MODEL DEVELOPMENT OF THE INFLUENCE OF DATA-DRIVEN ORIENTATION ON INNOVATION OUTCOMES

• Main Author: Dian Puteri, Brigitta
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/84852
• Institution: Institut Teknologi Bandung

Today, data is not only seen as a supporting element but also as an asset that can create significant competitive capabilities, so the ability to utilize and analyze data plays a vital role in company development. The COVID-19 pandemic, which has rapidly transitioned from traditional to digital markets, has forced companies to innovate in a changing market. With the rapidly evolving business environment, innovation has been identified as a necessary tool to survive in the market. The success of a company's competitiveness depends on the investment in digital technology and staff skills in using data so that the innovation outcomes are right on target according to customer needs and the market and can support company performance. The electricity sector has innovated by building an application for customers that is expected to support employee performance. With active users for five years at 22% compared to the total number of customers and the company's awareness of not being ready for disruptive technology, research needs to be conducted on the use of data. in this company to take strategic steps, one of which is to innovate. The company needs to integrate three data dimensions, namely human, technological, and managerial, to build a data-driven orientation that will impact innovation outcomes. With this orientation, companies can redefine their strategies by implementing a new intelligent culture that can redesign organizational structures, processes, and resource management, one of which is data, by knowing their current capabilities. In addition to the company's capabilities in the form of data-driven orientation that can foster innovation, companies need to have other capabilities to maintain their competitive advantage in the face of continuous changes in the market, technology, and other environmental factors, namely with dynamic capability. When a company has dynamic capability, the company can remain relevant and competitive in a changing market. The main objective of this study is to develop models of the influence of data-driven orientation on innovation outcomes. The specific objectives of this study are to determine the elements that form a company's ability to carry out data-based innovation and to analyze the mediation effect of dynamic capability on data-driven orientation and innovation outcomes. v Respondents in this study were organizational units represented by one respondent per unit. The total number of respondents in this study was 66 respondents. The collected data were tested using Partial Least Square Structural Modeling (PLS-SEM) with smartPLS 3.2.9 software. The study's results stated that data-driven orientation directly influences innovation outcomes through dynamic capability mediation. The elements that are significant to data-driven orientation are the human dimension and the technological dimension. One interesting finding from this study is that the manager dimension is insignificant to data-driven orientation in this company. This result may be affected by the company's culture and its captive market.