The Impact of Business Model Innovation on the Competitive Advantage of Technology Start-ups in Indonesia: A Study on Digital Service Platforms
Abstract
Purpose: This study aims to examine the impact of Business Model Innovation (BMI) on the competitive advantage of technology start-ups in Indonesia. As the country's digital economy expands, start-ups face intense pressure to differentiate themselves not only through technological novelty but also through innovative approaches in how they create, deliver, and capture value. This research evaluates the extent to which dimensions of BMI value creation, value delivery, and value capture contribute to sustaining long-term competitive advantage in highly dynamic market environments.
Subjects and Methods: Employing a quantitative descriptive-inferential methodology, the study surveyed 385 technology start-up founders, executives, and senior managers operating in major Indonesian innovation hubs, including Jakarta, Bandung, Yogyakarta, and Surabaya. Respondents were selected via purposive sampling, focusing on firms under 10 years old with scalable digital products or services. Data were collected through structured questionnaires and analyzed using descriptive statistics, Pearson correlation, and multiple linear regression to test the influence of each BMI dimension on competitive advantage indicators.
Results: The findings indicate that all three dimensions of BMI significantly and positively affect competitive advantage. Value creation had the strongest influence, followed by value capture and value delivery. Correlation and regression analyses confirmed the strong predictive capacity of BMI in enhancing firm differentiation, market responsiveness, and customer retention.
Conclusions: Business model innovation serves as a strategic mechanism for start-ups to secure and sustain competitive advantage in Indonesia’s rapidly evolving tech sector. Future research should explore sector-specific dynamics and integrate longitudinal analysis to capture the evolving role of BMI over time.
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