International Journal of Advanced and Applied Sciences

Int. j. adv. appl. sci.

EISSN: 2313-3724

Print ISSN: 2313-626X

Volume 4, Issue 9  (September 2017), Pages:  61-69

Title: External environment impact on business performance in digital creative industry: Dynamic capability as mediating variable

Author(s):  Romat Saragih 1, *, Agus Rahayu 2, Lili Adi Wibowo 2

Affiliation(s):

1Faculty of Communication and Business, Univesitas Telkom, Bandung, Indonesia
2Faculty of Economics and Business Education, Universitas Pendidikan Indonesia, Bandung, Indonesia

https://doi.org/10.21833/ijaas.2017.09.008

Full Text - PDF          XML

Abstract:

All companies face the challenge on how to create a sustainable competitive advantage, especially in the rapidly changing business environment, which is dynamic and highly turbulent. Digital creative industry is an industry that combines elements of creative and digital in its products and services. Indonesia has great potential in the development of digital creative industry, since their digital creative actors are able to generate competitive creative contents. This study aims to explore the impact of dynamic capability as a mediator of business performance in the face of external environment changing in the digital creative industries in Indonesia. A total of 96 respondents participated in this study. This study used a quantitative method with survey approach. The analysis technique used is structural equation modeling (SEM) to test the hypothesis and SmartPLS 3.0 Program as a tool in data processing. This study looked at the dynamic capability as the emerging paradigm of modern business that drive sustained high performance in the rapidly changing environment. The limitation of this research is the scope of research which only covers some areas in Indonesia, so it is expected that further research can expand the area coverage. 

© 2017 The Authors. Published by IASE.

This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

Keywords: Business performance, Digital creative industry, Dynamic capability, External environment

Article History: Received 23 May 2017, Received in revised form 15 July 2017, Accepted 2 August 2017

Digital Object Identifier: 

https://doi.org/10.21833/ijaas.2017.09.008

Citation:

Saragih R, Rahayu A, and Wibowo LA (2017). External environment impact on business performance in digital creative industry: Dynamic capability as mediating variable. International Journal of Advanced and Applied Sciences, 4(9): 61-69

http://www.science-gate.com/IJAAS/V4I9/Saragih.html

References:

  1. Anggadwita G, Amani H, Saragih R, and Alamanda DT (2016). Competitive strategy of creative application content in ASEAN economic community: Software development using SWOT analysis in Indonesia. International Journal of Economics and Management, 10(S1): 95-107. 
  2. APJII (2016). Asosiasi Penyelenggara Jasa Internet Indonesia. Available online at: https://www.apjii.or.id/ 
  3. ASPILUKI (2017). Asosiasi Peranti Lunak Telematika Indonesia. Available online at: http://www.aspiluki.or.id 
  4. Beamish HR, Hubbard G, and Rice J (2008). Strategic management, thinking analysis action. Pearson Education Australia, Australia.     
  5. BPSI (2016). Statistic Publication Official. Badan Pusat Statistik Indonesia [Central Statistics Agency, Indonesia], Indonesia. Available online at: www.bps.go.id 
  6. Deshpandé R, Farley JU, and Webster Jr FE (1993). Corporate culture, customer orientation, and innovativeness in Japanese firms: A quadrad analysis. The journal of Marketing, 57(1): 23-37. https://doi.org/10.2307/1252055 
  7. Deshpandé R, Grinstein A, Kim SH, and Ofek E (2013). Achievement motivation, strategic orientations and business performance in entrepreneurial firms: How different are Japanese and American founders?. International Marketing Review, 30(3): 231-252. https://doi.org/10.1108/02651331311321981 
  8. Dess GG, Lumpkin GT, and Eisner AB (2006). Strategic management: Text and cases. Irvin/McGraw-Hill, New York, USA.     
  9. Eisenhardt KM and Martin JA (2000). Dynamic capabilities: What are they?. Strategic Management Journal, 21(10/11): 1105–1121. https://doi.org/10.1002/1097-0266(200010/11)21:10/11<1105::AID-SMJ133>3.0.CO;2-E 
  10. Evers N (2011). International new ventures in "low tech" sectors: a dynamic capabilities perspective. Journal of Small Business and Enterprise Development, 18(3): 502–528. https://doi.org/10.1108/14626001111155682 
  11. Felier P and Teece D (2014). Case study, dynamic capabilities and upstream strategy: Supermajor EXP. Energy Strategy Reviews, 3: 14-20. https://doi.org/10.1016/j.esr.2014.05.003 
  12. Fernández-Mesa A, Alegre-Vidal J, Chiva-Gómez R, and Gutiérrez-Gracia A (2013). Design management capability and product innovation in SMEs. Management Decision, 51(3): 547-565. https://doi.org/10.1108/00251741311309652 
  13. Ghozali I (2008). Structural equation modeling: Metode alternatif dengan partial least square (PLS). Badan Penerbit Universitas Diponegoro, Semarang, Indonesia.     
  14. Grant RM (2010). Contemporary strategy analysis. John Willey and Son Ltd., USA.     
  15. Gunter B, Furnham A, and Drakeley R (2016). Biodata (Routledge revivals): Biographical indicators of business performance. Routledge, Abingdon, UK.     
  16. Guo B and Wang Y (2014). Environmental turbulence, absorptive capacity and external knowledge search among Chinese SMEs. Chinese Management Studies, 8(2): 258-272. https://doi.org/10.1108/CMS-03-2014-0051 
  17. Hitt MA, Ireland RD, and Hoskisson RE (2012). Strategic management cases: Competitiveness and globalization. Cengage Learning Company, Boston, Massachusetts, USA.     
  18. Jaworski BJ and Kohli AK (1993). Market orientation: Antecedents and consequences. The Journal of Marketing, 57(3): 53-70. https://doi.org/10.2307/1251854 
  19. Kaplan RS and Norton DP (2006). Alignment: Using the balanced scorecard to create corporate synergies. Harvard Business Press, Boston, USA.     
  20. Lofsten H (2014). Product innovation processes and the trade-off between product innovation performance and business performance. European Journal of Innovation Management, 17(1): 61-84. https://doi.org/10.1108/EJIM-04-2013-0034 
  21. Mangematin V, Sapsed J, and Schüßler E (2014). Disassembly and reassembly: An introduction to the Special Issue on digital technology and creative industries. Technological Forecasting and Social Change, 83:1-9. https://doi.org/10.1016/j.techfore.2014.01.002 
  22. MIKTI (2016). Peta Industri Kreatif Digital 2015 Daerah Khusus Ibukota Jakarta. Indonesia Digital Creative Industry Community, Dinas Pariwisata DKI Jakarta, Jakarta, Indonesia. Available online at: mikti.id/     
  23. Mulyadi S (2003). Ekonomi sumber daya manusia dalam perspektif pembangunan. PT Raja Grafindo Persada, Jakarta, Indonesia.     
  24. Nieves J and Haller S (2014). Building dynamic capabilities through knowledge resources. Tourism Management, 40: 224-232. https://doi.org/10.1016/j.tourman.2013.06.010 
  25. Pearce JA and Robinson RB (2008). Formulation, implementation, and control of competitive strategy. McGraw-Hill, New York, USA.     
  26. Pelham AM (2000). Market orientation and other potential influences on performance in small and medium-sized manufacturing firms. Journal of Small Business Management, 38(1): 48-67.     
  27. Rothaermel FT (2015). Strategic management. McGraw-Hill Education, New York, USA.     
  28. Saragih R and Anggadwita G (2016). Strategy competitive for creating sustainable growth in software development in Indonesia: A conceptual model. Procedia-Social and Behavioral Sciences, 219: 668-675. https://doi.org/10.1016/j.sbspro.2016.05.049 
  29. Silalahi U (2012). Metode penelitian sosial. Refika Aditama, Bandung, Indonesia. PMid:22385854     PMCid:PMC3283773     
  30. Teece DJ, Pisano G, and Shuen A (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7): 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z 
  31. TEMPO.CO (2016). Industri Kreatif Sumbang Rp 642 Triliun dari Total PDB RI. Deputi Riset, Edukasi, dan Pengembangan Badan Ekonomi Kreatif [Education and Development Agency Creative Economy]. Available online at: https://m.tempo.co/read/news/2016/03/02/     
  32. Venkatraman N and Ramanujam V (1986). Measurement of business performance in strategy research: A comparison of approaches. Academy of Management Review, 11(4): 801-814.     
  33. Walker OC, Boyd HW, and Larreche JC (1996). Marketing strategy: Planning and implementation. Irwin Industrial Tools, Huntersville, USA.     
  34. Wheelen TL and Hunger DJ (2012). Strategic management and business policy, toward global sustainability. Pearson/Prentice Hall, Upper Saddle River, USA.     
  35. Wu Q, He Q, and Duan Y (2012). Explicating dynamic capabilities for corporate sustainability: Evidence from corporate social responsibility reports. In the British Academy of Management Conference, Cardiff, UK. Available online at: http://uobrep.openrepository.com/uobrep/handle/10547/264293     
  36. Zahra SA, Sapienza HJ, and Davidsson P (2006). Entrepreneurship and dynamic capabilities: A review, model and research agenda. Journal of Management Studies, 43(4): 917-955. https://doi.org/10.1111/j.1467-6486.2006.00616.x 
  37. Zollo M and Winter SG (2002). Deliberate learning and the evolution of dynamic capabilities. Organization Science, 13(3): 339–358. https://doi.org/10.1287/orsc.13.3.339.2780