Analysis of Digital Adoption Capability and Perceived Product Advantage on Network Externalities and Sustainable Business Growth on MLM in Indonesia

Abstract

The problems of the MLM industry in Indonesia include: MLM companies do not have strategic flexibility and sensitivity to dynamic markets. This study will determine the effect of Training and Development, Compensation and Reward System, Digital Adoption Capability and perceived Product Advantage on Network Externalities and Sustainable Business Growth. The method used in this study is a quantitative research method. The process of collecting data using a questionnaire is carried out once in a certain time span without repetition, namely one shoot cross-sectional, so that a total sample of 319 MLM companies is obtained. The results show that Training and Development has a positive effect on Sustainable Business Growth, Training and Development has a positive impact on Network Externalities, Compensation and Reward System has a positive effect on Sustainable Business Growth, Compensation and Reward System have a positive impact on Network Externalities, Digital Adoption Capability does not affect Sustainable Business Growth, Digital Adoption Capability has a positive effect on Network Externalities, perceived Product Advantages have no effect on Sustainable Business Growth, perceived Product Advantages have no effect on Network Externalities, and Network Externalities have a positive effect on the Company's sustainable business growth. The novelty of this research is that it is found that Research on the MLM Industry has continued to grow in the last 24 years but not significantly, the MLM business globally and nationally continues to grow. The number of articles is still very limited, so references in the MLM industry are limited. The contribution of this research is that MLM companies and their management teams also get additional references to develop a solid framework to increase the growth of sustainable MLM business in Indonesia.