The mediating role of technology innovation in order to strengthen the South China Sea trade
a study of corporate governance approach
DOI:
https://doi.org/10.14488/BJOPM.3079.2026Keywords:
Strategic management, Maritime trade, SEM-PLS, Good governance, Technology IntegrationAbstract
Purpose: This study aims to develop a strategic management model to strengthen Indonesia’s maritime trade competitiveness in the South China Sea (SCS) by integrating good and clean governance, interagency synergy, government policy, and technological innovation.
Design/methodology/approach: This study employs a quantitative explanatory approach using Structural Equation Modeling based on Partial Least Squares (SEM-PLS) to examine the relationships among governance, interagency synergy, government policy, technological innovation, and trade strengthening.
Findings: Good and clean governance positively affects trade strengthening (β = 0.28; p < 0.05), with partial mediation by technological innovation (indirect effect = 0.15). Interagency synergy has the strongest direct effect (β = 0.32; p < 0.01) and is fully mediated by technological innovation (indirect effect = 0.18). Government policy also has a positive effect (β = 0.24; p < 0.05), with partial mediation (indirect effect = 0.12). Technological innovation demonstrates a key mediating role (Q² = 0.45; R² = 0.58).
Limitations of the investigation: The study focuses on Indonesia’s maritime trade context and uses a quantitative SEM-PLS approach.
Practical implications: The proposed Center of Indonesian Cross-sea Integrated Services (CICIS) and Joint Standby Force may strengthen coordination among the eight agencies within the Indonesian National Single Window (INSW).
Originality/Value: This study develops an integrated framework linking governance, interagency synergy, government policy, and technological innovation to maritime trade strengthening.
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Copyright (c) 2026 Anggiat Napitupulu, Yudi Azis, Akhmad Fauzi, Umi Kultum
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