Purpose Economic Society 5.0 is the answer to the challenges of the Industrial Revolution 4.0 through the creation of new value from the development of advanced technology that aims to reduce the gap between human and economic problems. Excellent human resources and adequate digital infrastructure are requirements in an Economic Society 5.0. Cooperatives as community economic organizations are players in the Industrial Revolution 4.0. Because of low competitiveness, cooperatives cannot create new and sustainable income streams, particularly digitalization capabilities. This study aims to encourage the competitiveness of cooperatives in the West Java region, Indonesia, in an Economic Society 5.0 by identifying the correlation between digital capabilities, digital orientation, employee resistance, government support, digital innovation and competitiveness. Design/methodology/approach This study uses a quantitative method through surveys as data collection techniques by distributing questionnaires to 386 leaders of cooperatives in West Java. Hypothesis testing uses analysis technique of structural equation modeling with partial least squares tool. Findings There are five hypotheses that are supported in the proposed model in this study. Digital orientation and government support have a positif and significant effect on digital innovation, in contrary; digital capability and employee resistance do not show any effect. Digital orientation, government support and digital capability also have a positive and significant effect on competitiveness. Meanwhile, employee resistance and digital innovation have no significant effect on competitiveness. Digital innovation was also found not to mediate the relationship between digital orientation, government support, digital capability and employee resistance with competitiveness. Originality/value This study provides new insights into the study of cooperatives as community’s economic institutions. This study adds empirical evidence of the factors that influence the competitiveness of cooperative institutions in Indonesia as a driver of the community’s economy. This study also provides practical implications for the development of cooperative competitiveness in developing countries, particularly in Indonesia.
Indonesian business environment heavily influenced by small-medium enterprise (SME). In embracing Industry 4.0, Indonesian SME must be able to adapt the changing environment and competitive landscape. However, the concept of competitive advantages of SMEs, especially when concerning digital transformation, yet to be clearly defined and evaluated within the industry. Several factors, directly or indirectly, affect and jointly determine the competitive strength of an individual firm. The challenge is to properly identify the specific factors, and how and to what extent they affect firm SME competitiveness. Thus, emerge the necessity to study, understand, and then identify those factors. This research seeks to answer the challenge by using a qualitative approach and the resource-based framework. Six variables discovered through studying state-of-the-art literature, namely Digital Capability, Digital Orientation, Digital Innovation, Resistance, and Government Support that connected with SME Competitiveness. The link between variables were clarified. Resulting in proposal of how those variables entwined with each other. All variables were found to be directly related to Competitiveness, with some of the relations were moderated by Digital Innovation.
Through the Structure and Performance approach, this research aims to analyze the structure and performance of the automotive industry in Indonesia. This research not only aimed to comprehensively analyze both quantitative and qualitative data using mixed method approach, but also explains the correlation between them. The study was conducted in a period of 10 years starting from 2007 to 2016. The result of the analysis shows that: (1) Indonesian automotive industry’s structure is tight oligopoly with the average score of market concentration ratio (CR3) in 2007–2016 is 87,30%, and the average score of MES in 2007–2016 is 71,34%; (3) The performance of the industry is “declining‟ with the ROA average score of Indonesian automotive industry throughout 2007–2016 is 5,97 %; and (4) there is a consistency element in the both research variables, which are structure and performance. It has been proven qualitatively (CR3-ROA is 65,5% & MES-ROA is 67%) and quantitatively (CR3-MES-ROA is 58,1%). Keywords: Industrial Economy, Structure, Performance, Automotive Industry. ABSTRAK Melalui pendekatan Struktur dan Kinerja, tujuan dari penelitian ini adalah untuk menganalisis struktur dan kinerja industri otomotif di Indonesia. Penelitian ini tidak hanya bertujuan untuk menganalisis secara komprehensif, baik data kuantitatif dan kualitatif menggunakan pendekatan metode campuran, tetapi juga menjelaskan korelasi di antara mereka. Periode pada penelitian ini adalah 10 tahun mulai 2007 hingga 2016. Hasil analisis menunjukkan bahwa: (1) Struktur industri otomotif Indonesia adalah oligopoli yang ketat dengan rata-rata nilai rasio konsentrasi pasar (CR3) pada tahun 2007-2016 adalah 87,30%, dan nilai rata-rata MES pada 2007–2016 adalah 71,34%; (3) Kinerja industri “menurun” dengan skor rata-rata ROA industri otomotif Indonesia sepanjang 2007–2016 adalah 5,97%; dan (4) ada elemen konsistensi dalam kedua variabel penelitian, yaitu struktur dan kinerja. Ini telah terbukti secara kualitatif (CR3-ROA adalah 65,5% & MES-ROA adalah 67%) dan secara kuantitatif (CR3-MES-ROA adalah 58,1%). Kata Kunci: Ekonomi Industri, Struktur, Kinerja, Industri Otomotif
Background: The telecommunication industry was one of the Indonesian government's priorities in the national development plan 2015-2035. “Primary Industry” was the term for the priority industries with the central role as the prime mover in the future national economy. Various natural, human, technological, innovative, and creative resources were imperative in supporting the underlining national industry development plan. Strategic innovation management refers to the entire sequence of innovation practices, including competition mechanism analysis, such as creating an innovative vision, business strategy alignment, disseminating strategy at an entire organizational level, market tendency, technology, and competitor’s action. Firm innovation performance refers to the measurement of innovation efficiency (the number of new products, product novelty, new product development speed, and new product success rate) and innovation profitability (new product revenue proportion, quality enhancement, cost reduction, and value improvement) conducted by the firm. This study investigates the effect of Innovation Strategy, Organizational Structure, Innovation Culture, Technological Capability, and Customer-Supplier Relationship (these were the practice of Strategic Innovation Management mentioned in various literature) on Firm Innovation Performance. Methods: A quantitative method, from a practical perspective, was employed to investigate the causal relationship between strategic innovation management and firm innovation performance. Data was gathered through a validated and reliable questionnaire disseminated to 90 respondents. It included a representative from the four sub-sectors of the telecommunication industry, namely fixed networks, wireless networks, telecommunication services, and special telecommunication. Results: The survey found that firms within the telecommunication industry already employed Strategic Innovation Management practices. Moreover, this study also found that Innovation Culture, Technological Capability, and Customer-Suppler Relationship significantly influence Firm Innovation Performance. Conclusion: The implementation of Strategic Innovation Management in the mid-size companies within Indonesia's telecommunication industry appears to be relatively high. It indicates that firms within the industry were able to strategically compete by implementing Strategic Innovation Management.
Digital innovation refers to innovations that take advantage of digital technology to obtain new results from digitalization. Currently the digital innovation process has been implemented in a competitive and cooperative setting. Cooperatives as social organizations are required to be able to follow environmental regulations by implementing digital innovation to accelerate national economic growth, reduce poverty levels, and support equitable distribution of people's income. The inability of cooperatives to adapt to meet needs and balance the era of the industrial revolution 4.0 will result in a downturn in cooperative management, such as what happened in 2017 where almost 40% of cooperatives in West Java were inactive. In digital innovation, digital capability are also needed to connect digital technology with professional digital talent. The purpose of this study is to identify and formulate a competitiveness model through digital innovation and capabilities with government support for cooperatives in Bandung. Primary data technique consists of distributing questionnaires, interviews and secondary data through literature studies. Keywords— Digital innovation; capabilities; competitiveness; cooperatives
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