THE ROLE OF DISTINCT COMPETENCY AND LEARNING ORGANIZATION IN ENHANCING FIRM’s SUSTAINABLE COMPETITIVE ADVANTAGE

Abstract

Achieving a long-term competitive advantage is becoming increasingly important as the global rivalry grows more fiercely. According to previous research, a company can claim a competitive advantage if it begins implementing a strategy that generates value for it but is not being employed by any of its competitors. However, there appears to be a lack of research in this area. Therefore, this study aims to analyze the development of resources with characteristics of value, scarcity, imperfect imitability, non-substitution, distinct competency and learning organization that will translate into a sustainable competitive advantage in organizations. The data analysis technique used in this quantitative research is Structural Equation Modelling (SEM). The process of determining the target population in this study uses non-probability sampling with the purposive sampling technique. The number of samples to be taken in this study was determined at 176. Data was collected using a questionnaire with an assessment using a Likert scale. This study indicates that value, scarcity, imperfect imitability, and non-substitution directly and significantly affect the Distinctive competency of organizations in South Sumatra. Moreover, the relationships of distinctive competency with learning organizations and sustainable competitive advantage are also found to be significant.  However, the hypothesis regarding the relationship between distinct competency and learning organization is not supported by the findings of the study.