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December 22, 2025Jurnal EMT KITA

Innovation Capability, Absorptive Capacity, and Collaborative Networks as Determinants of Competitive Advantage in the SME Laundry Sector

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Authors

RFRayhan FaizDIDessy IsfianadewiYSYusuf Ahmad Sudrajat

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Overview

Research shows innovation capability boosts competitive advantage in SMEs, indicating collaborative networks' importance.

Key Points

  • This research aims to explore the roles of innovation capability and absorptive capacity in enhancing competitive advantage for SMEs.
  • Participants included 113 SME owners and managers in the laundry service industry.
  • Data was collected using a structured questionnaire with a five-point Likert scale.
  • The analysis employed Partial Least Squares-Structural Equation Modeling (PLS-SEM) with SmartPLS.
  • Innovation capability significantly enhances competitive advantage (β = 0.456, p < 0.001).
  • Absorptive capacity also significantly improves competitive advantage (β = 0.439, p < 0.001).
  • Collaborative networks positively impact competitive advantage (β = 0.286, p = 0.001) and partially mediate the relationship between absorptive capacity and competitive advantage (β = 0.109, p = 0.048).

Cite This Study

Faiz et al. (2025) studied this question.

synapsesocial.com/papers/69488bc877063b71e748cfdfhttps://doi.org/10.35870/emt.v10i2.5622
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Also Consider

Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context:

  1. 1Network Embeddedness and Innovation Performance of Small and Medium Enterprises: Mediating Role of Absorptive Capacity2022
  2. 2Unpacking the drivers of innovation performance: The interplay between managerial, relational, technological, and learning capabilities with innovation strategy2025
  3. 3Innovation Capability and Financial Performance of Fashion Small and Medium Enterprises: The Role of Dynamic Relational Capability2025
  4. 4The Mechanism of Sustainability Orientation Towards <scp>SME</scp> Innovation and Performance: The Role of Organizational Capabilities and Co‐Innovation2025 · 2 citations
  5. 5Enterpreneurial orientation and relational capability: the network advantage to marketing performance in SMEs2025