Home / Regular Issue / JSSH Vol. 28 (2) Jun. 2020 / JSSH(S)-1324-20

 

Disruptive Business Model Innovation in Indonesia Digital Startups

Kurnadi Gularso, Tirta Nugraha Mursitama, Pantri Heriyati and Boto Simatupang

Pertanika Journal of Social Science and Humanities, Volume 28, Issue 2, June 2020

Keywords: Continuous reconfiguration capability, disruptive business model innovation, startups, strategic orientation, stakeholder management

Published on: 26 June 2020

Many studies have investigated how incumbents react to disruptive business model innovation. However, how digital (tech) startups as the initiator performs business model innovation that consciously or not disrupts incumbents from various industries, has not yet been widely analyzed empirically. This study employed a quantitative method with Partial Least Squares-Structural Equation Modeling (PLS-SEM) using SmartPLS 3 software to present and analyze the data. The sample of Indonesia digital startups was taken from the list managed by DailySocial, an Indonesia digital media startup. A self-administered questionnaire was distributed among the Founders and or C-Level of Indonesia startups adopting a random sampling technique. The findings of this study showed that startups apply disruptive business model innovation to survive and scale-up. This study also suggested some predictors of disruptive business model innovation. As an alternative to implementing dynamic capabilities, startups need to have transformation capability in the form of continuous reconfiguration capability; leadership aspects, especially entrepreneurship mentality, which are embodied in strategic orientation; and stakeholder management support.

ISSN 0128-7702

e-ISSN 2231-8534

Article ID

JSSH(S)-1324-20

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