Building competitive advantage through leadership competency, responsiveness, integration, and supply chain agility: Assessing the moderating role of supply chain digitalization

Abstract

Indonesia's manufacturing industry is experiencing a weakening in performance: the PMI fell to 46.9 in June 2026, and the Logistics Performance Index ranking slumped to 61st out of 139 countries, signaling a decline in competitive advantage amid global pressures. This study examines the influence of leadership competency on competitive advantage, mediated by supply chain integration, responsiveness, and agility, with supply chain digitization as a moderating variable, in manufacturing companies in Indonesia. Data were collected via an online questionnaire (Google Forms) using a 5-point Likert scale from 104 valid respondents and analyzed using partial least squares structural equation modeling (PLS-SEM) with SmartPLS 4.0 software. The results show that leadership competency has a significant positive effect on supply chain integration, responsiveness, and agility. Integration, responsiveness, and agility each have a significant positive impact on competitive advantage, with agility showing the strongest effect. The three hypothesized moderating effects of supply chain digitization were not significant. Leadership competency’s effect on competitive advantage is fully mediated through supply chain responsiveness, integration, and agility. Managerially, investment in leadership development will not have an optimal impact without strengthening supply chain capabilities, especially agility. Manufacturing companies are advised to prioritize leadership training focused on rapid, adaptive decision-making to strengthen cross-functional coordination. This research contributes to enriching the current theories in supply chain management and dynamic capability.