NETWORK-BASED BUSINESS MODEL INNOVATION IN FASHION INDUSTRY IN INDONESIA, CASE STUDY: THE GOODS DEPT, INDONESIAN FASHION CHAMBER, AND ZALORA INDONESIA

• Main Author: Livia (NIM 19014140), Laurentia
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/22873
• Institution: Institut Teknologi Bandung

The role of collaboration within network in creating business model innovation has not been well acknowledged among fashion industry actors in Indonesia. One of the problems that obstruct thedevelopment of fashion industry in Indonesia is the lack of socialization and understanding of business model application. Many fashion industry actors in Indonesia are still unaware of the available networks they can join and use to develop their businesses. In fact, by taking part in a <br /> <br /> network, a company could acquire profitable relationship and decrease rivalry in the industry. Hence this research aims to fill the gap of knowledge of inadequacy of research discussing about business models that have network focus. The research methodology used is qualitative method, which applies case study method. To collect the data, the author used semi-structured interview and secondary data. The author selected <br /> <br /> three cases that represent each of the network type, which are vertical value net, horizontal value net, and multidimensional value net. The selected cases are The Goods Dept, Indonesian Fashion Chamber, and Zalora Indonesia. A case study protocol was used to seek an in-depth understanding of the particular phenomena, which are the network-based business model innovations that have been implemented in several networks in the fashion industry in Indonesia. The result shows that different characteristics of network, business model, and business model innovation, will lead to different value outcome. Vertical value net’s rigid network produces the least value outcomes. The strategies of its business model innovation are focusing on increasing profit. Then, horizontal value net has the most flexible network structure, governance, and behavior, yet, it causes the instability of the network. Lastly, the agreement-based network in multidimensional value net creates mutual benefit relationship with the partners. It also has the <br /> <br /> highest level of innovations and the most value outcomes. Nevertheless, the three cases show that <br /> <br /> collaborating within network brings many advantages, such as increasing profit, raising brand awareness, expanding business, and others.