THE EFFECT OF OWNERSHIP OF EXCLUSIVE INTERNATIONAL NETWORK AND PHYSICAL ASSET TO INNOVATIVE LOGISTICS CAPABILITY AND ITS IMPACT ON COMPETITIVENESS

Abstract

This research intended to find out the description and the effect of ownership of the exclusive
international network and physical assets on competitiveness through innovative logistics
capability. It used strategic management theory especially dynamic capability school. It was a
descriptive, quantitative, causal, or cross-sectional survey research; sample size consisted of
280 logistics service companies in Jakarta (Jabodetabek) by using probability sampling
technique; data collection used questionnaires and processed by SEM-Lisrel program. The
urgency of this research was to answer the importance of innovative logistics capability in
enhancing the competitiveness of logistics services companies. This research tried to construct
a model that can be used by the companies in enhancing their competitiveness through
enhancing innovative logistics capability and certain resources. The findings of this research
comprised the ownership of international exclusive network had a positive and significant
effect on innovative logistics capability while the international exclusive network had no
significant effect on innovative logistics capability; but simultaneously their effect on
innovative logistics capability was positive and significant; innovative logistics capability had
a positive and significant effect on the companies’ competitiveness. Therefore, ownership of
physical asset and international exclusive networks must be integrated so that they transform
into innovative logistics capability in order to enhance the companies’ competitiveness