Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Abstract

The Implication of Business Partnership, Company Asset and Strategic Innovation to Business Valuation of Digital Industry in Indonesia

Author(s): Edi Witjara, Sulaeman R. Nidar, Aldrin Herwany, Setyanto P. Santosa

It was predicted that between 2013-2020 the revenue growth of global operator especially voice and data services would be decline. However, there will be an increase in automated (Non-Human intervention) data services and digital service (content, video, ecommerce, etc.). It also predicted that the presence of digital product in Telco will be able to recover negative revenue growth become positive one. Nevertheless, the business valuation of the digital companies is fluctuating within the last nine years due to the volatility caused by several factors. The poor valuation of digital industry is allegedly due to the implementation of strategic innovation has not been completely implemented. It is associated with problems in the development of the company's assets and business partnership that has been initiated. This study aims to assess the influence of company assets and business partnership on strategic innovation and its implications on the business valuation of digital industry in Indonesia. The study uses a quantitative approach with the analysis unit is digital companies in Indonesia. We are using 200 respondents that comprise of various strategic position personal of digital companies and processed the analysis by using simple random sampling technique. The results of the study has pointed out that strategic innovation has a greatest effect on business valuation. Strategic Innovation is mostly affected by company asset rather than business partnership. Company asset and business partnership effect on business valuation both directly and indirectly through Strategic Innovation.