Competitive advantage of digital freight forwarding company and its impact on operational performance (case study on Andalin.сom)

The development of logistics that increases every year makes the emergence of Freight Forwarder service companies. The number of competitors makes Freight Forwarder companies have to be smart in creating various ways to keep customers interested and loyal in this 4.0 industrial era. Competitive advantage, innovation actions, market orientation and measurement of the company’s operational performance are solutions that can be used to anticipate the competition. One of them is the idea of developing Freight Forwarders to be more systematic by digitizing every aspect offered. The purpose of this study is to determine how much influence the variables Product Innovation (X1), Market Orientation (X2), Process Innovation (X3) have on Competitive Advantage (Z) in their impact on the Company’s Operational Performance (Y) using the Structural Equation Method (SEM). The results of the study shows that there are positive and significant results between product innovation and market orientation on competitive advantage; process innovation, market orientation, and competitive advantage on company’s operational performance; competitive advantage mediates the relationship between product innovation on the company’s operational performance; competitive advantage mediates the relationship between market orientation on the company’s operational performance and as well as the 3 rejected hypotheses, namely Process Innovation has a positive but not significant effect on Competitive Advantage, Product Innovation has a negative effect on the Company’s Operational Performance and Competitive Advantage does not mediate the relationship between Process innovation and Company’s Operational Performance.