Abstract
Digital technology drives the changing more exponential across all industry. Telecommunication is one of industries that having significant impact of digital disruption. Thus, it become the issue for incumbent telecommunication company to sustain their future business. The incumbents require to re-inventing its strategy to anticipate the rapid changing in digital disruption. Two big challenges for incumbents are how to take the opportunity in digital disruption through innovation management? and how to accelerate internal digital transformation lead by digital leadership capability. This study aims to examine the effect of digital leadership and innovation management for incumbent telecommunication company in Indonesia in facing the digital disruption and transform into digital telco. This study uses quantitative method in incumbent telecommunication company in Indonesia with sample of 100 respondents. The statistical test used is Partial Least Square (PLS). The result of hypothesis testing found that both digital leadership and innovation management effect to sustainable competitive advantage, where the digital leadership have a greater influence in driving innovation management. This research has implication for incumbent telecommunication company in Indonesia in its effort to transform into digital telco and increase sustainable competitive advantage in disruptive era through strengthening the digital leadership and innovation management.
Highlights
The change in digital era drive the exponential changing across industry
This study aims to examine the effect of digital leadership and innovation management on sustainable competitive advantage in anticipating digital disruptive in telecommunication network industry in Indonesia
The findings of the research support the hypothesis that digital leadership and innovation management have an effect on the incumbent telecommunication companies in Indonesia in facing digital disruptive, which is digital leadership has a greater role than innovation management
Summary
The change in digital era drive the exponential changing across industry. Telecommunication is one of impacted industry due to the digital disruption. The incumbent firm required to find the new value poll in sustaining their competitive advantage through continuous innovation by means of internal development and technology partnership or investment in digital infrastructure. The technology is the tool to achieve objective but the important things was the development of digital leader to drive the transformation into digital company through investment in digital technology to create new market and leverage the firm performance. The study of the effect the digital leadership and innovation to sustain the competitive in digital disruptive has not been conducted, especially in unit analysis of telecommunication network company. This study aims to examine the effect of digital leadership and innovation management on sustainable competitive advantage in anticipating digital disruptive in telecommunication network industry in Indonesia. The discussion of framework in transforming into digital telecommunication will be presented
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