The Influence of Digital Innovation, Human Resource Capability, and Business Orientation on Co-Creation Strategy of Digital Industry in Indonesia
Setyanto Hantoro- Dr Rano Kartono Rahim, B.IT., M.Bus.

Bina Nusantara University

Abstract

Indonesia^s digital economy is among the fastest growth within the region but the contribution of the digital economy in Indonesia on GDP is still relatively small compare to other countries (only 4%). To increase the contribution of Indonesia digital economy to GDP we need to increase the growth of this digital economy. Indonesia digital industry is faced with the challenges of an economic slowdown, a weakening labor market, and supply chain problems. With those challenges, there are many factors that determine the growth of Indonesia digital economy, one of it is the co-creation strategy that implemented on digital company. Co-creation strategy itself is an business strategy that is influenced by many factors both internal and external. Based on this background, this study aims to examine the influence of internal factors which are : digital innovation, human resource capability, and business orientation on co-creation strategy of digital company in Indonesia.
In line with the research objectives, the type of research used in this study is verification, namely to find out the relationship of each variable in the study by using a hypothesis. The unit of analysis in this study is digital companies in Indonesia and the unit of observation is the management of digital companies in Indonesia. Samples were taken from as many as 100 respondents. The research data was collected in a cross-section/one shoot, in 2023. Quantitative analysis was carried out using the Partial Least Square (PLS) approach.
The results of the study show that digital innovation, human resource capability, and business orientation have a significant effect on co-creation strategy of digital company in Indonesia. For digital companies in Indonesia today, the business orientation has a more significant role in formulating co-creation strategy. Based on these findings, the managerial implication of this research is to provide advice for management to further strengthen the development of business orientation in formulating and implementing co-creation strategy which is supported by the development of the digital innovation and human resource capability.

Keywords: digital innovation, human resource capability, business orientation, on co-creation strategy

Topic: Strategic Management, Entrepreneurship