Reawakening Digital Innovation and Collaboration Strategy: Strategies to Improve Business Performance

Purpose: The objective of this study is to examine the effect of company resources on digital innovation, collaboration strategy, and business performance, as well as the effect of company resources on business performance through digital innovation and collaboration strategy. Research Design: This study uses a quantitative research approach. Observations were made in a cross-section time horizon, in 2022. The Population of this study is the ISP industry, which amounted to 474 companies, and the unit of observation was the management. Sampling used stratified random sampling. ISPs are grouped based on the size of each company based on the number of customers and branch cities are divided into 3 groups: small, medium, and large. Samples were taken many as 100 respondents. Sampling from each classification is done randomly based on a list of population members. Testing the causality hypothesis in this study used PLS (Partial Least Square). Results: the hypothesis testing reveals that company resources play a significant role in developing digital innovation and collaboration strategies. Company resources do not significantly directly affect business performance, but significantly affect business performance through digital innovation and collaboration strategy. Findings: The study provided managerial implications for ISP company management in Indonesia, that collaboration strategy and digital innovation can increase the influence of the development and utilization of company resources on business performance so that companies no longer have to develop and own all of their resources independently. By elaborating their collaboration strategy and digital innovation, companies can focus on developing key resources and additional digital innovations needed to increase the company's competitive advantage. Limitation: the measurement of variables was carried out based on the management's perception of the conditions and situations faced during the COVID-19 pandemic in 2021-2022. To get a deeper understanding and truly describe the details of the empirical conditions, it is necessary to complement qualitative research through confirmatory and in-depth interviews.