Increasing Business Performance in the Digital Era through Improving Business Models

Abstract

Objective - Recently, Indonesian companies have been facing a change in market behaviour due to the emergence of the digital era, in which a wide range of digital products have become a necessity in the lifestyle of Indonesian people. This situation calls for a strategic response by Indonesian companies in order to continue the sustainability of their business. One of these strategic responses is the improvement of business models. Methodology/Technique - This paper presents lessons learned from a number of companies in Indonesia that have successfully innovated and improved their business models. The research uses a mixed methodology, combining both quantitative and qualitative methods. Based on the findings, the research concludes that Indonesian market behaviours have been changing due to the emergence of the digital era. Those changes have encouraged many companies to innovate and improve their business models to ensure their company's business model fits with the changing market behaviour. The strategies discussed are effective in ensuring the growth and sustainability of Indonesian businesses. Findings - This study presents new findings on the environmental elements that affect business strategy, particularly socio-technology. It is the aspect of social behaviour that is stimulated by technological change. Novelty - The research also contributes to the development of the concept and knowledge of the digital economy. Type of Paper: Empirical Keywords: Digital Era; Business Model; Business Performance; Design; Innovation; Improvement. JEL Classification: L11, L25.