Purpose: This study aims to find out how to increase the competitive advantage of a company through the development of digital innovation that utilizes company resources optimally to improve business performance. Namely, the aim is to examine the effect of company resources on digital innovation and business performance, and the effect of company resources on business performance through digital innovation. Methods: This study uses a quantitative research approach. Observations were made in a cross-section/one shot in 2022. The population of this study was the ISP industry in Indonesia, which amounted to 474 companies, and the unit of observation was the management. Samples were taken from 240 respondents. This study used structural equation modeling (SEM) to test the causality correlational relationship between constructs. Results: The hypothesis testing shows that company resources have a significant direct effect on business performance, and company resources have a significant indirect effect on business performance through digital innovation. The indirect effect of company resources on business performance through digital innovation is more dominant than the direct effect of company resources on business performance. Conclusions: Improving business performance and competitive advantage will be better achieved by optimizing the utilization of the company’s existing resources to develop digital innovation, compared to directly increasing the company’s resources to improve business performance.
Purpose: The objective of this study is to examine the effect of company resources on digital innovation, collaboration strategy, and business performance, as well as the effect of company resources on business performance through digital innovation and collaboration strategy. Research Design: This study uses a quantitative research approach. Observations were made in a cross-section time horizon, in 2022. The Population of this study is the ISP industry, which amounted to 474 companies, and the unit of observation was the management. Sampling used stratified random sampling. ISPs are grouped based on the size of each company based on the number of customers and branch cities are divided into 3 groups: small, medium, and large. Samples were taken many as 100 respondents. Sampling from each classification is done randomly based on a list of population members. Testing the causality hypothesis in this study used PLS (Partial Least Square). Results: the hypothesis testing reveals that company resources play a significant role in developing digital innovation and collaboration strategies. Company resources do not significantly directly affect business performance, but significantly affect business performance through digital innovation and collaboration strategy. Findings: The study provided managerial implications for ISP company management in Indonesia, that collaboration strategy and digital innovation can increase the influence of the development and utilization of company resources on business performance so that companies no longer have to develop and own all of their resources independently. By elaborating their collaboration strategy and digital innovation, companies can focus on developing key resources and additional digital innovations needed to increase the company's competitive advantage. Limitation: the measurement of variables was carried out based on the management's perception of the conditions and situations faced during the COVID-19 pandemic in 2021-2022. To get a deeper understanding and truly describe the details of the empirical conditions, it is necessary to complement qualitative research through confirmatory and in-depth interviews.
Purpose: This study aims to examine during the Covid-19 pandemic situation in the ISP Industry in Indonesia, what is the effect of adapting to changes in the business environment on business performance and the effect of optimizing company resources to business performance, and which ones have a more dominant effect to business performance? Research Design: This study uses a quantitative research approach. Observations were made in a cross-section/oneshot, in 2022. The population of this study was the ISP industry, which amounted to 474 companies, and the unit of observation was the management. Sampling used stratified random sampling. ISPs are grouped based on the size of each company based on the number of customers and branch cities which are divided into 3 groups, namely: small, medium, and large. Samples were taken from as many as 100 respondents. Sampling from each classification is done randomly based on a list of population members. Testing the causality hypothesis in this study used Partial Least Square (PLS). Result: The hypothesis testing shows that both adapting the business environment and optimizing the company's resources have a direct significant effect on business performance. This study shows the results that optimizing a company's resources has a more dominant effect on business performance rather than adapting to changes in the business environment. Despite changes in the business environment, namely the weakening of the economy and the decline in people's purchasing power due to the covid-19 pandemic. Findings: The results of this study provide managerial implications for ISP companies in Indonesia that efforts to improve business performance can be done by optimizing and developing more adequate ownership of the company's resources and following by adapting to changes in the business environment. Optimizing and developing of company's resources needs to be prioritized over intangible resources then tangible resources. Efforts to adapt to the change in the business environment need to be prioritized on the macro-environment first then the micro-environment. On Business Performance, Company needs to prioritize achieving better ROIC, increase market share and asset growth, better ROA, and Ebitda Margin.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
customersupport@researchsolutions.com
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Copyright © 2025 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.