Sustaining Infrastructure Firm Performance Through Strategic Orientation: Competitive Advantage in Dynamic Environments

Abstract

Indonesia’s pursuit of the Indonesia Emas 2045 vision emphasizes sustainable economic growth and equitable prosperity, with strategic initiatives such as establishing a new national capital and enhancing infrastructure to bolster economic competitiveness. This study examines the relationship between Strategic Orientation and Sustainable Firm Performance, with Firm Competitive Advantage as a mediator and Dynamic Environment as a moderator. Using data collected from 474 private companies affiliated with the Indonesian Chamber of Commerce and Industry between September and December 2024, and analyzed via Structural Equation Modeling with SmartPLS4, the findings demonstrate that Strategic Orientation significantly enhances Firm Competitive Advantage, which partially mediates its impact on Sustainable Firm Performance. Moreover, Dynamic Environment amplifies the Strategic Orientation–Firm Competitive Advantage relationship. The study contributes to the Resource-Based View and Dynamic Capability Theory, providing actionable insights for private firms to enhance strategic adaptability and for policymakers to foster private sector sustainability amidst market dynamics.