International Journal of Entrepreneurship (Print ISSN: 1099-9264; Online ISSN: 1939-4675)

Research Article: 2023 Vol: 27 Issue: 3

Exploring the Dimension Using Exploratory Factor Analysis of European Foundation for Quality Managements Enablers and Competitive Advantages

Lama Talal Khrais, Universiti Sultan Zainal Abidin

Noor Aina Amirah, Universiti Sultan Zainal Abidin

Citation Information: Khrais, LT., Amirah, N A.., (2023). Exploring The Dimensions Using Exploratory Factor Analysis Of European Foundation For Quality Management’s Enablers And Competitive Advantages, International Journal of Entrepreneurship, 27(S3), 1-16


The pharmaceutical industry is directly linked to human lives and faces disturbing problems. Therefore, the European foundation for quality management’s enablers minimizes risks associated with deficiency of medicines, technological development, and experience. The study was carried out to find the Effect of the European foundation for quality management’s enablers on Jordanian pharmaceutical companies to gain competitive advantages. 100 respondents were randomly selected from 15 pharmaceutical companies in Jordan. An exploratory factor analysis was performed and a structured questionnaire was used to summarize the research objectives. Research has shown the effectiveness of EFQM Enablers in gaining a competitive advantage. Finally, reliability testing was performed to determine acceptable levels. The study expands the scope of European foundation for quality management’s enablers (EFQM) enablers for Jordanian pharmaceutical companies. However, this study is geographically limited and should be extended to other regions. Moreover, the study results should serve as insightful numbers for Jordanian pharmaceutical companies in identifying persistent performance issues


EFQM model, EFA , Healthcare management, Jordanian pharmaceutical companies, Leadership, People, Process, Partnership and resources, pharmaceutical industries, Public healthcare, strategy


Jordanian pharmaceutical companies are currently witnessing many challenges and restrictions imposed by globalization and increasing technological developments, as well as the increase in global competition and the continuous change in consumer behaviour and requirements. In order for these companies to excel in their field, maximize their profits, and sit on top of the competing companies, they had to make every effort to adopt new practices and updated mechanisms, establish their rules in companies, and work to apply them professionally and distinctly, Perhaps the most important of these practices is the EFQM model as a means of continuity and enhancing its competitive advantage and improving the level of services and pharmaceutical products it provides to the local and international markets (Moeller,2001).

Companies control department in Jordan indicate that 13 pharmaceutical companies closed due to the reasons mentioned above. This study highlighted the effect of EFQM business excellence models on Jordanian pharmaceutical companies and their impact on competitive advantages, as the results of many kinds of literature have shown, from its effectiveness in achieving a high competitive advantage, and improving the services and goods provided.Grivokostopoulou, Kova and Perikos (2019) conducted an experimental study in a public university in Europe to explore the potentialities of the game-based learning environment and the gamified learning activities and evaluate the impact on students' learning experiences. Eighty-six (86) students - 52% male and 48% female - participating in the pilot study discussed their pre- and post-knowledge levels of entrepreneurial activities and how their attitudes and intentions toward entrepreneurship increased after participation in game-based learning activities. The results highlight that gamified learning activities increase students' perception of successful entrepreneurs, motivate them to take risks and challenges, utilise opportunities, and assist in formulating entrepreneurship competencies (Grivokostopoulou 2020).

Keeping all these in view, the objective of this study is twofold. The first objective is to identify the role of emerging digital technologies within entrepreneurship study at the higher education level. The second is to integrate selected technologies of study within the Bachelor of Entrepreneurship and Innovation (BEI) Program offered by a PTEP.

Research Objectives

The study would investigate the effect of EFQM enablers on Jordanian pharmaceutical companies to gain competitive advantages; the following specific objectives are drawn:

1. To determine the significant positive effect of the leadership on the competitive advantages.

2. To determine the significant positive effect of people on the competitive advantages.

3. To determine the significant positive effect of strategy on the competitive advantages

4. To determine the significant positive effect of partnership and resources on the competitive advantages.

5. To determine the significant positive effect of process on the competitive advantages

Research Questions

1. Does the leadership have a significant positive effect on the competitive advantages?

2. Do people have a significant positive effect on the competitive advantages?

3. Does the strategy have a significant positive effect on the competitive advantages?

4. Does the partnerships and recourses have a significant positive effect on the competitive advantages?

5. Does the process has a significant positive effect on the competitive advantages To know the best practices, the researchers visited online resources or information via:

Literature Review

Leadership and Competitive Advantages

Hili et al. (2017) reported Human capital, organizational learning, and leadership have a significant positive effect on organizational performance. Effect among other variables show that human capital, leadership, and agency performance have a significant positive effect on competitive advantage. Samsir (2018) indicated that leadership mentoring has a significant impact on innovation. Higher leadership standards lead to higher innovation. Innovation has a significant impact on competitive advantage.

Greater innovation leads to greater competitive advantage. Innovation as a mediating variable in the relationship between leadership orientation and competitive advantage shows that higher leadership orientation leads to higher competitive advantage, even though mediation innovation is higher. Hunitie's (2018) results showed that strategic leadership significantly predicted strategic planning, strategic thinking, and competitive advantage. The results also showed that strategic planning and thinking were significantly and positively associated with a competitive advantage. Strategic planning and strategic thinking are therefore agreed to inform the impact of strategic leadership on competitive advantage, Priadana et al. (2021) concluded that strategic leadership has a significant impact on performance, competitive strategy has no impact on performance, and strategic leadership has a greater impact on competitive strategy.

People and Competitive Advantages

Kumar & Pansari (2016) found that while both customer engagement and employee engagement positively influence company performance, the effect of customer engagement on company performance is stronger.

Furthermore, the impact of customer engagement and employee engagement on performance is improved for B2B (vs. B2C) and service (vs. manufacturing) firms. Le (2020) the results show that employee development and marketing skills, directly and indirectly, impact competitiveness through product innovation. The results provide organizations with important implications for improving their competitive advantage in terms of marketing, human resources, and product innovation.

Strategy and Competitive Advantages

Gareche et al. (2019) eight different areas were considered: strategic management, strategic marketing management, marketing management, information technology, knowledge management, resource-based theory, entrepreneurship, and human resource management. Consequently, among the many available approaches, the majority of companies use Porter's three strategies (differentiation, centralization, and cost leadership) to achieve competitive advantage. I understand. Of the three strategies, the differentiation strategy is the one that gets the most attention, and the use of all three strategies at the same time is rare.

The results of Yasa et al. (2020) showed that advertising strategy has had a significant positive impact on competitive advantage, and advertising strategy has significantly improved competitive advantage. Additionally, competitive advantage has a significant positive impact on achieving marketing performance.

This means that a higher competitive advantage can lead to better marketing performance, and competitive advantage can significantly convey the impact of advertising strategy on marketing performance. The results of Puspita et al. (2020) indicate that strategic direction and supply chain capabilities have a significant impact on competitive advantage and organizational performance.

Innovation ability influences competitive advantage but does not significantly affect the performance of furniture retailers. Clauss et al. (2021) state that companies should prefer exploratory strategies for innovation processes that generate fundamentally new knowledge, products, and services, or combine exploitation strategies with strategic agility. Although individual exploitation strategies do not help increase competitive advantage, exploitation strategies appear to adversely affect corporate competitive advantage.

Partnership and Resources and Competitive Advantages

Chen's (2019) study shows that both IT integration and trust in supply chain members can significantly improve supply chain agility and innovation, positively impacting a company's competitive advantage. The results show that IT integration and trust are an important common partnership precedent and resource for improving supply chain resilience and innovation. According to Liu (2021), SMEs need to put more effort into maintaining the quality of their partnerships. Second, internal coordination and agility to overcome limited resources and development, address market changes and customer needs, and create a distinct competitive advantage for further development in one organization.

The results of Mardatillah et al. (2020) endorsed the resource-based view that valuable, scarce, and imperfectly replicable resources are essential to achieving sustainable competitive advantage. The company's highly distributed resources provide a greater sustainable competitive advantage.

Process and Competitive Advantages

The results of Daengs et al. (2022) indicated that Information quality has a significant impact on product quality, the quality of information has a significant impact on response, Product quality has a significant impact on response, Product quality has a significant impact on competitive advantage, and Response has a significant impact on competitive advantage. Marakova et al. (2021) indicated that exploratory factor analysis can be applied to build an initial factor model of the source of a firm's competitive advantage, identifying three factors: marketing, innovation, and corporate social responsibility.

This indicates that marketing activities, innovation activities, and the application of corporate social responsibility are major sources of competitive advantage in large organizations operating in the market.. The results of Kusumadewi & Karyono (2019) indicate that service quality can impact competitive advantage. Davcik & Sharma (2016) assert that competitive advantage is significantly influenced by IT investments that affect product effectiveness.

Material and Methods

This study used a quantitative study design and performed the Exploratory Factor Analysis procedure for item scale validation with the Social Science Statistics Package. (Amirah, Asma, Muda, Amin, & Him, 2019). Exploratory factor analysis was used to find the relationship between items’ shared common variances and the individual item variance.

Data Collection

Structured questionnaires from managerial staff (Top and middle) management from all Jordanian pharmaceutical companies located in Jordan.

Target Population, Sampling Technique, and Sample Size

The population consisted of 15 Jordanian pharmaceutical companies based in Jordan. A simple random sample was used to generalize the observed features, and selected 100 respondents for data collection. (Amirah ,2019).

Results and Discussion

To measure sample size adequacy, Kaiser-Meyer-Olkin (KMO) was used. The KMO results in Table 1 expressed that the KMO values for all constructs (Leadership, People, partnership and resources, strategy, process, competitive advanatages) are > 0.6 which shows, the size of sample is adequate and is fit for factor analysis (Beavers, Lounsbury, Richards, & Huck, 2013).

Table1 KMO and Bartlett’s Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Leadership People Strategy Partnership & resources Process Competitive Advantages
Bartlett's Test of Sphericity (Sig.) Approx. Chi-Square 0.87 0.905 0.885 0.797 0.844 0.871
525.705 556.688 568.255 327.676 534.444 513.978
Df 45 45 45 28 45 45
Sig. 0.000 0.00 0.00 0.00 0.00 0.00

Additionally, the Bartlett sphericity test was < 0.000, which is significant for each variable and acceptable as it provides a realistic basis for factor analysis. (Beavers et al., 2013; Hashmi et al., 2020a). Varimax rotation with principal axis factorization (PAF) used to measure item structure. Varimax rotation assumes that the factors remain independent and that the resulting factors are as uncorrelated with each other as possible.

Finally, factor rotation was used to interpret the underlying structure of the factors Principal axis factorization (PAF) was applied to measure the shared variance among the extractable factors. A common criterion for factor extraction is eigenvalues > 1.0 (Osborne et al, 2008). The first two factors were extracted from each construct and are shown in Table 2. Leadership, people, strategy, partnerships and resources, and process. Moreover, more than 60% of the overall change in total variance was contributed by each extracted factor variable (Awang, 2015).

Table 2 Total Variance Explained
Factor Initial Eigenvalues Extraction Sums of Squared Loadings
1 Total % of Variance Cumulative % Total % of Variance Cumulative %
5.47 54.704 54.704 5.47 54.704 54.704
Factor Initial Eigenvalues Extraction Sums of Squared Loadings
1 Total % of Variance Cumulative % Total % of Variance Cumulative %
5.732 57.316 57.316 5.732 57.316 57.316
Factor Initial Eigenvalues Extraction Sums of Squared Loadings
1 Total % of Variance Cumulative % Total % of Variance Cumulative %
5.638 56.376 56.376 5.638 56.376 56.376
Partnership and Resources
Factor Initial Eigenvalues Extraction Sums of Squared Loadings
1 Total % of Variance Cumulative % Total % of Variance Cumulative %
4.124 51.548 51.548 4.124 51.548 51.548
Factor Initial Eigenvalues Rotation Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative %
1 5.384 53.835 53.837 3.561 35.61 35.61
2 1.155 11.553 65.389 2.978 29.779 65.389
Competitive Advantages
Factor Initial Eigenvalues Rotation Sums of Squared Loadings
Total % of Variance Cumulative % Total % of Variance Cumulative %
1 5.316 53.159 53.159 3.6 36.002 36.002
2 1.112 11.117 64.276 2.827 28.274 64.276

The columns of the twiddle factor matrix in Table 3 contained the factor loadings for each item under their respective variables. Factor loadings for all items were divided into factor 1 and factor 2 for each construct, from highest load/weight to lowest load. A commonality score is greater than the cutoff score (0.2) for each item, implying no additional factors (Child, 2006). Table 3 shows the community scores and factor loadings for each item in each component. The commonality score is greater than the cutoff score (0.2) for each item, meaning no additional factors are meant. (Child, 2006). Furthermore, community loads between 40 and 60 are low to moderate (Costello & Osborne, 2005), between 50 and 60 are acceptable (MacCallum, Widaman, Zhang & Hong, 1999), and >0.70 is ideal. is considered. (Beavers et al., 2013).

Table 3 Communalities and Rotated Factor Matrix  
Leadership Factor  
Item No. Item Statement Communalities 1 2  
L1 Role modeling ethics and values are developed, communicated and implemented at all leadership levels, to support the creation of the organization's culture 0.491 0.797  
L2 Leaders stimulate and encourage empowerment, creation  and innovation 0.536 0.79  
L3 Improvement activities are suitably prioritized and managed. 0.617 0.786  
L4 Leaders participate or are involved with professional organization activities, including active involvement at conferences and seminars, particularly promoting and supporting excellence. 0.624 0.732  
L5 Activities that aim to improve the environment and pharmaceutical company’s contribution to the local community and the wider society are encouraged by leaders, with the view to respecting the rights and interests of future generations. 0.52 0.732  
L6 Staff are encouraged and supported by leaders to participate in improvement activities, particularly cross-team working 0.535 0.721  
L7 Equality of opportunity and diversity in all aspects of pharmaceutical company’ s life is actively encouraged and supported by leaders 0.516 0.719  
L8 The resources and investments needed to support change are secured by leaders 0.635 0.714  
L9 The risks associated with change, and the effective delivery of the overall change program  are analyzed and managed by leaders 0.487 0.701  
L10 Change plans and the reasons for them are well communicated to staff and other stakeholders by leaders, with opportunity for feedback and input provided. 0.509 0.698  
People Factor  
Item No. Item Statement Communalities 1 2  
P1 Human resource policies, strategies and plans are developed. 0.427 0.829  
P2 Human resource plans and the pharmaceutical company’s structure are aligned with the policy and strategy of the pharmaceutical companies, and how this supports the delivery of policy and strategy through a framework of key processes 0.547 0.824  
P3 Staff surveys and other forms of staff feedback are used to inform and improve human resource policies, strategies and plans 0.496 0.8  
P4 Training and development plans are developed and used to help ensure that staff match present and future capability needs of the pharmaceutical company. 0.64 0.792  
P5 People’s objectives are reviewed, updated and aligned with pharmaceutical company’s objectives and targets. 0.687 0.762  
P6 People  are encouraged and supported to be involved in pharmaceutical company’s activities through conferences, ceremonies and other activities. 0.521 0.74  
P7 Top-down, bottom-up and horizontal communication channels are developed, used and regularly evaluated. 0.581 0.726  
P8 Best practice and knowledge is identified and shared throughout the pharmaceutical company. 0.627 0.722  
P9 Levels of benefit, such as pension, healthcare, childcare provision  for people are determined and agreed 0.679 0.704  
P10 Facilities and services, such as flexible working hours, are determined and agreed. 0.527 0.654  
Strategy Factor  
Item No. Item Statement Communalities 1 2  
S1 The results and outputs from internal performance indicators or measures are used in the development of policies and strategies. 0.62 0.846  
S2 Social, environmental, legal ,economic, demographic and political issues are understood and incorporated in strategy development 0.617 0.814  
S3 The impact of new technologies is understood and analyzed. 0.474 0.787  
S4 Policy and strategy is developed to be consistent with the pharmaceutical company’s mission, vision and values, is based on the needs and expectations of all stakeholders, takes into account information from  a wide range of sources, and is underpinned by the concepts of excellence 0.444 0.785  
S5 Present and future opportunities for development or the identification of areas of competitive advantage are identified and fully considered. 0.554 0.755  
S6 The pharmaceutical company’s policy and strategy is aligned with that of other strategic partners as necessary. 0.555 0.745  
S7 The relevance and effectiveness of policy and strategy is evaluated, reviewed and updated. 0.716 0.744  
S8 Strategy is communicated and cascaded with all staff, And with other stakeholders, in an appropriate way, with the effectiveness of the communication reviewed and adjusted as necessary. 0.662 0.689  
S9 Plans, objectives and targets are aligned, prioritized, agreed and communicated within the pharmaceutical company, including being embedded into individual objectives as part of an appraisal process. 0.57 0.666  
S10 Awareness within and outside the pharmaceutical company of its’ strategy is measured and evaluated. 0.425 0.652  
Partnership and resource Factor  
Item No. Item Statement Communalities 1 2  
PR1 Partnership relationships are structured to create and maximize value for both parties. 0.653 0.808  
PR2 Sharing of knowledge with partners is ensured. 0.527 0.749  
PR3 Financial strategies and resources are developed and implemented, with financial resources delivered through clearly defined processes, which support pharmaceutical company -wide policy and strategy. 0.546 0.739  
PR4 Innovative and creative thinking within the companies is generated through the use of knowledge resources. 0.56 0.729  
PR5 Partnerships help to generate and support creative and innovative thinking. 0.364 0.726  
PR6 Mutual development and learning is supported through partnership. 0.471 0.687  
PR7 Cultural compatibility and the sharing of knowledge with partners is ensured. 0.532 0.686  
PR8 Information technology is used to support the internal communication and sharing of information and Knowledge between partners. 0.472 0.603  
Item No. Process Factor
Item Statement Communalities 1 2
Pro1 A robust process management system is established and sed. 0.65 0.831
Pro2 Systems standards, such as quality management, health  and safety, environmental and occupational health, are applied in process management 0.577 0.775
Pro3 Performance and perception results and information from learning activities are used to help set priorities and targets for improvement, and help to inform improved methods of operation. 0.749 0.769
Pro4 New process designs, ways of managing pharmaceutical company and the use of new technologies are discovered and applied. 0.638 0.736
Pro5 Process changes are communicated to internal people and other stakeholders as necessary. 0.691 0.606 0.454
Pro6 It is ensured that people are trained to operate new or changed processes prior to implementation. 0.666 0.588 0.468
Pro7 It is ensured that process changes actually achieved the desired and predicted results. 0.574 0.842
Pro8 The impact and potential of new technologies is anticipated, understood and utilized in the planning of new products. 0.754 0.813
Pro9 Creativity and innovation is used to develop competitive products, for current established markets, and for gaining access to new markets. 0.565 0.766
Pro10 Creativity, innovation and the skills and competencies of internal staff and partners are used to design and develop competitive products. 0.675 0.517 0.639
Competitive Advantages Factor
Item No. Item Statement Communalities 1 2
CA1 The Jordanian pharmaceutical companies are superior to its competitors in terms of price and quality of products. 0.708 0.833
CA2 Increase the market share in last three years over competitors. 0.68 0.802
CA3 Increase annual net profit in the last three years over competitors. 0.652 0.798
CA4 The Jordanian pharmaceutical companies have the ability to offer high value to customers than competitors. 0.663 0.676 0.442
CA5 The Jordanian pharmaceutical companies reduce the cost of administrative Operations. 0.658 0.633 0.462
CA6 Leadership in the Jordanian pharmaceutical companies gives it superiority over its competitors. 0.623 0.626 0.781
CA7 People in the Jordanian pharmaceutical companies give it superiority over its competitors. 0.614 0.781
CA8 Keeping up with update process and use of updating technology over competitors. 0.68 0.329 0.741
CA9 Partnership and resources that used in Jordanian pharmaceutical  companies give it  superiority over its competitors 0.616 0.701
CA10 Updated strategy used by Jordanian pharmaceutical companies that cope up with environmental change is distinguished favorably from its Competitors. 0.534 0.471 0.664

"Leadership" and "People" and "Strategy" give the same result because the factor contains 10 items (item 1 to item 10) for each variable. Factor 1 formed item 1, 2, 3, 4, 5, 6, 7, 8, 9, 10. In contrast, Partnerships and Resources has eight items (items 1 to 8) per variable and one factor. “process” and “competitive advantages” are consisting same results by having ten items and separated into two factors; namely, Factor 1 and Factor 2 in 3 iterations. Finally, the factor loadings are > 0.512 and consider as significantly stable (Hair, Black, Babin, Anderson, & Tatham, 2006; Pituch & Stevens, 2015).

Reliability test

Table 4 indicate that the study variables structure consisted of 0.979, where the results ranged Cronbach's alpha values between 0.881 and 0.938 for the reliability coefficient, the study concluded that all study variables consisted of Cronbach's alpha > 0.70, which is It is good and acceptable

Table 4 Test of Reliability
Variables N of Items Cronbach's Alpha (N=100)
Leadership 10 0.898
People 10 0.924
Strategy 10 0.938
Partnership and resources 8 0.881
Process 10 0.907
Competitive advantages 10 0.869
Total 58 0.979

Conclusion and Recommendations

In this study, the variables empirically was measured and found them to be within prescribed limits. Analysing the components with EFA, and found two factors for some variables. All items used were retained based on criteria met. Finally, a reliability analysis was performed and a higher level of realistic internal reliability and consistency was found by representing Cronbach's alpha values above 0.70 for all structures and dimensions. The study recommends reviewing and redesigning current processes, and using the EFQM Enabler can give you a competitive advantage. This helps improve business performance and ensure its viability and continuity. The need to develop, communicate and implement role model ethics and values at all levels of management to support the establishment of organizational culture. Management must realize EFQM, connect it to the organization's strategy, and promote activities aimed at improving the environment and contributing to the pharmaceutical company's community and wider society through leadership. Its purpose is to: Professional organizations, including, in particular, active participation in conferences and seminars, in particular the promotion and support of excellence, an interest in analysing risks associated with change and effective implementation, and managing a comprehensive leadership turnover program. Participation of worker leaders in activities. Also recommends the necessity of defining and agreeing on levels of entitlement, such as retirement pensions, health care, and child care for people, and focusing on the goals of individuals being reviewed, updated, and aligned with the goals and objectives of the pharmaceutical company, as well as the need to identify best practices and knowledge and share them throughout the pharmaceutical company. Encouraging and supporting people to participate in the activities of the pharmaceutical company through conferences, celebrations, and other activities. Furthermore, the strategy should be communicated and sequenced with all employees and with other stakeholders in an appropriate manner, with communication effectiveness reviewed and modified as necessary, and attention given to identifying current and future opportunities for development or identifying and fully considering areas of competitive advantage. and try to understand and analyze the impact of new technologies. It is also consistent with the pharmaceutical company's mission, vision and values, is based on the needs and expectations of all stakeholders, considers information from a variety of sources, and implements policies and policies in a supported manner. Finally, the study explores the need for companies to support mutual development and learning through partnerships, and the need to develop and implement strategies and financial resources through well-defined processes that support policy and strategy at the pharmaceutical company level.


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Received: 01-Feb-2023, Manuscript No. IJE-23-13231; Editor assigned: 03-Feb-2023, PreQC No. IJE-23-13231(PQ); Reviewed: 17-Feb- 2023, QC No. IJE-23-13231; Revised: 20-Feb-2023, Manuscript No. IJE-23-13231(R); Published: 27-Feb-2023

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