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The purpose of this paper is to analyze the effect of collaboration, capability and information sharing (IS) on logistic performance, the effect of collaboration and IS on capabilities, the effect of collaboration on logistic performance through capabilities, the influence of IS on logistic performance through capabilities and the effect of logistics capabilities on logistics performance.

This study uses a quantitative approach and is included in explanatory research. This research uses cross section research design. The research populations are all companies incorporated in GAFEKSI (Joint Forwarder and Expedition Indonesia) of East Java. Sampling in this research is by using a purposive sample. The sample of this study amounted to 47 forwarder and expedition companies. Data analysis method used is partial least square.

Collaboration has a positive impact on capabilities (CAP); capability (LOC) positive impact on logistic performance; collaboration does not directly affect the logistics performance; and construct capabilities (LOC) is the mediation of IS in building business logistics performance. Increasing the intensity of IS has no direct contribution to increased flexibility, and collaboration is driven by partnership and network, whereas CT (trust) can be ignored, as it is not proven to make a dominant contribution to collaboration.

The novelty of this research is found in the strategic role of capabilities as the dominant latent variable in building business performance of logistic companies. This study finds dual mediation, where both mediations are expressed as full mediation, because the direct effect of mediator latent variables is significant (Little et al., 2010; Hair et al., 1995).

This study aims to examine the role of creative destruction and knowledge creation which is a mediation between the speed of innovation and the competitiveness of food small- and medium-sized enterprises (SMEs). Creative destruction and the creation of competency-based and market-based knowledge are usually carried out by companies in power to create barriers to entry and expand distance with similar businesses, so the role of creative destruction and knowledge creation as mediation to strengthen competitiveness is investigated.

The data in this study were collected from 161 UKM which are the population of food UKM in Malang, covering three regions, namely, Malang City, Malang Regency and Batu City. Warp Partial Least Square-Structural Equation Modeling (WarpPLS-SEM) has greater statistical requirements than other covariance-based methods, which are more likely to give results that are in accordance with the conditions of the population (significant if it is actually significant in the population) so that it is very efficient.

It is very important for the pace of innovation development to improve the competitiveness of food SMEs. Innovation ideas are quickly realized and products that enter the market faster have greater opportunities to increase competitiveness through profits and productivity. The pace of innovation development increases the competitiveness of food SMEs. This study proves that competitiveness can be increased once the pace of innovation development is followed by creative destruction and knowledge creation. In this case, creative destruction is done through increased competence and maintain the innovations that have been achieved by food SMEs. Increasing business competence can be done through cost efficiency, improving product quality and improving worker skills. This is done while maintaining innovation achieved to strengthen market networks, customer service and innovation in product packaging. The basis of organizational learning is knowledge creation; this point is missing in organizational learning theories. The focus here is on the creation of knowledge as a process, a missing factor in theories about learning organizations.

This study has limitations that this study analyzes processed foods and innovations in general. Future research should investigate one type of processed food based on an innovation typology so that it can provide more effective and efficient recommendations.

To the best of the authors’ knowledge, this is the first known analysis of innovation speed and creative destruction for SMEs of food sector.