Jurnal Aplikasi Bisnis dan Manajemen (JABM) E-Journal
Vol. 12 No. 1 (2026): JABM, Vol. 12 No. 1, Januari 2026

Building Competitive Advantage Through Trust, Innovation, and Customer Loyalty in E-Business

Keni Kaniawati (Department of Management, Faculty of Economics and Business, Widyatama University)
Andhi Sukma (Department of Management, Faculty of Economics and Business, Widyatama University)
Desy Oktaviani (Department of Management, Faculty of Economics and Business, Widyatama University)



Article Info

Publish Date
31 Jan 2026

Abstract

Background: The growth of Indonesia’s e-commerce industry has created intense competition, requiring businesses to strengthen their competitive advantage through effective digital strategies. Trust, innovation, and customer loyalty are considered key drivers of digital competitiveness, yet firms still face challenges in sustaining loyalty and digital performance.Purpose: This study aims to examine the effects of trust, innovation, and customer loyalty on competitive advantage and their subsequent influence on fundamental e-business performance.Design/methodology/approach: A quantitative research approach was employed, utilizing structured questionnaires distributed to 220 respondents who actively use e-commerce platforms, including Shopee, Tokopedia, Lazada, Blibli, and Bukalapak. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 3.0.Findings/Result: The results indicate that customer loyalty is the strongest predictor of competitive advantage, while trust has a significant impact on fundamental e-business practices. However, innovation did not have a significant direct effect. Competitive advantage was also found to mediate the relationship between customer loyalty and e-business performance.Conclusion: Strengthening customer loyalty and building trust are crucial strategies for enhancing competitiveness and digital business success. To achieve this, innovation must be more closely integrated with customer needs to deliver value.Originality/value (state of the art): This study contributes to the literature by integrating behavioral and strategic constructs into a unified model, offering new insights into the role of intangible assets in enhancing e-commerce performance in emerging markets, such as Indonesia. Keywords:  competitive advantage, customer loyalty, digital performance, innovation, e-business  

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Journal Info

Abbrev

jabm

Publisher

Subject

Decision Sciences, Operations Research & Management

Description

Journal of Business and Management Application (JABM) published articles in the field of business and management applications such as business strategy management, financial management, human resources and organization, business value chain and other issues in the field of business and management. ...