BRIDGING START-UPS AND INDUSTRY 4.0: EXPLORING INNOVATION STRATEGIES AND INNOVATION FACTORS FOR INTERNET-OF-THINGS (IOT)- BASED START-UPS IN INDONESIA

• Main Author: Rachmat Fauzan, Tribowo
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/57478
• Institution: Institut Teknologi Bandung

The Industry 4.0 phenomenon is truly remarkable in the industry's redesign and the transformation of a different factor of human life. This trend has also been put on several nations' national agendas, both emerging and developed, to improve competition in the global business arena. For Indonesia context, this phenomenon offers a chance to reshape Indonesia's manufacturing industry and become another way to boost Indonesia's goal of being the 10th world's largest economy. One of the technologies that play a significant role in this phenomenon is Internet-of-Things (IoT), which could boost small businesses' performance by developing its innovation ecosystem. While it is standard information that technology-based new enterprises innovate daily, there is no specific framework to explain the start-up innovation strategy and factors, particularly in emerging technologies such as IoT. As a result, the study's research question is: how is an IoT-based start-up in Indonesia executing its innovation? This research proposes an ongoing innovation strategy and explores innovation factors through case studies of functional IoT in Indonesian start-ups. To this end, we use an exploratory research methodology and semi-structured interviews from eleven start-ups to identify fundamental innovation strategies and factors to explore the process of connecting these attributes to innovation performance. It results that 'concept finding' is the central part when conducting innovation strategy. It also shows that two different kinds of IoT-based start-ups in Indonesia, Software as a Service and Infrastructure as a Service, will define how the innovation will occur. There are five main findings to influence the innovation performance: financial resources, government role, perception for supporting small businesses, hybrid research and development, and business model innovation. We also define how business model innovation and value chain analysis could increase IoT-based start-ups to leverage their competitive advantage. The theoretical and managerial implications and the study's limitations are discussed at the end of the article.