Having the Resilience to an Ever-Changing Business Environment Through Strategic Collaboration Supported by Digital Innovation

Abstract

Purpose-This research aims to find out how a company can be resilient to an ever-changing business environment through the development of collaboration strategies and digital innovation to improve business performance and to find out which is more dominant in adapting to an ever-changing business environment to improve business performance, whether collaboration strategies or digital innovations? Research Design-This research uses a quantitative approach. Observations were made in a cross-section/one-shot, in 2022. The population of this research was the ISP industry in Indonesia, which amounted to 474 companies, and the unit ofobservation was the top management. Samples were taken from as many as 240 respondents. Testing the causality hypothesis in this research used Structural Equation Modelling (SEM).Results -The results of this research indicate that the business environment has a significant indirect effect on business performance through collaboration and digital innovation strategies, while the direct influence of the business environment on business performance is not significant. The effect of mediating collaboration strategies on the relationship between the business environment and business performance is more dominant than the mediating effect of digital innovation. Conclusion -By developing and implementing digital collaboration strategies and digital innovation to adapt to an ever-changing business environment, making changes in the business environment does not have a direct effect on business performance, so companies will have the resilience to an ever-changing business environment the business environment, and because collaboration strategies have a more dominant influence than digital innovation, then companies should prioritize collaboration strategies that are supported and complemented by digital innovation.