J
Journal of Economics, Management, Entrepreneurship, and Business Abnus Publisher

Sustainable Competitive Advantage through SDGs, Value Creation, and New Product Development in Bekasi Manufacturing Sector

2025-05-26
Published
31-46
Pages
OPEN
Access
AS
Ahmad Sopyan
Dr. Soetomo University, Indonesia
SS
Sukesi Sukesi
Dr. Soetomo University, Indonesia
SS
Suyanto Suyanto
Dr. Soetomo University, Indonesia
AA
Aminullah Assagaf
Dr. Soetomo University, Indonesia
EY
Eddy Yunus
Dr. Soetomo University, Indonesia
Abstract

Purpose: This study examines how Value Creation and New Product Development (NPD) influence Competitive Advantage, and whether Sustainable Development Goals (SDGs) mediate these relationships in the manufacturing sector.

Research Methodology: Employing a quantitative descriptive design, data were collected from 272 respondents across Bekasi’s manufacturing firms and analyzed using PLS-SEM via SmartPLS.

Results: The findings reveal that both Value Creation (β = 0.260, t = 2.297, p = 0.022, f² = 0.148) and NPD (β = 0.455, t = 4.949, p < 0.001, f² = 0.458) significantly and positively impact Competitive Advantage, with NPD exerting a stronger effect. Engagement with SDGs also positively affects Competitive Advantage (β = 0.158, t = 2.258, p = 0.024), albeit to a lesser extent.

Conclusions: The direct relationships between Value Creation or NPD to SDG performance were not statistically significant, and SDGs did not mediate their effects on Competitive Advantage. Firms should fortify value creation and NPD capabilities and strategically integrate sustainability to amplify their competitive impact. This study is original in detailing the non-significant mediation of SDGs, challenging the common assumption that sustainability goals automatically follow value or innovation investments.

Limitations: This study is limited by its focus on manufacturing firms in Bekasi, Indonesia, which may not fully represent other regions. The use of self-reported data may also introduce biases, and the model does not explore potential mediating or moderating variables. Future research could address these limitations by expanding the geographic scope and considering additional factors such as leadership styles and organizational culture.

Contributions: This research contributes to the theory by confirming innovation and stakeholder-centered value creation as the primary drivers of competitive positioning while highlighting that SDG alignment supports—but does not transmit—the benefits of operational and innovation efforts.

Competitive Advantage Manufacturing New Product Development SDGs Value Creation
How to Cite
Sopyan, A., Sukesi, S., Suyanto, S., Assagaf, A., & Yunus, E. . (2025). Sustainable Competitive Advantage through SDGs, Value Creation, and New Product Development in Bekasi Manufacturing Sector. Journal of Economics, Management, Entrepreneurship, and Business, 5(1), 31-46. https://doi.org/10.52909/jemeb.v5i1.225
Endnote/Zotero/Mendeley (RIS) BibTeX
References
  1. Abdullah, Y., & Rosliyati, A. (2020). The product market strategy, value creation, and competitive advantages as a determinant factor of marketing performance. International Journal of Supply Chain Management, 9(3), 13–17.
  2. Afeltra, G., Alerasoul, S. A., Minelli, E., Vecchio, Y., & Montalvo, C. (2022). Assessing the integrated impact of sustainable innovation on organisational performance: An empirical evidence from manufacturing firms. Journal of Small Business Strategy, 32(4), 143–166. https://doi.org/10.53703/001c.38515
  3. Ahmadi-Gh, Z., & Bello-Pintado, A. (2021). The effect of sustainability on new product development in manufacturing — internal and external practices. Administrative Sciences, 11(115). https://doi.org/10.3390/admsci11040115
  4. Ahmadi-Gh, Z., & Bello-Pintado, A. (2022). Why is manufacturing not more sustainable? The effects of different sustainability practices on sustainability outcomes and competitive advantage. Journal of Cleaner Production, 337, 130392. https://doi.org/10.1016/j.jclepro.2022.130392
  5. Appiah, D. (2025). Huawei aligns with SDGs to achieve differentiation and competitive advantage in the smartphone industry. https://doi.org/10.4135/9781071976517
  6. Baldassarre, B., Calabretta, G., Bocken, N. M. P., & Jaskiewicz, T. (2017). Bridging sustainable business model innovation and user-driven innovation: A process for sustainable value proposition design. Journal of Cleaner Production, 147, 175–186. https://doi.org/10.1016/j.jclepro.2017.01.081
  7. Bonfanti, A., Mion, G., Brunetti, F., & Vargas-Sánchez, A. (2023). The contribution of manufacturing companies to the achievement of sustainable development goals: An empirical analysis of the operationalization of sustainable business models. Business Strategy and the Environment, 32(4), 2490–2508. https://doi.org/10.1002/bse.3260
  8. Buranasiri, B., Lai, P., Woo, S., & Piboonrungroj, P. (2024). Impact of sustainable development goal orientation on supply chain collaboration and sustained competitive advantage: Evidence from the tea and coffee industry. The Asian Journal of Shipping and Logistics, 40(2), 83–88. https://doi.org/10.1016/j.ajsl.2024.01.004
  9. Chatti, N., Zaidi, A., Makhlouf, H., Lajnef, M., & Lakhal, L. (2025). Create sustainable competitive advantage and improve sustainable performance by implementing lean and green manufacturing practices: An empirical study on German manufacturing SMEs. International Journal of Productivity and Performance Management. https://doi.org/10.1108/IJPPM-05-2024-0298
  10. Dąbrowski, D. (2023). New product development from the perspective of creating a competitive advantage. Marketing of Scientific and Research Organizations, 49(3), 141–158.
  11. Dietl, H., Royer, S., & Stratmann, U. (2019). Value creation architectures and competitive advantage: Lessons from the European automobile industry. California Management Review, 51(3), 24–48. https://doi.org/10.2307/41166492
  12. Gupte, P., Shukla, G. P., Gupta, D., Panth, P., & Sai, R. R. P. (2025). Exploring sustainable supply chain management: Literature review and future research implications. Journal of The Institution of Engineers (India): Series C, 106(2), 651–663. https://doi.org/10.1007/s40032-025-01166-z
  13. Hariastuti, N. L. P., Pratikto, P., Santoso, P. B., & Tama, I. P. (2021). Analyzing the drivers of sustainable value creation, partnership strategies, and their impact on business competitive advantages of small & medium enterprises: A PLS-model. European Journal of Enterprise Technologies, 2(13), 110. https://doi.org/10.15587/1729-4061.2021.228864
  14. Hermundsdottir, F., & Aspelund, A. (2021). Sustainability innovations and firm competitiveness: A review. Journal of Cleaner Production, 280, 124715. https://doi.org/10.1016/j.jclepro.2020.124715
  15. Hermundsdottir, F., & Aspelund, A. (2022). Competitive sustainable manufacturing - sustainability strategies, environmental and social innovations, and their effects on firm performance. Journal of Cleaner Production, 370, 133474. https://doi.org/10.1016/j.jclepro.2022.133474
  16. Jagani, S., Deng, X., Hong, P. C., & Mashhadi Nejad, N. (2023). Adopting sustainability business models for value creation and delivery: An empirical investigation of manufacturing firms. Journal of Manufacturing Technology Management, 35(2), 360–382. https://doi.org/10.1108/JMTM-03-2023-0099
  17. Khanh, T. H. T., Rajagopal, P., Tram, N. T. T., & Bardai, B. B. (2025). Environmental management accounting as a mediator in the impact of innovations on competitive advantage: A nexus approach to the SDGs. Journal of Lifestyle and SDGs Review, 5(2), e04405. https://doi.org/10.47172/2965-730x.sdgsreview.v5.n02.pe04405
  18. Kumar, S., & Phrommathed, P. (2015). New product development: An empirical study of the effects of innovation strategy, organization learning, and market conditions. Proceedings of the National Academy of Sciences, 3(1).
  19. Li, J., Li, Y., Song, H., & Fan, C. (2021). Sustainable value creation from a capability perspective: How to achieve sustainable product design. Journal of Cleaner Production, 312, 127552. https://doi.org/10.1016/j.jclepro.2021.127552
  20. Mahmood, G., Khan, Q. M. N., Shakir, M. M. N., & Ahmad, B. (2024). Sustainable value creation through SDGs reporting: A sistematic review through an economic and accounting lens. Contemporary Journal of Social Science Review, 2(4), 1333–1346.
  21. Manninen, K., Laukkanen, M., & Huiskonen, J. (2024). Framework for sustainable value creation: A synthesis of fragmented sustainable business model literature. Management Research Review, 47(1), 99–122. https://doi.org/10.1108/MRR-03-2022-0177
  22. Marie, I. A., Sari, E., Dewayana, T. S., Lestari, F., Chofreh, A. G., Goni, F. A., & Klemeš, J. J. (2022). Enhancing sustainable performance using lean quality competitive manufacturing strategy: A case study in the luggage company. Chemical Engineering Transactions, 94, 943–948. https://doi.org/10.3303/CET2294157
  23. Markopoulos, E., & Gann, E. L. (2021). Bilateral knowledge-sharing for new product development under the UN sustainable development goals. In Lecture notes in networks and systems (pp. 85–93, Vol. 276). https://doi.org/10.1007/978-3-030-80094-9_11
  24. Moshood, T. D., Nawanir, G., Mahmud, F., Mohamad, F., Ahmad, M. H., & AbdulGhani, A. (2022). Biodegradable plastic applications towards sustainability: A recent innovations in the green product. Cleaner Engineering and Technology, 6, 100404. https://doi.org/10.1016/j.clet.2022.100404
  25. Mu, J., Thomas, E., Peng, G., & Di Benedetto, A. (2017). Strategic orientation and new product development performance: The role of networking capability and networking ability. Industrial Marketing Management, 64, 187–201. https://doi.org/10.1016/j.indmarman.2016.09.007
  26. Palsodkar, M., Yadav, G., & Nagare, M. R. (2024). Integrating Industry 4.0 and agile new product development practices to evaluate the penetration of sustainable development goals in manufacturing industries. Journal of Engineering, Design and Technology, 22(4), 1351–1392. https://doi.org/10.1108/JEDT-02-2022-0101
  27. Rashidirad, M., & Salimian, H. (2020). Smes’ dynamic capabilities and value creation: The mediating role of competitive strategy. European Business Review, 32(4), 591–613. https://doi.org/10.1108/EBR-06-2019-0113
  28. Risitano, M., La Ragione, G., Turi, A., & Ferretti, M. (2025). Analysing the relevance of value creation in the interconnection amongst entrepreneurship, marketing and innovation: A systematic literature review. International Journal of Entrepreneurial Behaviour and Research, 31(2–3), 781–809. https://doi.org/10.1108/IJEBR-02-2022-0203
  29. Salfore, N., Ensermu, M., & Kinde, Z. (2023). Business model innovation and firm performance: Evidence from manufacturing SMEs. Heliyon, 9(6), e16384. https://doi.org/10.1016/j.heliyon.2023.e16384
  30. Saraswati, R. M., Widyaningsih, N. P., Perez, E. F., Parikesit, A. A., Sam, T. H., & Ansori, A. N. M. (2025). Achieving sustainability in Indonesia’s manufacturing sector through green design innovations. Journal of Lifestyle and SDGs Review, 5(2), e03341. https://doi.org/10.47172/2965-730x.sdgsreview.v5.n02.pe03341
  31. Sonar, H., Ghag, N., Singh, R. K., Daim, T. U., & Agrawal, S. (2025). Digitalization of operations for sustainable value creation by SMEs: Analysis of barriers in the era of Industry 4.0. Journal of Knowledge Management, 29(6), 2018–2045. https://doi.org/10.1108/JKM-05-2024-0522
  32. van de Wetering, R., Mikalef, P., & Pateli, A. (2018). Strategic alignment between IT flexibility and dynamic capabilities. International Journal of IT/Business Alignment and Governance, 9(1), 1–20. https://doi.org/10.4018/IJITBAG.2018010101
  33. Vilochani, S., McAloone, T. C., & Pigosso, D. C. A. (2024). Consolidation of management practices for sustainable product development: A systematic literature review. Sustainable Production and Consumption, 45, 115–125. https://doi.org/10.1016/j.spc.2024.01.002
  34. Vuković, D., Dukić, A., Urošević, A., & Ilić, B. (2025). The impact of product and process innovation and technological dimensions on the sustainable competitive advantage of manufacturing companies. Ekonomika Poljoprivrede, 72(1), 241–254. https://doi.org/10.59267/ekopolj2501241v
  35. Xie, X., Khan, S., Rehman, S., Naz, S., Haider, S. A., & Kayani, U. N. (2024). Ameliorating sustainable business performance through green constructs: A case of manufacturing industry. Environment, Development and Sustainability, 26(9), 22655–22687. https://doi.org/10.1007/s10668-023-03569-3
  36. Xu, S., Li, H., Chen, J., Huo, J., & Kuang, X. (2024). Sustainable competitiveness through ESG performance: An empirical study on corporate resilience. Journal of Competitiveness, 16(3), 53–72. https://doi.org/10.7441/joc.2024.03.03
  37. Xue, F., Tan, Y., & Anwar, S. (2024). Innovation strategy, digital transformation and competitive advantage of manufacturing enterprises: Evidence from China. European Journal of Innovation Management. https://doi.org/10.1108/EJIM-09-2023-0786
  38. Yadav, S., Samadhiya, A., Kumar, A., Majumdar, A., Garza-Reyes, J. A., & Luthra, S. (2023). Achieving the sustainable development goals through net zero emissions: Innovation-driven strategies for transitioning from incremental to radical lean, green and digital technologies. Resources, Conservation and Recycling, 197, 107094. https://doi.org/10.1016/j.resconrec.2023.107094
  39. Yang, J., Zuo, Z., Li, Y., & Guo, H. (2024). Manufacturing enterprises move towards sustainable development: ESG performance, market-based environmental regulation, and green technological innovation. Journal of Environmental Management, 372, 123244. https://doi.org/10.1016/j.jenvman.2024.123244
  40. Zehir, C., & Allaham, M. V. (2024). The impact of value creation through dynamic capabilities on competitive advantage and firm performance. Migration Letters, 21(4), 1664–1681. http://www.migrationletters.com
  41. Gazzola, P., Drago, C., Pavione, E., & Pignoni, N. (2024). Sustainable business models: An empirical analysis of environmental sustainability in leading manufacturing companies. Sustainability, 16(19). https://doi.org/10.3390/su16198282
  42. Ghobakhloo, M., Iranmanesh, M., Mubarak, M. F., Mubarik, M., Rejeb, A., & Nilashi, M. (2022). Identifying Industry 5.0 contributions to sustainable development: A strategy roadmap for delivering sustainability values. Sustainable Production and Consumption, 33, 716–737. https://doi.org/10.1016/j.spc.2022.08.003
  43. Gupta, S., Gallear, D., Rudd, J., & Foroudi, P. (2020). The impact of brand value on brand competitiveness. Journal of Business Research, 112, 210–222. https://doi.org/10.1016/j.jbusres.2020.02.033
License
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

Sopyan, A., Sukesi, S., Suyanto, S., Assagaf, A., & Yunus, E. . (2025). Sustainable Competitive Advantage through SDGs, Value Creation, and New Product Development in Bekasi Manufacturing Sector. Journal of Economics, Management, Entrepreneurship, and Business, 5(1), 31-46. https://doi.org/10.52909/jemeb.v5i1.225
Downloads
View PDF PDF · Open Access
Statistics
Issue
Vol. 5 No. 1 (2025): May
Articles

Similar Articles

1-10 of 16

You may also start an advanced similarity search for this article.