Optimizing competitive advantage of Indonesian startups: a study on the relationship between managerial capability, digital marketing, and business resilience

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Sovia Rosalin, Kusdi Raharjo, Hamidah Nayati Utami, Arik Prasetya

2026 Cogent Business and Management Vol. 13 Issue 1 Article Cited by 0 Quartile

Abstract

Managerial capability (MC) and digital marketing capability (DMC) are critical foundations for Indonesian digital startups to build and sustain competitive advantage (CA) in dynamic business environments. Drawing on the Resource-Based View (RBV) and the Dynamic Capability Theory, this study examines how MC and DMC influence CA and BR among Indonesian startups. An explanatory quantitative approach with a cross-sectional survey design was employed. Data were collected from 206 top-management decision-makers in Indonesian digital startups (including CEOs and other senior leadership roles such as founders/co-founders and directors) using a criteria-based purposive sampling technique. PLS-SEM through SmartPLS 4.0 was utilized to test the proposed measurement and structural model. The results show that MC has a positive and significant effect on CA and BR, while the direct effect of DMC is weaker and less statistically robust. However, CA proves to play a strong role in improving the BR of startups in Indonesia in facing various market challenges, and it serves as an important mechanism through which MC strengthens resilience. The interplay of MC and CA strengthens the resilience of Indonesian startups based on RBV theory and Dynamic Capability Theory. This research reveals that effective MC serve as valuable resources that enhance CA and adaptability. In contrast, the findings suggest startups should further optimize DMC to better translate digital initiatives into measurable competitive outcomes and sustained resilience in dynamic business environments. © 2026 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.

Affiliations

Department of Administrative Science, Faculty of Administrative Science, Universitas Brawijaya, Malang, Indonesia