Examining the Influence of Technological Innovation and Human Resource Capability on Competitive Advantage and its Implications for Operational Performance

Abstract

This study addresses the suboptimal operational performance of the Special Terminal of PT Oleokimia Sejahtera Mas (OSM) in Dumai, reflected in service delays, limited technological innovation, and uneven human resource readiness amid rising demand and regulatory pressure. Although these constructs have been widely studied in general port and logistics settings, their joint influence within a single-commodity special terminal remains underexplored. This study examines the effects of technological innovation and human resource capability on competitive advantage and operational performance, positioning competitive advantage as a mediating mechanism. A quantitative, cross-sectional survey was conducted among 190 employees of the OSM Special Terminal, selected through purposive sampling from a population of 350, and analyzed using Partial Least Squares Structural Equation Modeling. The results show that technological innovation and human resource capability are positively associated with competitive advantage, which is in turn associated with stronger operational performance, and that competitive advantage significantly mediates both relationships. The novel contribution of this study is showing that technological innovation converts into performance mainly through customer-facing digital interaction, while human resource capability operates through a slower, relationally mediated pathway, offering an integrative resource-based explanation beyond prior single-antecedent studies.