Abstract

Roy Setiawan

This study aimed to resolve the research gap between the absorptive capacity variable against competitive advantage by combining the innovation performance and environmental strategy variables as research novelty. The type of research method used is quantitative, with 150 respondents in the garment and textile industry in Indonesia. The results of this study are that absorptive capacity has no significant positive effect on competitive advantage, absorptive capacity has a significant positive effect on innovation performance, absorptive capacity has a significant positive effect on environmental strategy, innovation performance has no significant positive effect on competitive advantage, the environmental strategy has a significant positive effect on competitive advantage, absorptive capacity affects competitive advantage through innovation performance as an intervening variable, absorptive capacity is having no significant impact on competitive advantage through environmental strategy as an intervening variable.