The Impact of Business Model Innovation on the Competitive Advantage of Technology Startups in Indonesia: A Study on Digital Service Platforms
Keywords:
Business Model Innovation, Competitive Advantage, Technology Startups, Digital Service Platforms, IndonesiaAbstract
Purpose: This study investigates the impact of Business Model Innovation (BMI) on the competitive advantage of technology startups operating in Indonesia’s digital service platform sector. In the context of Indonesia’s fast-growing digital economy, startups face intense competition and constant technological disruption, making business model innovation a critical strategic capability.
Subjects and Methods: Using a quantitative approach with data collected from 128 technology startups across sectors such as e-commerce, fintech, edtech, healthtech, and mobility services, this research employs Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze the relationship between BMI and competitive advantage.
Results: The results reveal that BMI has a significant and positive influence on competitive advantage (β = 0.736, p < 0.001), with value proposition innovation having the strongest impact, followed by value creation and value capture innovations. These findings align with the Dynamic Capabilities Theory and the Resource-Based View, highlighting BMI as a key driver of sustained competitive advantage in dynamic markets.
Conclusions: This study contributes to the growing literature on innovation in emerging economies and offers practical implications for startup founders, investors, and policymakers to prioritize continuous business model renewal as a pathway to competitive differentiation and long-term success.
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