Creating a Sustainable Competitive Advantage: The Roles of Technological Innovation, Knowledge Management, and Organizational Agility

Abstract

ABSTRACT In an era of uncertainty and rapid technological change, the ability of organizations to adapt quickly and effectively becomes a primary imperative. This research meticulously examines the contribution of organizational agility as a mediating variable in the relationship between technological innovation and knowledge management regarding sustainable competitive advantage within the context of infrastructure and technology companies listed on the Indonesia Stock Exchange. The structural equation model partial least square (SEM‐PLS) method used WarpPLS software. It was found that technological innovation and knowledge management had a significant positive effect on organizational agility and sustainable competitive advantage. Moreover, organizational agility significantly and positively influences sustainable competitive advantage. In testing for indirect effects, it is shown that organizational agility is a significant positive mediating variable that bridges the relationship between technological innovation and knowledge management on sustainable competitive advantage. These findings guide strategic decision‐making, offering a nuanced understanding of organizational agility that underpins success in a rapidly evolving technological landscape.