THE INFLUENCING FACTORS OF TECHNOLOGY READINESS TOWARD INNOVATION IN INDONESIA

• Main Author: Wijayanti Dual Arifin, Rifi
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/34821
• Institution: Institut Teknologi Bandung

The industrial revolution has driven the shifting towards to fourth industrial revolution (4IR) where countries in the world are paying more attention on technology and innovation. As the largest economy country in south-east Asia and to anticipating the new era of industrial revolution, Indonesia establishes the “Making 4.0 Program” in early 2018. This program is a reflection of the 4IR roadmap and strategy that involving various stakeholders and also to upgrading their competitive advantage. In regards to competitive advantage, from the corporate point of view, prior study stressed that innovation becomes one of the strategic options by understanding how the level of technology readiness and its engagement with innovation at corporate level, companies can develop programs that are right on target and to prevent companies from wasted time, customer dissatisfaction and loss of profit. This research aims to examine the influence factors of technology readiness towards innovation in Indonesia. The six latent variable encompasses of Technology Readiness (TR), Innovation (INV), Technology Competence (TC), Organization Resources (OR), Perceived Benefit (PB) and Environment Pressure (EP). By using a questionnaire survey, this study yields 100 respondent from private industries in Indonesia which analysed by using PLS-SEM. The result yields that the TC, OR, PB and EP has influencing technology readiness significantly and among those factors, EP has the highest influence into technology readiness. Also, technology readiness has a significant positive relationship with innovation. In this terms, firm need to address their technology readiness level and successfully surpass it before their move to commercialise. In general, this study provides theoretical and management contribution.