THE INFLUENCE OF INDUSTRY ENVIRONMENT AND COMPANY ASSET ON STRATEGIC INNOVATION AND THE IMPLICATION ON BUSINESS VALUATION OF DIGITAL INDUSTRY IN INDONESIA

Abstract

Today’s value of Digital company overcome challenges from the products of the new digital and Over the Top (OTT) players that has become more integrated into customer’s lifestyle. The new digital and OTT players potentially degrading the value of existing Digital companies. This will contribute to the unoptimized value of today’s Digital companies that allegedly caused largely by Strategic Innovation aspect where has been the major capital of most digital players. This condition is also associated with the problems in the leveraging Company's Assets and strategy to adapt and align with Industry Environments as well. This study aims to assess the influence of the Industry Environment and Company Assets on Strategic Innovation and its implications on the Business Valuation of Digital industry in Indonesia. This research is conducted by using Quantitative Research approach. The unit of analysis is the Digital product companies in Indonesia, with the unit of observation is the management of the companies. Data collected through 200 samples. Structural Equation Modelling (SEM) is used as analytical and technical tool in this study. This research found Business Valuation of Digital Company in Indonesia is largely affected by the development of Strategic Innovation. Company Asset gives a greater influence in developing Strategic Innovation compares to Industry Environment. Company is now need a comprehensive strategy to leverage Company Asset to shape Strategic Innovation to maintain and grew the business value.
Keywords : Industry Environment; Company Asset; Strategic Innovation; Business Valuation.