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SCIENCE ARTICLE
Strategic capabilities in management system on competitive
advantage and its impact on fisheries small and medium
enterprises’ (SMEs) performance in Indonesia
1
Economics and Management, Shanghai Ocean University, China
2
Accounting, Semarang State Polytechnic, Indonesia
3
Management Education, Islamic University of KH. Achmad Muzakki Syah, Indonesia
4
Management Education, Al falah Assunniyah University, Indonesia
Submission date: 2026-06-09
Final revision date: 2026-07-28
Acceptance date: 2026-08-20
Online publication date: 2026-10-02
Publication date: 2026-09-25
Management 2026;(2):248-273
KEYWORDS
digital marketing innovationnetworking capabilitysupply chain management systemcompetitive advantageSMEs fisheries performance
JEL CLASSIFICATION CODES
O32
M14
M20
M51
O12
O31
TOPICS
ABSTRACT
Research background and purpose:
The fisheries SME sector in Indonesia, particularly on the island of Java is currently facing critical challenges stemming from limited digital adoption, weak networking capabilities, and inefficient supply chain practices. The current research focuses on understanding the impact of digital marketing innovation, network capabilities, and supply chain management systems on the competitive advantage and performance of SMEs fisheries sector. The aims of this research to analyze the effect of strategic capabilities in SMEs performance
Design/methodology/approach:
A quantitative research design was employed using structured questionnaires distributed to 398 fishery SMEs across the island of Java, Indonesia. The study sample utilized a stratified random sampling method to ensure proportional representation across all provinces and business categories. Data were analyzed using SEM-PLS.
Findings:
The research results that networking capability exerts the strongest influence on competitive advantage (β = 0.42; p < 0.001), followed by supply chain management systems (β = 0.31; p < 0.01), while digital marketing innovation demonstrates a weaker yet significant influence (β = 0.18; p < 0.05). Competitive advantage significantly predicts SMEs performance (β = 0.47; p < 0.001). Furthermore, regarding mediation, the findings confirm that competitive advantage partially mediates all three of these relationships. The model demonstrates substantial explanatory power, with an R² value of 0.61 for competitive advantage and R² = 0.73 for SMEs performance.
Value added and limitations:
This study has several limitations. First, the sample of 398 SMEs may not be representative of the entire fisheries sector in Indonesia. The focus on Java limits the generalizability of the findings to other regions.
The fisheries SME sector in Indonesia, particularly on the island of Java is currently facing critical challenges stemming from limited digital adoption, weak networking capabilities, and inefficient supply chain practices. The current research focuses on understanding the impact of digital marketing innovation, network capabilities, and supply chain management systems on the competitive advantage and performance of SMEs fisheries sector. The aims of this research to analyze the effect of strategic capabilities in SMEs performance
Design/methodology/approach:
A quantitative research design was employed using structured questionnaires distributed to 398 fishery SMEs across the island of Java, Indonesia. The study sample utilized a stratified random sampling method to ensure proportional representation across all provinces and business categories. Data were analyzed using SEM-PLS.
Findings:
The research results that networking capability exerts the strongest influence on competitive advantage (β = 0.42; p < 0.001), followed by supply chain management systems (β = 0.31; p < 0.01), while digital marketing innovation demonstrates a weaker yet significant influence (β = 0.18; p < 0.05). Competitive advantage significantly predicts SMEs performance (β = 0.47; p < 0.001). Furthermore, regarding mediation, the findings confirm that competitive advantage partially mediates all three of these relationships. The model demonstrates substantial explanatory power, with an R² value of 0.61 for competitive advantage and R² = 0.73 for SMEs performance.
Value added and limitations:
This study has several limitations. First, the sample of 398 SMEs may not be representative of the entire fisheries sector in Indonesia. The focus on Java limits the generalizability of the findings to other regions.
AUTHORS' CONTRIBUTIONS
D.R.: article conception, theoretical content of the article, research methods applied, conducting the research, data collection, analysis and interpretation of results, draft manuscript preparation. L.Ch.: article conception, research methods applied, conducting the research. I.R.: analysis and interpretation of results. F.W.: data collection, draft manuscript preparation. M.I.B.: data collection.
ADDITIONAL INFORMATION
During the research process to writing the article, the authors did not use AI.
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