The role of competitiveness as mediating effect of environmental uncertainty on performance of fisheries companies

La Hatani

doi:10.24914/jeb.v26i1.3470

Authors

La Hatani Faculty of Economics and Business, Halu Oleo University

DOI:

https://doi.org/10.24914/jeb.v26i1.3470

Keywords:

Environmental uncertainty, competitiveness, company performance

Abstract

Current research purpose to analyze and explain the influence of environmental uncertainty on competitiveness and fishery company performance, then also aims to examine the mediating role of competitiveness. This research uses a quantitative approach, with data collection using questionnaires. The sampling in this study was determined based on criteria represented by 3 people at the management level of 19 fishing companies (i.e. directors, operational managers, and supervisors), thus a total sample of 57 managers in the fisheries company. Data analysis and hypothesis testing in this current research using generalized Structured Component Analysis (GSCA). Research findings indicate a positive and significant influence between environmental uncertainty on competitiveness and fishery company performance. Similarly, the competitiveness has a positive and significant effect on fishery company performance. Lasty, competitiveness has a role as partial mediation of the influence environmental uncertainty toward fishery company performance. The practical implications of the results of this study are the importance of fishing companies to adapt to environmental uncertainties in order to create competitiveness and improve company performance.

Downloads

Download data is not yet available.

References

Aiginger, K., & Vogel, J. (2015). Competitiveness: From a misleading concept to a strategy supporting beyond GDP goals. Competitiveness Review, 25(5), 497–523. https://doi.org/10.1108/CR-06-2015-0052

Allegrini, V., & Monteduro, F. (2018). The role of uncertainty in performance information disclosure. International Journal of Public Sector Management, 31(5), 583–598. https://doi.org/10.1108/IJPSM-08-2017-0216

Anwar, M., Rehman, A. U., & Shah, S. Z. A. (2018). Networking and new venture’s performance: Mediating role of competitive advantage. International Journal of Emerging Markets, 13(5), 998–1025. https://doi.org/10.1108/IJoEM-07-2017-0263

Astuti, E., Suhadak, Rahayu, S. M., & Wilopo. (2018). The influence of information technology strategy and management support to the internal business process, competitive advantage, financial and non-financial performance of the company. International Journal of Web Information Systems, 14(3), 317–333. https://doi.org/10.1108/IJWIS-11-2017-0079

Bae, H. S. (2017). Empirical relationships of perceived environmental uncertainty, supply chain collaboration and operational performance: Analyses of direct, indirect and total effects. The Asian Journal of Shipping and Logistics, 33(4), 263–272. https://doi.org/10.1016/j.ajsl.2017.12.010

Bagur-Femenías, L., Martí, J., & Rocafort, A. (2015). Impact of sustainable management policies on tourism companies’ performance: The case of the metropolitan region of Madrid. Current Issues in Tourism, 18(4), 376–390. https://doi.org/10.1080/13683500.2014.932757

Beheshtifar, M., & Zare, E. (2013). Employee creativity: A compulsory factor in organizations. Interdisciplinary Journal of Contemporary Research in Business, 5(2), 242–247.

Bernal-Conesa, J. A., Briones-Peñalver, A. J., & Nieves-Nieto, C. de. (2017). Impacts of the CSR strategies of technology companies on performance and competitiveness. Tourism & Management Studies, 13(4), 73–81. https://doi.org/10.18089/tms.2017.13408

Cantele, S., & Cassia, F. (2020). Sustainability implementation in restaurants: A comprehensive model of drivers, barriers, and competitiveness-mediated effects on firm performance. International Journal of Hospitality Management, 87(September 2019), 102510. https://doi.org/10.1016/j.ijhm.2020.102510

Central Bureau of Statistics Indonesia. (2023). Provinsi Sulawesi Tenggara dalam angka 2023. In sultra.bps.go.id.

Chen, J., Reilly, R. R., & Lynn, G. S. (2005). The impacts of speed-to-market on new product success: The moderating effects of uncertainty. IEEE Transactions on Engineering Management, 52(2), 199–212. https://doi.org/10.1109/TEM.2005.844926

Chin, T. A., Hamid, A. B. A., Rasli, A., & Tat, H. H. (2014). A literature analysis on the relationship between external integration, environmental uncertainty and firm performance in Malaysian SMEs. Procedia - Social and Behavioral Sciences, 130, 75–84. https://doi.org/10.1016/j.sbspro.2014.04.010

Darvishmotevali, M., Altinay, L., & De Vita, G. (2018). Emotional intelligence and creative performance: Looking through the lens of environmental uncertainty and cultural intelligence. International Journal of Hospitality Management, 73(January), 44–54. https://doi.org/10.1016/j.ijhm.2018.01.014

Famiyeh, S. (2017). Corporate social responsibility and firm’s performance: Empirical evidence. Social Responsibility Journal, 13(2), 390–406. https://doi.org/10.1108/SRJ-04-2016-0049

Fernandes, A. A. R., & Solimun. (2017a). Moderating effects orientation and innovation strategy on the effect of uncertainty on the performance of business environment. International Journal of Law and Management, 59(6), 1211–1219. https://doi.org/10.1108/IJLMA-10-2016-0088

Fernandes, A. A. R., & Solimun. (2017b). The mediating effect of strategic orientation and innovations on the effect of environmental uncertainties on the performance of business in the Indonesian aviation industry. International Journal of Law and Management, 59(6), 1269–1278. https://doi.org/10.1108/IJLMA-10-2016-0087

Flynn, B. B., Huo, B., & Zhao, X. (2010). The impact of supply chain integration on performance: A contingency and configuration approach. Journal of Operations Management, 28(1), 58–71. https://doi.org/10.1016/j.jom.2009.06.001

Frank, H., Güttel, W., & Kessler, A. (2017). Environmental dynamism, hostility, and dynamic capabilities in medium-sized enterprises. The International Journal of Entrepreneurship and Innovation, 18(3), 185–194. https://doi.org/10.1177/1465750317723219

Gupta, A. K., & Gupta, N. (2020). Effect of corporate environmental sustainability on dimensions of firm performance – Towards sustainable development: Evidence from India. Journal of Cleaner Production, 253, 119948. https://doi.org/10.1016/j.jclepro.2019.119948

Hadj, T. B. (2020). Effects of corporate social responsibility towards stakeholders and environmental management on responsible innovation and competitiveness. Journal of Cleaner Production, 250, 119490. https://doi.org/10.1016/j.jclepro.2019.119490

Hair Jr, J., Hult, G. T., Ringle, C., & Sarstedt, M. (2016). A primer on partial least squares structural equation modeling (PLS-SEM) (2nd ed.). SAGE Publications.

Hamid, N. (2018). Use balanced scorecard for measuring competitive advantage of infrastructure assets of state-owned ports in Indonesia. Journal of Management Development, 37(2), 114–126. https://doi.org/10.1108/JMD-12-2016-0313

Hannigan, T. J., Hamilton III, R. D., & Mudambi, R. (2015). Competition and competitiveness in the US airline industry. Competitiveness Review, 25(2), 134–155. https://doi.org/10.1108/CR-11-2014-0036

Harash, E. (2015). The role of environmental uncertainty in the link between accounting information system and performance small and medium enterprises in Iraq. Global Journal of Management And Business Research, 15(G2), 27–32.

Hart, S. L. (1995). A natural-resource-based view of the firm. The Academy of Management Review, 20(4), 986–1014. https://doi.org/10.2307/258963

Heizer, J., Render, B., & Munson, C. (2017). Operations management: Sustainability and supply chain management (12th ed.). Pearson Education.

Henseler, J., Hubona, G., & Ray, P. A. (2016). Using PLS path modeling in new technology research: Updated guidelines. Industrial Management & Data Systems, 116(1), 2–20. https://doi.org/10.1108/IMDS-09-2015-0382

Heredia, J., Flores, A., Geldes, C., & Heredia, W. (2017). Effects of informal competition on innovation performance: The case of Pacific Alliance. Journal of Technology Management & Innovation, 12(4), 22–28. https://doi.org/10.4067/S0718-27242017000400003

Hoang, T. (2018). The role of the integrated reporting in raising awareness of environmental, social and corporate governance (ESG) performance. In Developments in Corporate Governance and Responsibility (Vol. 24, pp. 47–69). https://doi.org/10.1108/S2043-052320180000014003

Hosseini, S. M., & Sheikhi, N. (2012). An empirical examination of competitive capability’s contribution toward firm performance: Moderating role of perceived environmental uncertainty. International Business Research, 5(5), 116–131. https://doi.org/10.5539/ibr.v5n5p116

Hwang, H., & Takane, Y. (2004). Generalized structured component analysis. Psychometrika, 69(1), 81–99. https://doi.org/10.1007/BF02295841

Hwang, H., & Takane, Y. (2014). Generalized structured component analysis. In Marketing Research (Vol. 22, Issue 4). Chapman and Hall/CRC. https://doi.org/10.1201/b17872

Jain, P., Vyas, V., & Roy, A. (2017). Exploring the mediating role of intellectual capital and competitive advantage on the relation between CSR and financial performance in SMEs. Social Responsibility Journal, 13(1), 1–23. https://doi.org/10.1108/SRJ-04-2015-0048

Junquera, B., & Barba-Sánchez, V. (2018). Environmental proactivity and firms’ performance: Mediation effect of competitive advantages in Spanish wineries. Sustainability, 10(7), 2155. https://doi.org/10.3390/su10072155

Kafetzopoulos, D., Psomas, E., & Skalkos, D. (2019). Innovation dimensions and business performance under environmental uncertainty. European Journal of Innovation Management, 23(5), 856–876. https://doi.org/10.1108/EJIM-07-2019-0197

Kaplan, R. S. (2009). Conceptual foundations of the balanced scorecard. In Handbooks of Management Accounting Research (Vol. 3, pp. 1253–1269). https://doi.org/10.1016/S1751-3243(07)03003-9

Khalid, S., Beattie, C., Sands, J., & Hampson, V. (2019). Incorporating the environmental dimension into the balanced scorecard. Meditari Accountancy Research, 27(4), 652–674. https://doi.org/10.1108/MEDAR-06-2018-0360

Kim, Y., & Choi, J. (2016). The role of a large competitor’s entry and level of innovativeness in consumer adoption of new products. Asia Pacific Journal of Innovation and Entrepreneurship, 10(1), 168–182. https://doi.org/10.1108/APJIE-12-2016-004

Kiyabo, K., & Isaga, N. (2019). Strategic entrepreneurship, competitive advantage, and SMEs’ performance in the welding industry in Tanzania. Journal of Global Entrepreneurship Research, 9(1), 62. https://doi.org/10.1186/s40497-019-0188-9

Kohli, A. K., & Jaworski, B. J. (1999). Market orientation: The construct, research propositions, and managerial implications. In Developing a Market Orientation (Vol. 54, Issue 2, pp. 7–44). SAGE Publications, Inc. https://doi.org/10.4135/9781452231426.n2

Kwok, F., Sharma, P., Gaur, S. S., & Ueno, A. (2019). Interactive effects of information exchange, relationship capital and environmental uncertainty on international joint venture (IJV) performance: An emerging markets perspective. International Business Review, 28(5), 101481. https://doi.org/10.1016/j.ibusrev.2018.02.008

Latan, H., Chiappetta Jabbour, C. J., Lopes de Sousa Jabbour, A. B., Wamba, S. F., & Shahbaz, M. (2018). Effects of environmental strategy, environmental uncertainty and top management’s commitment on corporate environmental performance: The role of environmental management accounting. Journal of Cleaner Production, 180, 297–306. https://doi.org/10.1016/j.jclepro.2018.01.106

Man, T. W. Y., Lau, T., & Chan, K. . (2002). The competitiveness of small and medium enterprises. Journal of Business Venturing, 17(2), 123–142. https://doi.org/10.1016/S0883-9026(00)00058-6

Merschmann, U., & Thonemann, U. W. (2011). Supply chain flexibility, uncertainty and firm performance: An empirical analysis of German manufacturing firms. International Journal of Production Economics, 130(1), 43–53. https://doi.org/10.1016/j.ijpe.2010.10.013

Miller, K. D. (1993). Industry and country effects on managers’ perceptions of environmental uncertainties. Journal of International Business Studies, 24(4), 693–714.

Mohammad, H. I. (2019). Mediating effect of organizational learning and moderating role of environmental dynamism on the relationship between strategic change and firm performance. Journal of Strategy and Management, 12(2), 275–297. https://doi.org/10.1108/JSMA-07-2018-0064

Najib, M., Kiminami, A., & Yagi, H. (2011). Competitiveness of Indonesian small and medium food processing industry: Does the location matter? International Journal of Business and Management, 6(9), 57–67. https://doi.org/10.5539/ijbm.v6n9p57

Nelson, R. (1992). Recent writings on competitiveness: Boxing the compass. California Management Review, 34(2), 127–137. https://doi.org/10.2307/41166697

Porter, M. E., & Kramer, M. R. (2007). Strategy and society: The link between competitive advantage and corporate social responsibility. Strategic Direction, 23(5), 78–92. https://doi.org/10.1108/sd.2007.05623ead.006

Porter, M. E., & Schwab, K. (2008). The global competitiveness report 2008 - 2009. In World Economic Forum.

Potjanajaruwit, P. (2018). Competitive advantage effects on firm performance: A Case study of startups in Thailand. Journal of International Studies, 11(3), 104–111. https://doi.org/10.14254/2071-8330.2018/11-3/9

Poulis, A., & Wisker, Z. (2016). Modeling employee-based brand equity (EBBE) and perceived environmental uncertainty (PEU) on a firm’s performance. Journal of Product & Brand Management, 25(5), 490–503. https://doi.org/10.1108/JPBM-04-2015-0852

Raharja, S. J. (2017). Strategic analysis of the regional water company in Cirebon City West Java, Indonesia. Review of Integrative Business and Economics Research, 6(2), 408–413.

Rua, O., França, A., & Fernández Ortiz, R. (2018). Key drivers of SMEs export performance: The mediating effect of competitive advantage. Journal of Knowledge Management, 22(2), 257–279. https://doi.org/10.1108/JKM-07-2017-0267

Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., & Saaeidi, S. A. (2015). How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of Business Research, 68(2), 341–350. https://doi.org/10.1016/j.jbusres.2014.06.024

Salem, M. A. (2019). Structural equation modelling of the impact of environmental capabilities on competitiveness. International Journal of Productivity and Performance Management, 68(1), 127–147. https://doi.org/10.1108/IJPPM-11-2016-0259

Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach (7th ed.). John Wiley & Sons, Inc.

Sigalas, C., & Papadakis, V. M. (2018). Empirical investigation of relationship patterns between competitive advantage and superior performance. Journal of Strategy and Management, 11(1), 81–111. https://doi.org/10.1108/JSMA-01-2017-0010

Solimun, Nurjannah, Amaliana, L., & Fernandes, A. A. R. (2019). Metode statistika multivariat generalized structured component analysis (GSCA): Pemodelan persamaan struktural (SEM). In UB Press (Ed.), UB Press (1st ed.). UB Press.

Tenenhaus, M. (2008). Component-based structural equation modelling. Total Quality Management & Business Excellence, 19(7–8), 871–886. https://doi.org/10.1080/14783360802159543

Ting, H.-F. (2012). The moderating role of environmental dynamism on the influence of innovation strategy and firm performance. International Journal of Innovation, Management and Technology, 3(5), 13–16. https://doi.org/10.7763/IJIMT.2012.V3.288

Tresna, P. W., & Raharja, S. J. (2019). Effect of entrepreneurial orientation, product innovation and competitive advantage on business performance in creative industries in Bandung City, Indonesia. Review of Integrative Business and Economics Research, 8(3), 51–60.

Widyaningdyah, A. U., & Aryani, Y. A. (2016). Perceived environmental uncertainty, performance measurement systems, and competitive advantage. Review of Integrative Business & Economics Research, 5(3), 117–134.

Wong, C. Y., Boon-itt, S., & Wong, C. W. Y. (2011). The contingency effects of environmental uncertainty on the relationship between supply chain integration and operational performance. Journal of Operations Management, 29(6), 604–615. https://doi.org/10.1016/j.jom.2011.01.003

Yap, C. S., Rashid, M. Z. A., & Sapuan, D. A. (2013). Perceived environmental uncertainty and competitive intelligence practices. VINE, 43(4), 462–481. https://doi.org/10.1108/VINE-11-2011-0058

Yuniarta, G. A., Utama, M. S., Saskara, I. A. N., & Yasa, I. G. W. M. (2020). The effect of contextual factors, government, corporate social responsibility and competency on business development. Management Science Letters, 10(1), 121–132. https://doi.org/10.5267/j.msl.2019.8.010