Information Technology Covid-19 Plague Against
Financial Statements and Business Practices IJTC Ilomata International Journal of Tax &
Accounting. 1 (3) 122-131
Hertati, L, Safkaur. O, & Simanjuntak.O.M.(2019). How to Align Management Commitments to
the Successful Implementation of Management Accounting Information Systems in
Manager Decision Making. IJTC Ilomata International Journal of Tax & Accounting 1 (2)
89.93.
Hertati, L, & Safkaur.O, (2019). Impact Of Business Strategy On The Management Accounting:
The Case Of The Production Of State-Owned Enterprises In Indonesia, South Sumatra.
Journal of Asian Business Strategy 9, ( 1) 29-39.
Hertati, L. Widiyanti. M. Desfitrina. & Syafarudin. A. (2020). The Effects Of Economic Crisis
On Business Finance. International Journal of Economics and Financial Issues 10, (3) 236-
244.
Hertati, L, Fery.I, & Safkaur. O. (2020). Pengaruh Komitmen Organisasi Terhadap Sistem
Informasi Keuangan. Akuntabilitas: Jurnal Ilmu Akuntansi Volume 13 (1),125-136.
Ismail, M.D., Domil, A.K.A., & Isa, A.M., (2014). Managerial Competence, Relationship Quality
and Competitive Advantage among SME Exporters.Procedia Social and Behavioral
Sciences. 115: 138-146.
Iuliana, E., & Criveanu, M., (2016). Financial and Non Financial Indicators For Organizational
Performance Measurement. Faculty of Economics and Administration, Romania. 1-12.
Jamhour, M.S., & Agha, S.H., (2010). The Impact of Core Competence on Organizational
Performance. Middle East university. 1-134.
Jenatabadi, H.S., (2015). An Overview of Organizational Performance Index: Definitions and
Measurements. International Journal of Business and Management. 8(19): 107-117.
Kerlinger, F.N. (2000). Azas-azas penelitian behavioral. Yogyakarta: Gajah Mada University
Press.
Khan, R.A. (2012). Knowledge Management: A Framework for Competitive Advantage. Global
Journal for Information Technology and Computer Science, vol. 1 (1).l
The Effect of Organizational Performance, Competitive Advantage on the Financial Sector of Chemical
Manufacturing Industry in Banten Province
Nuryanto, Djamil MZ, Sutawidjaya, & Saluy
240 | Ilomata International Journal of Tax & Accounting Vol. 1 No. 4 October 2020
Ko, W.H., (2015). Constructing a professional competence scale for foodservice research&
development employees from an industry viewpoint. International Journal of Hospitality
Management. 49: 66-72.
Kusuma, F.S.D., & Devie, (2013). Analisa Pengaruh Knowledge Management terhadap
Keunggulan Bersaing dan Kinerja Perusahaan. Business Accounting Review. 1(2): 161-171.
Lee, V.H., Foo, A.T.L., Leong, L.Y., & Ooi, K.B., (2016). Can Competitive Advantage be
Achieved Through Knowledge Managemen A Case study on SMEs. 1-44.
Lestari, R & Hertati, L.(2020). Bagaimana Pengaruh Strategi Bisnis, Kekuatan Produk Terhadap
Kualitas Sistem Informasi Akuntansi Manajemen: Studi Kasus Pada Usaha Kecil Dan
Menengah Di Indonesia. KAJIAN AKUNTANSI. 21(1)1-12.
Leonard-Barton, D. (1992). Core capabilities and core rigidities: A paradox in managing new
product development. Strategic Management Journal, 13: 111–125.
Li, D.Y., Liu, J., (2012). Dynamic capabilities, environmental dynamism, and competitive
advantage: Evidence from China. JBR Journal of Business Research. 1-7.
Li, S., Nathan, B.R., Nathan, T.S.R., & Rao, S.S., (2006). The impact of supplychain management
practices on competitiveadvantage and organizational performance. The International
Journal of Management and Science. 34: 107-124.
Ling, T.N., Yih, G.C., Eze, U.C., Gan, G.G.G., & Ling, L.P., (2008). Knowledge Management
Drivers for Organizational Competitive Advantage. Proceeding of Applied international
Business Conference. 501-510.
Lopez. S.P., & Alegre, J., (2011). Information technology competency, knowledge processes and
firm performance. Emerald Insight. 112(4): 644-662.
Lorenzo, J.R.F., Rubio, M.T.M., & Garces, S.S. (2018). The competitive advantage in business,
capabilities and strategy. What general performance factors are found in the Spanish wine
industry?. Science Direct. 1-15.
Lysaght, R.M., Altschuld, J.W., Grant, H.K., & Henderson, J.L., (2001). Variables Affecting the
Competency Maintenance Behaviors of Occupational Therapists. AOTA. 55: 1-8.
MacLeod, A.K., & Conway, C., (2007). Well-being and positive future thinking for the self versus
others. Psychology Press. 21(5): 1114-1124.
Mahdavi, M.A.P., & Pirzad, A., (2017). Study on Effect of Intellectual Capital on Knowledge
Sharing. International Business Management. 11(3): 814-820.
Mahdi, O.R., Nassar, I.A., & Almsafir, M.K., (2018). Knowledge management processes and
sustainable competitive advantage: An empirical examination in private universities.
Journal of Business Research. 2(13): 1-15.
Mansfield, R.S., Busse, T.V., & Kreplka, E.J., (1978). The Effectiveness of Creativity Training.
Review of Educational Journal.
McCelland, D.C. (1973). Testing for Competence Rather than for Intelligence. American
Psychologist. 1-14.
McFadyen, M.A., & Canella Jr, A.A., (2004). Social Capital and Knowledge Creation:
Diminishing Returns of the Number and Strength of Exchange. Academy of Management.
47(5): 735-746.
Meiranto, W., Puspitasari, E., Sari, I.M., (2012). Pengelolaan Knowledge Management Capability
Dalam Memediasi Dukungan Information technologies Relatedness Terhadap Kinerja
Perusahaan: Pendekatan Reflective Second Order Factor. Jurnal Akuntansi AKRUAL.
3(2): 114-129.
The Effect of Organizational Performance, Competitive Advantage on the Financial Sector of Chemical
Manufacturing Industry in Banten Province
Nuryanto, Djamil MZ, Sutawidjaya, & Saluy
241 | Ilomata International Journal of Tax & Accounting Vol. 1 No. 4 October 2020
Morin, E.M., & Audebrand, L.K., (2014). Organizational Performance and Meaning of Work:
Correcting for Restricted Range. Organizational Performance and Meaning of Work. 1-19.
Munir, N.S., (2011). Penerapana Manajemen Pengetahuan di Perusahaan Indonesia. PPM of
School Management. 1-13.
Muthuveloo, R., Shanmugam, N., Teoh, A.P., (2017). The impact of tacit knowledge
management on organizational performance: Evidence from Malaysia. Asia Pacific
Management Review. 1-10.
Nazarpour, M., Shirin, Z.B., (2017). Relation among Processes of Human Resources and
Obtaining the Organizational Axial Capability with Intermediation Role of Knowledge
Management Based on Modeling Structural Equations (Case Study: Khuzestan General
Directorate of Ports and Maritime - Special Economic Zone of the Imam Khomeini Port).
International Review of Management and Marketing. 7(3): 77-85.
Nimsith, S.I., Rifas, A.H., & Cader, M.J.A., (2016). Impact of Core Competency on Competitive
Advantage of Banking Firms in Sri Lanka. International Journal of Science Research and
Innovative Technology. 3(7): 64-72.
Nowacki, R., & Bachnik, K., (2015). Innovations within knowledge management. Journal of
Business Research. 1-5.
Othman, R., Arshad, R., Aris, N.A., & Arif, S.M.H., (2015). Organizational Resources and
Sustained Competitive Advantage of Cooperative Organizations in Malaysia. Procedia
Social and Behavior sciences. 170: 120-127.
Otoo, F.N.K., & Mishra, M., (2018). Impact of Human Resource Management (HRM) Practices
on Hotel Industry’s Performance: The Mediating role of Employee Competencies. Indian
Journal of Commerce & Management Studies. 9(2): 17-29.
Penrose, E.T., (1959). The Theory of the Growth of the Firm. Oxford University Press: Oxford
Porter, M.E., (1985). Competitive Advantage: Creating and Sustaining Superior Performance:
with a new introduction. The Free Press. New York, USA.
Sanchez, R. & Heene, A. (1997). Reinventing strategic management: New theory and practice for
competence-based competition, European Management Journal, 15(3), 303-317.
Syarudin, A & Hertati, L. (2020). Penerapan Human Capital, Kualitas Pelayanan Pada Sistem
Informasi Manajemen. 5 (1 ) 31-45
Safkaur, O, & Herati, L. (2020). Perubahan Striktur Modal Menyebabkan Perubahan Struktur
Modal. Jurnal Ekonomi Dan Perbankan 9(2) 94-105
Srivastava, S.C., (2005). Managing Core Competence of the Organization. VIKALPA. 30(4): 49-
63.
Stefanikova, L., & Masarova, G., (2014). The need of complex competitive intelligence. Procedia
Social and Behavior Sciences. 110: 669-677.
Stoner, C.R., 1987. Distinctive Competence and Competitive Advantage. Journal of Small
Business Management. 25(2): 33-39.
Sulistyandari & Handayani, (2011). Membangun Keunggulan Bersaing Berkelanjutan: Sebuah
Kajian Literatur Pada Konteks Usaha Kecil dan Menengah. Jurnal Ekonomi Bisnis dan
Akuntansi. 1 (1): 1-15.
Tsou, H.T., Chen, J.S., & Liao, W.H., (2014). Market and technology orientations for service
delivery innovation: the link of innovative competence. Journal of Business & Industrial
Marketing. 29(6): 499-513.
The Effect of Organizational Performance, Competitive Advantage on the Financial Sector of Chemical
Manufacturing Industry in Banten Province
Nuryanto, Djamil MZ, Sutawidjaya, & Saluy
242 | Ilomata International Journal of Tax & Accounting Vol. 1 No. 4 October 2020
Turulja, R., & Bajgoric, N., (2018). Knowing Means Existing: Organizational Learning
Dimensions and Knowledge Management Capability. De Gruyter. 9(1): 1-19.
Zaied, A.N.H., Hussein, G.S., & Hassan, M.M., (2012). The Role of Knowledge Management in
Enhancing Organizational Performance. International Journal of Information Engineering
and Electronic Business. 1-10.
