Society 5.0 focuses on people and changes from innovation to technological transformation through industrial automation 4.0. In this study, environmental turbulence refers to exogenous factors that give rise to an uncertain and volatile situation that impacts performance. This study was measured by asking respondents’ perceptions through explanatory studies and preliminary surveys about market predictability, innovation, and customer preference. Disruptive innovation and environmental turbulence are key creative drivers for reengineering businesses; however, only agile innovation can take advantage of the economic downturn. Exploratory case studies and literature reviews are using to test the antecedent of environmental turbulence, Distinctive Innovation Capabilities, through an innovative business model to firm performance. From a managerial perspective, this study provides a comprehensive view of environmental turbulence’s impact, how to develop a DIC strategy for developing an organization’s business model, how to achieve it, what variables contribute, and how to relate it to performance. This research’s authenticity lies in how management comes up with a practically oriented framework of how organizations shape to be innovative and competitive by constructing common business models. However, this study has limitations due to its qualitative nature and conceptual framework, which needs to be investigated further through large-scale surveys by quantitative research.

Purpose This study aims to investigate solutions to answer several questions regarding the direct influence of the respond to environmental turbulence (ET) on firm performance (FP) and indirectly through business model transformation (BMT) on telecommunication internet service provider (ISP) in Indonesia. Furthermore, given the importance of telecommunication services for Indonesia to continue developing amid volatility, uncertainty, complexity and ambiguity, technology disruption impacts the telecommunication business. Also, investigating the relationship between BMT and FP simultaneously by embracing ET. Referring to the phenomena above, it is necessary to analyze what factors affect company performance. Therefore, this study aims to examine the effect of ET on FP, the effect of ET on BMT and the effect of ET on FP through BMT. Design/methodology/approach This study surveyed 239 ISPs in Indonesia through their top-level management representatives. In addition, this study analyzed the overall model good of fit and causal relationship using confirmatory factor analysis and structural equation modeling. This type of research is verification research. This study takes a quantitative approach by measuring the sample variables built on the construct and representing the study population. Verification research aims to test answers to several research questions regarding ET variables, BMT and company performance. The data are primarily collected through questionnaires distributed online. Respondents are the top management of every ISP organization and company as the unit analysis in this study. Of the 298 questionnaires distributed, 239 valid responses (80.2%) were obtained using the cross-sectional time method, and samples that met these criteria were carried out using a simple random sampling technique. This study uses a multivariant measure in measuring construct dimensions. All items have been rated on a five-point Likert scale ranging from 1 (“strongly disagree”) to 5 (“strongly agree”). Findings The results prove that responding to ET does not directly affect FP but indirectly affects FP through BMT. Thus, solutions to improve FP rely on BMT and build by developing responses to ET. The author finds that novelty BMT design is significantly related to what factors drive the business transformation towards achieving performance. Although, this study also finds that BMT positively mediates the relationship between ET to influence performance. ET alone is no longer adequate, and organizations need to revamp the BMT to achieve FP. The organization needs to leverage ET to respond to a shifting basis of competition and create a creative strategy to bring unserved customer segments and offer a high value for customer experience. This study also contributed to the movement of research trends targeted at BMT. This study provides an appropriate riposte for quantitative empirical studies that elucidate the correlation between BMT and FP by simultaneously embracing and managing ET. The relationship between BMT and the factors that support it will be higher comprehend when contextualized. This paper finds different designs and impacts of BMT on business transformation results that culminate in firm business performance as it faces an uncertain business environment that grows dynamically. Although this novelty is important, the authors found no support for effectiveness. However, this study highlights the robustness of the important factors that drive BMT to work effectively to improve business performance. Research limitations/implications This research using the cross-sectional approach, thus cannot capture behavior over a period, might miss seizing the dynamic variable over an extensive period. Longitudinal studies can provide broader findings, especially by capturing the results of various dynamics levels in a certain period, and can analyze the causal relationship between variables in various time conditions. This research data was collected based on the provisions before COVID-19. Therefore, in the future, it may be useful to understand if there are differences in results during COVID-19. Further, researchers advise examining specific pandemic contingency factors as moderating variables for the current research model. Practical implications This study provides the implications of three factors such as: theoretical aspect: enriches the contingency theory view with RBV integrated industrial organization approach: systematically share organization to manage the business transformation based on the situation environment. This research contributes to leveraging contingency theory and dynamic capability theory by presenting organizational interactions that adapt to changes caused by ET changes in internal and based on external situations. Managerial aspect: This study provides managers with a comprehensive perspective on enhancing strategic dynamics by understanding and developing capabilities adapted from dynamic markets. Besides, regulation is an important driving factor for business continuity. Adaptive regulation is predictive in nature and anticipates various future changes in line with business developments in the 4.0 era. Investigating a set of antecedents of ET in changing business models has highlighted the importance of complementarity as a critical factor in developing future research. Regulatory aspect: Telecommunication regulations must be able to predict, anticipate and respond to challenges of technological development and the needs of society; involving practitioners who are competent in drafting regulations (fair business competition); involving independent bodies in carrying out regulations and regulations do not need to regulate technical details related to technology details because technology changes rapidly. Therefore, another recommendation for the managerial is managers need to improve skills to build ET strategic competencies on strategic resource flexibility, adapt to rapid changes and increase insight into opportunities associated with strategy implementation. Managers require developing a team that acts as a creative change agent to identify and predict unstable business conditions and harmonize changes from uncertainty in implementing policies and regulations. Managers must apply their leadership style effectively to appropriate situations to adapt to the effects of changing markets, regulations and competitors. Social implications Telecommunication regulations expect to answer the global community’s needs that have developed into a networked civil society via the internet, answering the community’s needs, not just to follow trends and technological speeds. The implication of research on regulators requires the need to quickly formulate new regulations because the lengthy process of drafting regulations will result in unclear rules of play between stakeholders involved in business and communication technology. Originality/value This study extends the contingency theory and dynamic capabilities through organizational interactions, collaborative with RBV theory, and this study also extends previous research on business model innovation. Respond to ET alone cannot face unpredictable business turbulence. Organizations need to revamp the business model to achieve performance and examine BMT’s central role as unique to the service context and distinct from the more studied innovation process. This study highlights the strength of the critical factors that drive the BMT to work effectively to improve business performance, which shows the importance of paradigm-shifting innovation through empirical studies that explain the correlation between BMT and FP while embracing response to ET.

This study examines the impact of environmental uncertainty and integrative strategy on growth of firm performance through the mediating role of the Business Model Transformation (BMT) strategy of information communication technology (ICT) in Indonesia. The research data was collected from the executive management of ICT through survey research with 30 questionnaire surveys and exploratory study with seven company leaders through in-depth interviews. This study analyzes the suitability of the overall model through causal relationships using Partial Least Square-Path Modeling (PLS-PM). The results show that the BMT predominantly influences the growth of ICT companies. The BMT is predominantly built by the environmental uncertainty (ET) strategy rather than by integrative capability. Thus, companies need to improve their ability and creativity to anticipate and adapt to any uncertainty that unexpectedly results in dynamic competition.

This study assesses solutions to several questions regarding the effect of Environmental Turbulence on Firm Performance directly and indirectly through Business Model Transformation on Internet Service Provider Companies in Indonesia. The research approach used is an explanatory survey, verification research with a quantitative approach by measuring a sample of variables built on the population's constructs representing 239 companies. The author finds that novelty B.M. transformation design is significantly related to what factors drive the business transformation. Although, this study also finds that BMT positively mediates the relationship between environmental turbulence to influence performance. Environmental turbulence alone is no longer adequate, and organizations need to revamp the B.M. to achieve firm performance. This study also contributed to the movement of research trends targeted at B.M. Transformation. This study provides an appropriate riposte for quantitative empirical studies that elucidate the correlation between BMT on company performance by simultaneously embracing and managing environmental turbulence. The relationship between BMT and the factors that support it will be higher comprehend when contextualized. The author locates different designs and impacts of BMT on business transformation results that culminate in firm business performance since it faces an uncertain business environment that grows dynamically. Although this novelty is important, the authors found no support for effectiveness. However, this study highlights the robustness of the important factors that drive BMT to work effectively to improve business performance.