Track: Sustainability

Abstract

Sustainability has become a relevant issue worldwide as organizations and consumers today are more concerned with ecological and social issues when consuming and using products and services, and therefore, they are taking greater responsibility for strategic organizational sustainability and environmental management. There are several factors that have proven to create company sustainability. However, different from previous studies which generally try to examine one or two factors that are considered affectual on organizational sustainability, this study tries to reveal the role of several factors such as digital transformation, operational effectiveness, supplier relationship management, logistics effectiveness, and competitive advantage on organizational sustainability. The subjects in this study are three newcomer IT manufacturers.  This research is conducted with a quantitative approach with the subject being the service users of newcomer IT producer companies as many as 75 companies with 200 respondents. The analysis used in this study is a Structural Equation Model (SEM) approach with the smart PLS. The results of the analysis show that digital transformation, operational effectiveness, supplier relationship, and competitive advantage have a significant effect on organizational sustainability while logistics effectiveness has no effect. Therefore, any company needs to determine the significant factors to reach the advantages. In addition, because this research only focuses on several factors such as operational effectiveness, supplier relationship, logistics effectiveness, and competitive advantage, other research that involves several factors of company sustainability needs to be conducted.