The mediating role of technology innovation in order to strengthen the South China Sea trade

a study of corporate governance approach

Authors

  • Anggiat Napitupulu Padjajaran University, Bandung, Indonesia. https://orcid.org/0009-0003-4976-8512
  • Yudi Azis Padjajaran University, Bandung, Indonesia.
  • Akhmad Fauzi Padjajaran University, Bandung, Indonesia.
  • Umi Kultum Padjajaran University, Bandung, Indonesia.

DOI:

https://doi.org/10.14488/BJOPM.3079.2026

Keywords:

Strategic management, Maritime trade, SEM-PLS, Good governance, Technology Integration

Abstract

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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Published

2026-10-07

How to Cite

Napitupulu, A., Azis, Y., Fauzi, A., & Kultum, U. (2026). The mediating role of technology innovation in order to strengthen the South China Sea trade: a study of corporate governance approach. Brazilian Journal of Operations & Production Management, 23(3), 3079. https://doi.org/10.14488/BJOPM.3079.2026

Issue

Section

Research paper