The Influence of Open Innovation on Competitive Advantage Through Organizational Strategy and Corporate Governance as Mediation

Abstract

Umrah travel, or Umrah pilgrimage trips, has experienced significant growth in Indonesia over the last few decades. The demand for Umrah from the Indonesian people continues to increase, along with increasing awareness and interest in carrying out the Umrah pilgrimage. This research aims to determine the effect of open innovation on competitive advantage at Umrah Travel registered with PPIU through organizational strategy and corporate governance as mediating variables. Data collection techniques in this research used questionnaires, observation, and a literature study. This type of research uses quantitative research, and data analysis is carried out using Partial Least Square with SmartPLS 4.0 software. The samples in this study were 336 Umrah travel agencies registered with the Indonesian Ministry of Religion's PPIU. The results of this research show that: 1. Open innovation has a positive and significant effect on organizational strategy. 2. Open innovation has a significant and positive direct effect on corporate governance. 3. Open innovation, corporate governance, and organizational strategy have a positive and significant effect on competitive advantage. 4. Open innovation has an indirect influence on competitive advantage through organizational strategy as a mediator. 5. Open innovation has an indirect influence on competitive advantage through corporate governance as a mediator.