Technological Development and Competitive Advantage: Driving Sustainable Performance in Culinary Startups.


International Research Journal of Economics and Management Studies
© 2025 by IRJEMS
Volume 4  Issue 4
Year of Publication : 2025
Authors : Fendy Cuandra, Yolanda Masnita, Husna Leila Yusran, Lily Purwianti
irjems doi : 10.56472/25835238/IRJEMS-V4I4P126

Citation:

Fendy Cuandra, Yolanda Masnita, Husna Leila Yusran, Lily Purwianti. "Technological Development and Competitive Advantage: Driving Sustainable Performance in Culinary Startups." International Research Journal of Economics and Management Studies, Vol. 4, No. 4, pp. 260-271, 2025.

Abstract:

Technological advancements have intensified market competition, particularly in the culinary startup sector, where in Indonesia only 90% of startups are able to survive. This situation highlights the need for efforts to maintain and enhance sustainable performance, which can be influenced by technological capabilities and the competitive advantages possessed by the company. This study aims to examine the direct and indirect effects of Technological Capability (TC) on Sustainable Performance (SP), with Sustainable Competitive Advantage (SCA) as a mediating variable, and also investigates the moderating role of SCA in the relationship between TC and SP. The research uses Structural Equation Modeling-Partial Least Squares (SEM-PLS) and is based on data from 220 culinary startups in Batam City. The findings reveal that both TC and SCA have a direct effect on SP, and that SCA mediates the relationship between TC and SP. However, no moderating effect of SCA was found. This study is limited to culinary startups in Batam and focuses solely on the influence of TC and SCA on SP. Future research is encouraged to expand the scope to other regions such as the Riau Islands or Indonesia more broadly, and to consider additional variables such as innovation capability and absorptive capacity for a more comprehensive understanding of the factors influencing sustainable performance.

References:

[1] Abduh, M., Alawiyah, T., Apriansyah, G., Sirodj, R. A., & Afgani, M. W. (2022). Survey Design: Cross Sectional dalam Penelitian Kualitatif. Jurnal Pendidikan Sains Dan Komputer, 3(01), 31–39. https://doi.org/10.47709/jpsk.v3i01.1955
[2] Ahmad, N., Lazim, H. M., Shamsuddin, A., Wahab, E., & Seman, N. A. A. (2019). Capability and manufacturing performance. International Journal of Recent Technology and Engineering, 7(6), 432–438.
[3] Al-Abbadi, L. H., & Abu Rumman, A. R. (2023). Sustainable performance based on entrepreneurship, innovation, and green HRM in e-Business Firms. Cogent Business and Management, 10(1). https://doi.org/10.1080/23311975.2023.2189998
[4] Amesho, K. T. T., Edoun, E. I., Naidoo, V., & Pooe, S. (2022). Sustainable competitive advantage through technology and innovation systems in the local government authorities. Africa’s Public Service Delivery & Performance Review, 10(1). https://doi.org/10.4102/apsdpr.v10i1.573
[5] Anggadwita, G., Putri, R. Y., & Martini, E. (2021). Technology Capabilities and Innovation Ambidexterity Impact on MSME Business Resilience during Covid-19 Pandemic in Bandar Lampung. Proceedings of the Second Asia Pacific International Conference on Industrial Engineering and Operations Management, 1267–1277.
[6] Anggani, P. D. (2022). 5 Top Bisnis F&B Lokal yang Dapatkan Pendanaan Hingga 355M! https://www.goodnewsfromindonesia.id/2022/11/29/bisnis-kuliner-fnb-lokal-dana355milyar
[7] Autio, E., Chiyachantana, C. N., Castillejos-Petalcorin, C., Fu, K., Habaradas, R. B., Jinjarak, Y., Muftiadi, A., Park, D., Prasarnphanich, P., Quyên, P. M., & Smit, W. (2024). Adoption of Digital Technologies, Business Model Innovation, and Financial and Sustainability Performance in Start-Up Firms. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4901024
[8] Azura, M. (2023). 25 Daftar Startup Raksasa Indonesia yang Tutup dan PHK di 2023. https://www.inilah.com/ini-daftar-lengkap-startup-yang-lakukan-phk-hingga-2023
[9] Bahar, D. (2024). Mengapa Banyak Startup Gagal di Tahun Pertama? https://dilabahar.com/mengapa-banyak-startup-gagal-di-tahun-pertama/
[10] Çağlıyan, V., Attar, M., & Abdul-Kareem, A. (2022). Assessing the mediating effect of sustainable competitive advantage on the relationship between organisational innovativeness and firm performance. Competitiveness Review: An International Business Journal, 32(4), 618–639. https://doi.org/10.1108/CR-10-2020-0129
[11] Çelik, D., & Uzunçarşılı, Ü. (2023). Is the Effect of Organizational Ambidexterity and Technological Innovation Capability on Firm Performance Mediated by Competitive Advantage? An Empirical Research on Turkish Manufacturing and Service Industries. SAGE Open, 13(4), 1–21. https://doi.org/10.1177/21582440231206367
[12] Cuandra, F., & Candy, C. (2024). Strategies and Innovations for Enhancing Sustainable Performance in SMEs During The 4.0 Digital Business Era. Jurnal Organisasi Dan Manajemen, 20(1), 1–16. https://doi.org/10.33830/jom.v20i1.6449.2024
[13] Darmawan, A., Hadi, H., & Sri Wahyudi, A. (2023). The Influence of Technological Capability, Social Capital, and Entrepreneurial Orientation On Firm Performance Through Absorptive Capacity In Food and Beverage Packaging Industry Companies. Eduvest - Journal of Universal Studies, 3(2), 335–353. https://doi.org/10.36418/eduvest.v3i2.744
[14] Djiu, N., Kong, N. V., & Saputra, D. (2024). The role of competitive advantage in mediating technological capabilities and social media usage on SMEs export performance. Procedia Computer Science, 234(2023), 756–763. https://doi.org/10.1016/j.procs.2024.03.062
[15] Elgarhy, S. D., & Abou-Shouk, M. (2023). Effects of entrepreneurial orientation, marketing, and innovation capabilities, on market performance: the mediating effect of sustainable competitive advantage. International Journal of Contemporary Hospitality Management, 35(6), 1986–2004. https://doi.org/10.1108/IJCHM-04-2022-0508
[16] Fahmi, M. (2024). Startup F&B Indonesia semakin tangguh dengan ketahanan ekonomi Indonesia. Insights. https://east.vc/id/berita/insights-id/fnb-startup-indonesia/#:~:text=Saat ini%2C dengan semakin banyaknya,miliar untuk pengantaran makanan online
[17] Fegada, A., & Veres, Z. (2024). The Moderating Role of Technological Capabilities in the Relationship between Entrepreneurial Marketing and Firm Performance A Qualitative Approach. European Scientific Journal ESJ, 27(15), 125–158. https://doi.org/10.19044/esipreprint.3.2024.p125
[18] Feng, B., Sun, K., Chen, M., & Gao, T. (2020). The impact of core technological capabilities of high-tech industry on sustainable competitive advantage. Sustainability (Switzerland), 12(7). https://doi.org/10.3390/su12072980
[19] Gazi, M. A. I., Rahman, M. K. H., Masud, A. Al, Amin, M. Bin, Chaity, N. S., Senathirajah, A. R. bin S., & Abdullah, M. (2024). AI Capability and Sustainable Performance: Unveiling the Mediating Effects of Organizational Creativity and Green Innovation with Knowledge Sharing Culture as a Moderator. Sustainability, 16(17), 7466. https://doi.org/10.3390/su16177466
[20] Ghozali, I. (2018). Aplikasi Analisis Multivariate Dengan Pogram IBM SPSS (9th ed.). Badan Penerbit Universitas Diponegoro.
[21] Hair, J., Black, W., Babin, B., & Anderson, R. (2010). Multivariate Data Analysis: A Global Perspective.
[22] Hair, J. F., Ringle, C. M., & Sarstedt, M. (2017). Partial Least Squares Structural Equation Modeling (Issue September). https://doi.org/10.1007/978-3-319-05542-8
[23] Haseeb, M., Hussain, H. I., Kot, S., Androniceanu, A., & Jermsittiparsert, K. (2019). Role of social and technological challenges in achieving a sustainable competitive advantage and sustainable business performance. Sustainability (Switzerland), 11(14). https://doi.org/10.3390/su11143811
[24] Hendi, Basri, Y. Z., & Arafah, W. (2022). Analysis of Improving Competitive Advantage for Startup Business in Indonesia. International Journal of Economics, Business and Management Research, 06(02), 223–231. https://doi.org/10.51505/ijebmr.2022.6216
[25] Hendrayati, H. (2025). Mengapa Banyak Startup di Indonesia Tutup dan tak Bisa Bersaing? https://bandungbergerak.id/article/detail/1598641/mengapa-banyak-startup-di-indonesia-tutup-dan-tak-bisa-bersaing#:~:text=Terakhir%2C adalah kurangnya diferensiasi
[26] Hermawan, A., & Yusran, H. L. (2017). Penelitian Bisnis Pendekatan Kuantitatif. Kencana. https://books.google.co.id/books?id=9hVNDwAAQBAJ
[27] Husna, A., Alfatiha, R. A., Chan, A., & Muftiadi, A. (2024). The effect of partnership and information and communication technology (ICT) capability on competitive advantage through entrepreneurial marketing: a study on culinary sector SMEs in Batam City. Jurnal Perspektif Pembiayaan Dan Pembangunan Daerah, 12(2), 205–220. https://doi.org/10.22437/ppd.v12i2.32238
[28] Hussain, I., Mu, S., Mohiuddin, M., Danish, R. Q., & Sair, S. A. (2020). Effects of sustainable brand equity and marketing innovation on market performance in hospitality industry: Mediating effects of sustainable competitive advantage. Sustainability (Switzerland), 12(7), 1–19. https://doi.org/10.3390/su12072939
[29] Indriantoro, N., & Supomo, B. (2011). Metodologi Penelitian Bisnis Untuk Akuntansi dan Manajemen. BPFE.
[30] Jatmiko, L. D. (2024). RI Tertinggal dari Australia hingga India soal Jumlah Startup Desember 2024. Bisnis Tekno. https://teknologi.bisnis.com/read/20241226/266/1826984/ri-tertinggal-dari-australia-hingga-india-soal-jumlah-startup-desember-2024
[31] Jörg Henseler, M. S. (2013). Goodness-of-Fit Indices for Partial Least Squares Path Modeling. April. https://doi.org/10.1007/s00180-012-0317-1
[32] Kemenparekraf. (2021). FoodStartup Indonesia untuk Percepatan Pertumbuhan Ekonomi Kreatif. https://www.kemenparekraf.go.id/ragam-ekonomi-kreatif/FoodStartup-Indonesia-untuk-Percepatan-Pertumbuhan-Ekonomi-Kreatif
[33] KEMNAKER RI. (2024). Proyeksi Kebutuhan Tenaga Kerja Menurut Sektor dan Jabatan Tahun 2025-2029.
[34] Kim, J. H., Seok, B. I., Choi, H. J., Jung, S. H., & Yu, J. P. (2020). Sustainable management activities: A study on the relations between technology commercialization capabilities, sustainable competitive advantage, and business performance. Sustainability (Switzerland), 12(19), 1–31. https://doi.org/10.3390/su12197913
[35] Kirzner, I. M. (1973). Competition and Entrepreneurship. New York University (NYU) - Department of Economics. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1496174
[36] Kline, R. B. (2016). Principles and practice of structural equation modeling, 4th ed. In Principles and practice of structural equation modeling, 4th ed. Guilford Press.
[37] Lestari, E. R., & Ardianti, F. L. (2019). Technological capability and business success: The mediating role of innovation. IOP Conference Series: Earth and Environmental Science, 250(1), 0–7. https://doi.org/10.1088/1755-1315/250/1/012039
[38] Lestari, S. D., Leon, F. M., Widyastuti, S., Brabo, N. A., & Putra, A. H. P. K. (2020). Antecedents and consequences of innovation and business strategy on performance and competitive advantage of SMEs. Journal of Asian Finance, Economics and Business, 7(6), 365–378. https://doi.org/10.13106/JAFEB.2020.VOL7.NO6.365
[39] Liu, X., & Yang, S. (2021). The Influence of Core Technology Capability of High-Tech Industry on Sustainable Competitive Advantage. Discrete Dynamics in Nature and Society, 2021. https://doi.org/10.1155/2021/2225604
[40] Lu, H., & Shaharudin, M. S. (2024). Role of digital transformation for sustainable competitive advantage of SMEs: a systematic literature review. Cogent Business and Management, 11(1). https://doi.org/10.1080/23311975.2024.2419489
[41] Madhavan, M., Sharafuddin, M. A., & Chaichana, T. (2022). Impact of Business Model Innovation on Sustainable Performance of Processed Marine Food Product SMEs in Thailand—A PLS-SEM Approach. Sustainability (Switzerland), 14(15). https://doi.org/10.3390/su14159673
[42] Marietha, A. R. (2024). Indonesia “Bersinar” di Laju Pertumbuhan Startup: Peringkat Satu Se-Asia Tenggara. Goodstat. https://goodstats.id/article/indonesia-bersinar-di-laju-pertumbuhan-startup-peringkat-1-se-asia-tenggara-nAqzC
[43] Md Hassan, S. A., & Ibrahim, A. (2022). Firm’s Technological Capabilities towards Technology Transfer Performance in Malaysian Manufacturing Companies: The Antecedents That Lead to Successful Development of Firm’s Technological Capabilities. International Journal of Industrial Management, 14(1), 491–505. https://doi.org/10.15282/ijim.14.1.2022.7060
[44] Medeiros Vila Nova, S. da R., & Bitencourt, C. C. (2020). Technology Capability and Information Sharing: Effects on the Sustainable Environmental Performance of Industrial Companies. Brazilian Journal of Management / Revista de Administração Da UFSM, 13, 1175–1191. https://search.ebscohost.com/login.aspx?direct=true&AuthType=sso&db=asn&AN=150181278&site=ehost-live&scope=site&custid=s6390179%0A10.5902/1983465944272
[45] Nurjanah, L., Siagian, Y. M., Yusran, H. L., & Ariyanto, H. H. (2023). The Analysis of Dynamic Capabilities and Sustainable Competitiveness on Sustainable Performance In Indonesia Private Higher Education. Asian Journal of Management Entrepreneurship and Social Science, 03(03), 2023. https://ajmesc.com/index.php/ajmesc
[46] Nwodo, S. I., Dike, O., & Onyeokoro, S. C. (2024). Impact of Technological Capability on Competitive Advantage of Selected Industrial Firms in South-East, Nigeria. International Journal of Research and Innovation in Social Science, VIII(VI), 1314–1326. https://doi.org/10.47772/IJRISS.2024.806097
[47] Owuori, P. J., Ngala, M., & Obwatho, S. (2020). Technological Capability and Sustainability. Journal of Human Resource & Leadership, 4(3), 1–16.
[48] Paramita, D., Vandayuli Riorini, S., & Khodijah, M. (2023). Pengaruh Product Innovation Capability, Market Intelligence Capability, Price Capability Terhadap Startup International Performance dengan Competitive Advantage sebagai Mediator pada Startup di DKI Jakarta. Jurnal Multidisiplin Indonesia, 2(2), 255–267. https://doi.org/10.58344/jmi.v2i2.173
[49] Pumiviset, W., & Suttipun, M. (2024). Corporate Social Responsibility and SMEs’ Performance: Mediating Role of Sustainable Competitive Advantage. ABAC Journal, 44(4). https://doi.org/10.59865/abacj.2024.47
[50] Purwianti, L. (2021). Peranan Mediasi Inovasi dan Absorptive Capacity dalam Meningkatkan Kinerja Hotel Selama Pandemi COVID 19. 158, 171–192. https://doi.org/10.24034/j25485024.y2023.v7.i2.5251
[51] Quaye, D., & Mensah, I. (2019). Marketing innovation and sustainable competitive advantage of manufacturing SMEs in Ghana. Management Decision, 57(7), 1535–1553. https://doi.org/10.1108/MD-08-2017-0784
[52] Rahadi, D. R., & Farid, M. (2021). Analisis Variabel Moderating. In CV. Lentera Ilmu Mandiri (Vol. 7, Issue 2).
[53] Rahim, F. B. T., & Zainuddin, Y. Bin. (2019). The impact of technological innovation capabilities on competitive advantage and firm performance in the automotive industry in Malaysia. 020030. https://doi.org/10.1063/1.5085973
[54] Sabrina. (2024). Tantangan adaptasi teknologi dalam bisnis kuliner digital. Carakus. https://carakus.com/tantangan-adaptasi-teknologi-dalam-bisnis-kuliner-digital/
[55] Salisu, Y., & Abu Bakar, L. J. (2020). Technological capability, relational capability and firms’ performance: The role of learning capability. Revista de Gestao, 27(1), 79–99. https://doi.org/10.1108/REGE-03-2019-0040
[56] Saputra, K. A. K., Subroto, B., Rahman, A. F., & Saraswati, E. (2023). Mediation Role of Environmental Management Accounting on the Effect of Green Competitive Advantage on Sustainable Performance. Journal of Sustainability Science and Management, 18(2), 103–115. https://doi.org/10.46754/jssm.2023.02.008
[57] Satar, A., Musadieq, M. Al, Hutahayan, B., & Solimun, S. (2025). Creating a Sustainable Competitive Advantage: The Roles of Technological Innovation, Knowledge Management, and Organizational Agility. Global Business and Organizational Excellence, 44(3), 11–23. https://doi.org/10.1002/joe.22280
[58] Setyawati, A., Seseli, E. M. I., Kusuma, R. C. S. D., & Setyawati, C. Y. (2023). Sustainable Competitive Advantage Model of Umkm: the Existence of Technological Innovation and Market Orientation As a Predictor. SULTANIST: Jurnal Manajemen Dan Keuangan, 11(1), 70–80. https://doi.org/10.37403/sultanist.v11i1.495
[59] Shiba, N. (2024). Sejarah Singkat Perkembangan Startup di Indonesia dan Faktor Pendukungnya. IDS Digital College. https://ids.ac.id/sejarah-singkat-perkembangan-startup-di-indonesia/
[60] Siahaan, M. (2024). Startups in Indonesia - statistics & facts. Statistika. https://www.statista.com/topics/10216/startups-in-indonesia/#topicOverview
[61] Sofia, H. (2020). Kemenparekraf dorong wirausaha kuliner jadi “food startup.” ANTARA. https://www.antaranews.com/berita/1642154/kemenparekraf-dorong-wirausaha-kuliner-jadi-food-startup
[62] Sushandoyo, D., Kencanasari, R. A. M., Prasetio, E. A., & Matsuura, Y. (2022). The Influences of Technological Capability and Market Orientation Toward Business Model Innovation of Digital Startups. International Journal of Innovation Management, 26(02). https://doi.org/10.1142/S1363919622500189
[63] Tia, R. (2022). Ada Apa dengan Startup? Netray. https://analysis.netray.id/ada-apa-dengan-startup/
[64] Tong, T., Iqbal, K., & Rahman, A. A. (2022). Core Technological Competence and Competitive Advantage: A Study on Chinese High-Tech SMEs. Frontiers in Psychology, 13(July), 1–12. https://doi.org/10.3389/fpsyg.2022.959448
[65] Tufan, C., & Mert, I. S. (2023). The sequential effect of absorptive capacity, strategic agility, and sustainable competitive advantage on sustainable business performance of SMEs. Environmental Science and Pollution Research, 30(19), 55958–55973. https://doi.org/10.1007/s11356-023-26207-x
[66] Utomo, H., Pujiastuti, E., & Rustamaji, H. (2020). Pemberdayaan Eekonomi Masyarakat Melalui Start Up Bisnis Kuliner di Desa Srimartani, Piyungan, Bantul, Diy. At-Tamkin: Jurnal Pengabdian Kepada Masyarakat, 2, 1–12. https://doi.org/10.33379/attamkin.v2i2.517
[67] Valdez-Juárez, L. E., & Castillo-Vergara, M. (2021). Technological capabilities, open innovation, and eco-innovation: Dynamic capabilities to increase corporate performance of smes. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 1–19. https://doi.org/10.3390/joitmc7010008
[68] Venny, & Febriyantoro, M. T. (2020). Sustainable entrepreneurial orientation dan keunggulan bersaing terhadap kinerja bisnis: studi pada umkm di kota batam. DeReMa (Development of Research Management): Jurnal Manajemen, 15(2), 257–281. 10.19166/derema.v15i2.1952
[69] Winosa, Y. (2019). Ini Alasan 90 Persen Startup di Indonesia Gagal. Warta Ekonomi. https://wartaekonomi.co.id/read215393/ini-alasan-90-persen-startup-di-indonesia-gagal
[70] Yusuf, M., Surya, B., Menne, F., Ruslan, M., Suriani, S., & Iskandar, I. (2023). Business Agility and Competitive Advantage of SMEs in Makassar City, Indonesia. Sustainability (Switzerland), 15(1). https://doi.org/10.3390/su15010627

Keywords:

Culinary Startup, Sustainable Competitive Advantage, Sustainable Performance, Technological Capability.