The study finds out how digital capability adoption has the influence to increase sustainable competitive advantage through the innovation strategy of the small food business in Pekanbaru, Indonesia. This study is based on resources that cannot be dir...
The study finds out how digital capability adoption has the influence to increase sustainable competitive advantage through the innovation strategy of the small food business in Pekanbaru, Indonesia. This study is based on resources that cannot be directly converted into the sustainable competitive advantage of companies but must go through an entrepreneurial process and offer new insights into the use of digital technology innovation as valuable corporate resources. This is quantitative research and the research population is 36 small food businesses in Pekanbaru Indonesia. The sample was taken using random sampling. The data is processed with the Structural Equation Modeling with Partial Least Squares approach. The results show that digital capability has a significant effect on sustainable competitive advantage, the digital capability has also a significant effect on innovation strategy. Then, innovation strategy has no significant effect on sustainable competitive advantage. This indicates that digital capability in small food businesses can be directly converted into a competitive advantage through innovation strategy. To develop an innovative strategy, small food businesses must improve their digital capabilities, especially their digital technology infrastructure.