Proceeding of the International Conference on Family Business and Entrepreneurship (ICFBF)
2022: Proceeding of 6th International Conference on Family Business and Entrepreneurship

The effect of strategic entrepreneurship on dynamic capabilities and organizational ambidexterity in improving innovation performance

Sony Eko Yanuar (University of Indonesia)
Avanti Fontana (University of Indonesia)



Article Info

Publish Date
22 Jul 2022

Abstract

PT Telkom Indonesia (Persero) Tbk is facing disruption that changes consumer behavior to communicate using online applications such as WhatsApp, Line, Telegram, and Slack, resulting in a decrease in demand and growth of company revenues since 2017. The disruption phenomenon requires Telkom to be able to produce innovations through startups that can become the main business for the company in the future. In improving innovation performance, companies need to adopt a process of strategic entrepreneurship that can build dynamic capabilities to improve innovation performance in a disruptive environment. For strategic entrepreneurship to run effectively, it requires organizational ambidexterity that has an organizational structure that can support the dual needs of opportunity-seeking (OSA) and advantage-seeking (ASA) activities. This study further examines the effectiveness of the influence of strategic entrepreneurship, dynamic capabilities, and organizational ambidexterity on innovation performance. The data in this study were obtained from a survey conducted to the top management of 62 startups that are part of the portfolio of PT Telkom Indonesia (Persero), then used PLS-SEM analysis to test the research hypotheses. The results show that strategic entrepreneurship influences dynamic capabilities, organizational ambidexterity, and innovation performance, but the dimension of entrepreneurial culture has a minimum effect or is not significant in influencing innovation performance in startups. This is contrary to the theory that strategic entrepreneurship has a relationship with innovation performance. This study provides intriguing findings and theoretical contributions in explaining the phenomenon of low innovation performance for startups that run organizational ambidexterity.

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Journal Info

Abbrev

ICFBE

Publisher

Subject

Economics, Econometrics & Finance

Description

International Conference on Family Business & Entrepreneurship (ICFBE) is a scientific international conference driven by the livelong aspiration of President University as a center of excellence, especially in the field of family business and entrepreneurship. The conference is organized by the ...