Sustainable Innovation and Digital Transformation as Drivers of Competitive Advantage: Evidence from an Emerging Market Firm
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Abstract
This study examines how sustainable innovation and digital transformation contribute to corporate competitive advantage within an emerging market context. A qualitative case study approach was applied to PT. Mayora Indah Tbk., a leading Indonesian FMCG company. Data were collected through semi-structured interviews with top and middle management, supported by internal company documents and secondary industry sources. The analysis employed thematic coding using NVivo 14, combined with descriptive analysis and data triangulation to ensure validity. The findings indicate that sustainable innovation is embedded in product development, operational efficiency, and organizational strategy, while digital transformation enhances decision-making, production processes, and market responsiveness. Six key themes emerged, including innovation as a strategic driver, responsiveness to consumer preferences, digital transformation, cultural challenges, external collaboration, and performance outcomes. The results show that innovation leads to measurable improvements, including increased sales and operational efficiency, but its implementation is constrained by organizational resistance and challenges in integrating technology. The study concludes that sustainable innovation and digital transformation operate as complementary capabilities that jointly strengthen long-term competitiveness. Effective implementation requires alignment between strategic vision, technological adoption, organizational culture, and external partnerships. These findings make theoretical contributions by integrating innovation and digitalization within a unified framework and offer practical insights for firms to enhance competitiveness in dynamic, resource-constrained environments.
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