Environmental Turbulence Capability Sparks Firm Performance by Embracing Business Model Transformation: An Empirical Study on the Internet Industry in Indonesia

Abstract

This study assesses solutions to several questions regarding the effect of Environmental Turbulence on Firm Performance directly and indirectly through Business Model Transformation on Internet Service Provider Companies in Indonesia. The research approach used is an explanatory survey, verification research with a quantitative approach by measuring a sample of variables built on the population's constructs representing 239 companies. The author finds that novelty B.M. transformation design is significantly related to what factors drive the business transformation. Although, this study also finds that BMT positively mediates the relationship between environmental turbulence to influence performance. Environmental turbulence alone is no longer adequate, and organizations need to revamp the B.M. to achieve firm performance. This study also contributed to the movement of research trends targeted at B.M. Transformation. This study provides an appropriate riposte for quantitative empirical studies that elucidate the correlation between BMT on company performance by simultaneously embracing and managing environmental turbulence. The relationship between BMT and the factors that support it will be higher comprehend when contextualized. The author locates different designs and impacts of BMT on business transformation results that culminate in firm business performance since it faces an uncertain business environment that grows dynamically. Although this novelty is important, the authors found no support for effectiveness. However, this study highlights the robustness of the important factors that drive BMT to work effectively to improve business performance.