Sustainable Competitive Advantage in the Manufacturing Firms: The Effects of Planning Flexibility and Entrepreneurship with Business Environment as a Moderating Variable

Abstract

This study aims to investigate the effects of planning flexibility and entrepreneurship moderated by the business environment on sustainable competitive advantage in manufacturing firms. Data were collected through questionnaires spread through manufacturing firms in South Sumatera, Indonesia and the Central Bureau of Statistics. A total of 308 responses were analyzed through Structural Equation Modelling (SEM) approach using the statistical package AMOS 22.0. The results evidence that, before moderated by business environment, planning flexibility does not affect sustainable competitive advantage, whereas entrepreneurship affects sustainable competitive advantage. After moderated by the business environment, both planning flexibility and entrepreneurship affect sustainable competitive advantage.