International Journal of Interdisciplinary and Sustainability (IJIS)

The Impact of Organizational Dynamic Capabilities on Competitive Advantage and Its Effect on Organizational Performance

Pekhanang Yodmanee — 2025-01-29

This research investigates the role of dynamic capabilities in achieving competitive advantage and enhancing organizational performance within technology-based SMEs. Specifically, it examines 1) the direct impact of organizational dynamic capabilities on competitive advantage, 2) the mediating role of competitive advantage in the relationship between dynamic capabilities and performance, and 3) the influence of developing and reconfiguring dynamic capabilities on organizational performance in dynamic markets. The study utilized a structured questionnaire, distributed electronically to a sample of 400 SMEs of managerial-level employees from small and medium-sized enterprises (SMEs) in a technology industry, strategically selected through stratified random sampling to ensure representation across diverse business contexts within the technology sector. The questionnaire comprised sections measuring adaptability, innovation, resource management, competitive strategies, and performance indicators, employing a 5-point Likert scale for responses. Regression analysis was conducted to validate the hypothesized relationships among variables. The findings demonstrate a significant positive relationship between dynamic capabilities and competitive advantage, showing that organizations with heightened adaptability, innovation, and efficient resource management excel in achieving cost leadership, differentiation, and market responsiveness. Furthermore, competitive advantage serves as a crucial mediating factor, enabling dynamic capabilities to indirectly impact organizational performance by fostering a competitive edge. Continual development and reconfiguration of these capabilities were found to positively influence performance, as evidenced by increased market share, innovation outcomes, and financial success. This study bridges a critical gap in the academic literature by providing empirical evidence of the strategic importance of dynamic capabilities in SMEs and their role in achieving competitive advantage and superior performance. The findings offer actionable insights for SME leaders, emphasizing the importance of cultivating dynamic capabilities to navigate rapidly evolving, technology-driven markets effectively. These contributions enhance the understanding of dynamic capabilities' strategic potential, serving as a valuable resource for both researchers and practitioners.

Can Work Productivity be Achieved?

Lie Sian — 2025-01-29

The goal of this research was to investigate and quantify the impact of compensation, work discipline, and work motivation on employee productivity. The object of this research is PT. XYZ in the city of Jakarta in the country of Indonesia. Respondents in this study were 57 employees. Samples were obtained using saturated sampling techniques. Data collection techniques using a questionnaire and likert scale. Testing the hypothesis in this study using multiple linear regression method. The result of hypothesis testing show that compensation and work discipline have no effect on employee work productivity, and work motivation has an effect on employee work productivity.

Company Value and Other Factor Influence Income Smoothing with Firm Size as Moderating Variable

Diva Sheena — 2025-01-29

The purpose of this study is to provide empirical evidence regarding the effect of the Cash Holding, Profitability, Financial Leverage, Dividend Policy, and Company Value as independent variables and also Firm Size as moderating variable that affect income smoothing as dependent variable. The study used population of cyclical and non-cyclical and also transportation and logistic companies listed on the Indonesia Stock Exchange from 2017 to 2022, with sample consisting of 35 companies selected through purposive sampling method. The analysis method used was purposive sampling. The research results showed that cash holding, profitability, dividend policy, company value, and firm size have no significant effect on income smoothing while financial leverage has positive significant effect on income smoothing and also firm size doesn’t moderate profitability and dividend policy effect on income smoothing, while firm size weakens financial leverage effect on income smoothing.

The Fraud Diamond in Action: Predicting Financial Misreporting in Indonesia

Nicken Destriana — 2025-01-29

Fraudulent financial reporting poses a significant threat to the stability and integrity of financial markets, impacting stakeholders' decisions and eroding investor confidence. This study investigates the influence of factors outlined in the fraud diamond framework on the likelihood of fraudulent financial reporting. Using a sample of 269 data points from 90 consumer cyclical and non-cyclical companies listed on the Indonesia Stock Exchange between 2020 and 2022, we examined the relationship between potential predictors of fraudulent reporting (financial targets, financial stability, external pressure, nature of industry, changes in auditors, audit reports, and changes of directors) and fraudulent financial reporting. Our findings indicate that, among the factors studied, only the presence of challenging financial targets significantly correlates with an increased likelihood of fraudulent financial reporting. Other factors examined did not show a statistically significant association. This study provides empirical evidence that unrealistic financial targets can create an environment conducive to financial statement manipulation. The findings underscore the importance of setting achievable targets and implementing robust internal controls to mitigate the risk of fraudulent financial reporting.