The influence of strategic innovation management on firm innovation performance in the Indonesian mid-size telecommunication industry

Risris Rismayani; Bram Manuel; Umi Latifah

doi:10.12688/f1000research.121673.1

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Research Article

The influence of strategic innovation management on firm innovation performance in the Indonesian mid-size telecommunication industry

[version 1; peer review: 2 approved with reservations]

Risris Rismayani ¹, Bram Manuel², Umi Latifah¹

PUBLISHED 18 Aug 2022

Author details Author details

¹ School of Economics and Business, Telkom University, Jl. Telekomunikasi No. 1, Bandung, 40257, Indonesia
² PPM School of Management, Jl. Menteng Raya No. 9, Jakarta, 10340, Indonesia

Risris Rismayani
Roles: Conceptualization, Data Curation, Formal Analysis, Methodology, Supervision, Validation, Writing – Original Draft Preparation, Writing – Review & Editing

Bram Manuel
Roles: Conceptualization, Formal Analysis, Methodology, Validation, Writing – Original Draft Preparation, Writing – Review & Editing

Umi Latifah
Roles: Conceptualization, Data Curation, Formal Analysis, Methodology, Software, Visualization, Writing – Review & Editing

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Abstract

Background: The telecommunication industry was one of the Indonesian government's priorities in the national development plan 2015-2035. “Primary Industry” was the term for the priority industries with the central role as the prime mover in the future national economy. Various natural, human, technological, innovative, and creative resources were imperative in supporting the underlining national industry development plan. Strategic innovation management refers to the entire sequence of innovation practices, including competition mechanism analysis, such as creating an innovative vision, business strategy alignment, disseminating strategy at an entire organizational level, market tendency, technology, and competitor’s action. Firm innovation performance refers to the measurement of innovation efficiency (the number of new products, product novelty, new product development speed, and new product success rate) and innovation profitability (new product revenue proportion, quality enhancement, cost reduction, and value improvement) conducted by the firm. This study investigates the effect of Innovation Strategy, Organizational Structure, Innovation Culture, Technological Capability, and Customer-Supplier Relationship (these were the practice of Strategic Innovation Management mentioned in various literature) on Firm Innovation Performance.
Methods: A quantitative method, from a practical perspective, was employed to investigate the causal relationship between strategic innovation management and firm innovation performance. Data was gathered through a validated and reliable questionnaire disseminated to 90 respondents. It included a representative from the four sub-sectors of the telecommunication industry, namely fixed networks, wireless networks, telecommunication services, and special telecommunication.
Results: The survey found that firms within the telecommunication industry already employed Strategic Innovation Management practices. Moreover, this study also found that Innovation Culture, Technological Capability, and Customer-Suppler Relationship significantly influence Firm Innovation Performance.
Conclusion:
The implementation of Strategic Innovation Management in the mid-size companies within Indonesia's telecommunication industry appears to be relatively high. It indicates that firms within the industry were able to strategically compete by implementing Strategic Innovation Management.

Keywords

Firm Innovation Performance, Innovation Culture, Technological Capability, Customer and Supplier Relationship, Innovation Strategy, Organizational Capability

Corresponding author: Risris Rismayani

Competing interests: No competing interests were disclosed.

Grant information: This work was funded with Internal Research Grant from Telkom University, Indonesia, grant number KWR4.035/PNLT2/PPM-LIT/2021, received by Risris Rismayani.
The funders had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript.

Copyright: © 2022 Rismayani R et al. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

How to cite: Rismayani R, Manuel B and Latifah U. The influence of strategic innovation management on firm innovation performance in the Indonesian mid-size telecommunication industry [version 1; peer review: 2 approved with reservations]. F1000Research 2022, 11:956 (https://doi.org/10.12688/f1000research.121673.1) First published: 18 Aug 2022, 11:956 (https://doi.org/10.12688/f1000research.121673.1) Latest published: 09 Jan 2023, 11:956 (https://doi.org/10.12688/f1000research.121673.2)

Introduction

The telecommunication industry is one of Indonesia's most competitive and developing industries. It was claimed to be a prominent driver of the national economy.¹ Therefore, it ultimately contributes to the efficiency and effectiveness of the National Budget, local industry, employment, national governance, and social development in science and telematics.

Indonesia Ministry of Communication and Informatics stated in 2019 that the number of significant telecommunication firms in Indonesia was 216 entities.² Their service entails wired telecommunication service, the Public Switched Telephone Network (PSTN), and wireless telecommunication, including fixed wireless access (FWA), cellular network, and satellite network. Chief of Indonesia Telecommunication Association, Ririek Adriansyah, stated that by 2020 the telecommunication industry was able to show 7% positive growth.³

The Indonesian government body targeted the telecommunication industry as one of the priority industries to be developed in the government plan of national industry development 2015-2035.⁴ Within the report, the telecommunication industry development roadmap was separated into three phases: developing transmission-based telecommunication (radar and satellite) and smart mobile phones. The phases stipulate the development of requisite technologies, such as telecommunication and computation device integration, and high-speed wireless and optical infrastructure. Various resources are required to support industrial development, such as natural resources, human capital, innovation capability, and creativity, which ultimately lead to competitive industrial advantage.

Strategic Innovation Management refers to the whole innovative practice which involves competition mechanism analysis, such as creating an innovative vision, business strategy alignment, strategy dissemination to entire organization levels, market tendency, technology, and competitor actions. Since innovation became one of the primary resources required to develop the Indonesian telecommunication industry, this research aims to understand how strategic innovation management influences telecommunication firms’ innovation performance.

Research framework

This research aimed to investigate the influence of innovation strategy, organizational structure, technological capability, and customer-supplier relationship, shown as the common practices of strategic innovation management in literature on firm innovation performance.⁵ Figure 1 illustrates how the variables interact as the basis of research hypotheses development.

Figure 1. Research framework.

H1: Innovation strategy positively influences Firm Innovation Performance.

Various prior studies supported the first hypothesis.⁶^,⁷ One prior study found that Innovation strategy positively influences Firm Innovation Performance.⁵ Indicating that firms implementing innovation strategy would increase their innovation performance better than those who do not.

H2: Organizational structure positively influences Firm Innovation Performance

Organizational structure was the second variable of strategic innovation management studied. Akhter et al.⁸ support the notion that organizational structure influences organizational performance. Therefore, the second hypothesis to test in this research indicates that individuals would perform their task better and become more productive with a clear structure.

H3: Innovation Culture positively influences Firm Innovation Performance

Next, this study would like to examine the relationship between innovation culture with firm innovation performance. The connection was investigated in prior research that found that the organization's higher innovation perception would lead to higher firm performance.⁹ The same notion was used as the third hypothesis in this study.

H4: Technological Capability positively influences Firm Innovation Performance

The fourth hypothesis was supported by prior research examining the influence of technological capability on firms’ financial and competitive performance.¹⁰ The research categorized a firm’s technological capability into technology intensity and technology diversity, in which case both are found to positively influence a firm’s performance.

H5: Customer and Supplier Relationships positively influence Firm Innovation Performance

A recent study found that supplier and customer relationships became one of the critical factors in business competition.¹¹ Suggesting that firms should build, maintain, and engage better with their customer and supplier to excel in their industry.

Methods

Study design

This study employed a quantitative method with descriptive purpose. The study objects were the firms in the Indonesian telecommunication industry. Analysis was done on the organizational level. The study took place in 2021 with data collection taking place between April-July.

Population sample

The population of research objects in this study were the firms in the Indonesian telecommunication industry listed in Indonesian Ministry of Communication and Informatics (Kominfo). A total of 843 firms were found and categorized in Table 1.² The sample size was determined using Equation 1. With 10% margin of error, the formula resulted in a required sample size of 90 for the research.

(1)

Sample size = \frac{Population size}{(1 + Population size . {(margin of error)}^{2})}

Table 1. Indonesian telecommunication firms category and sample size.²

Firm category	Quantity	Sample size
Fixed Network	195	21
Wireless Network	21	2
Telecommunication Service	517	55
Special Telecommunication	110	12
TOTAL	843	90

(2)

Number of samples = \frac{Subpopulation quantity}{Population total quantity} \times Required number of samples

To ensure sample firms would be able to represent the industry subsector, a population proportional stratified random sampling technique was employed to obtain the required research samples using Equation 2. The firm categories were used as the basis for subpopulation determination. The sample size for each subpopulation is presented in Table 1. The sample firms amounted to the calculated sample size and were randomly selected out of the population list and described in Table 2.

Table 2. Research sample firms.²

No.	Firm category	Firm name
1	Fixed Network (Circuit Switch + Basic Telephony Service)	PT Len Telekomunikasi Indonesia
2		PT Aplikanusa Lintasarta
3		PT Wisuandha Network Globalindo
4		PT Bali Towerindo Sentra
5		PT Elang Mahkota Teknologi
6		PT Surya Teknika Pratama
7		PT Wahana Telekomunikasi Nusantara
8		PT Angkasa Komunikasi Global Utama
9		PT Adiwarta Perdania
10		PT Usaha Adi Sanggoro
11		PT Sarana Multimedia Akses Indonesia
12		PT Fiber Media Indonesia
13		PT Andal Berjaya Infomedia
14		PT Trisari Data Indonusa
15		PT Acehlink Media
16		PT Sarana Integrasi Prima
17		PT Alita Praya Mitra
18		PT Satkomindo Mediyasas
19		Amron Cinet
20		Powertel
21		Mortelindo
22	Fixed Network (Terrestrial, Trunking, Wireless Cellular, Wireless Satellite)	PT Pasific Satelit Nusantara
23		PT Agung Gumilang Perkasa
24	Telecommunication Service (Telephony added service, Internet service provider, Name address provider, Public internet, Data communication system)	PT Jakarta Infrastruktur Propertindo
25		PT Interlink Technology
26		PT Dayamitra Telekomunikasi (Mitratel)
27		PT Infomedia Nusantara
28		PT Quantum Tera Network
29		PT Batam Bintan Telekomunikasi
30		PT Anugrah Karunia Perkasa
31		PT Data Utama Dinamika
32		PT Centrin Online Prima
33		PT Mitra Telemedia Manunggal
34		PT Trans Indonesia Superkoridor
35		PT Uninet Media Sakti
36		PT Supra Primatama Nusantara
37		PT Rekasaja Akses
38		PT Bina Techindo Solution
39		PT Inti Bangun Sejahtera
40		PT Inovasi Infracom
41		PT Solusi Tunas Pratama
42		PT Tower Pertama Infrastructure
43		PT Jesnita Telekomindo
44		PT Shangkuriang Telekomunikasi Indonesia
45		PT Infrastruktur Cakrawala Telekomunikasi
46		PT Fastel Sarana Indonesia
47		PT LCK Global Kedaton
48		PT Gihon Telekomunikasi Indonesia
49		PT Sky Network Solution
50		PT Mandala Lintas Nusa
51		PT Winet Media Persada
52		PT Indosat Mega Media
53		PT Sunvon Communication Network
54		PT Palapa Media Indonesia
55		PT Media Alvina Sejati
56		PT Telio Inti Nusa
57		PT Tiwu Telu Online
58		PT Wireless Indonesia
59		PT Visi Telekomunikasi Infrastruktur
60		PT Primacom Interbuana
61		PT Sarana Cipta Komunikasi
62		PT Pasifiktel Indotama
63		PT Lima Menara Bintang
64		PT Cyberindo Aditama
65		PT Mega Artha Lintas Data
66		PT Technology Data Indonesia
67		PT Trimasindo Data Media
68		PT Rackh Lintas Asia
69		PT Lisar Internasional Networking
70		PT Khazanah Media Network Nusantara
71		PT Signal Indo Sukses
72		PY Yetoya Solusi Indonesia
73		PT Centratama Menara Indonesia
74		PT Julia Multimedia Nusantara
75		MAC Sarana Djaya
76		Indonet
77		Citranet
78		Uninet
79	Special Telecommunication	PT Trubaindo Coal Mining
80		PT Tereos FKS Indonesia
81		PT Global Makara Teknik
82		PT Arutmin Indonesia
83		PT Panca Amara Utama
84		PT Bumi Suksesindo
85		PT Suryaraya Rubberindo Industries
86		PT Inti Karya Persada Tehnik
87		PT Jawa Power
88		PT Citra Marga Nusaphala Persada
89		PT Indominco Mandiri
90		PT Saptaindra Sejati

Data collection

Data was gathered with a questionnaire containing 43 questions adapted from a prior study.⁵ A copy of the questionnaire can be found under Extended data.¹² The questionnaire was disseminated to sample firm representatives through company email, social media (Instagram and LinkedIn), and private message.

Bivariate Pearson technique were used to test the validity of the questionnaire. The questionnaire was disseminated to thirty respondents and tested with 5% degree of significance and R value of 0,361, resulting in 43 valid questions out of 47 total questions in the initial questionnaire. Consequently, the invalid question items were deleted from the questionnaire later disseminated to sample firms.

Data analysis

Descriptive analysis and structural equation model (SEM) analysis were used to analyze the data. This was used to measure the current implementation of measured variables.⁹ For each variables’ indicators, the result of respondents’ answers were divided by the ideal score of the questionnaire (score obtained when the respective maximum score answered each question). Afterward, the percentage score would be compared with the given category. A score between 25-43.75% meant the indicator was very lowly implemented; a score between 43.76-62.5% meant the indicator was lowly implemented; a score between 62.6-81.25% meant the indicator was highly implemented; Lastly, a score between 81.26-100% meant the indicator was very highly implemented.

To measure the correlation between variables, in order to determine significantly influencing variables, the Partial Least Square (PLS) method was chosen as the measurement method. This provides consistent and reliable results and can be applied to complex structural equation models with many constructs.¹¹^,¹³ With the absence of a requirement of normally distributed input data and a high requirement on sample size and distribution compared to covariance analysis.¹⁴^,¹⁵ The PLS model consists of two components: the measurement model (outer model) and the structural model (inner model). The outer model relates the observed manifest variable to the latent variable, while the inner model describes the relationship between latent variables in the SEM-PLS model.

The outer model's evaluation criterias comprise convergent validity, discriminant validity, and reliability. Convergent validity is how a measure is positively correlated with alternative measures of the same construct. High outer loadings on the constructs indicate that the related indicators have many similarities captured by the constructs.¹⁶ An acceptable value for convergent validity is if the loading factor value was higher than 0.7 and the average variance extracted (AVE) value was higher than 0.5.¹⁷ Discriminant validity is the extent to which a construct is utterly different from other constructs by empirical standards. It will be considered acceptable if the square root AVE is greater than the inter construct correlation coefficient.¹⁸ Lastly, reliability is measured through composite reliability (CR) with the criteria of CR > 0.7, which means it has high reliability.

The inner model evaluated by the value of R² and f.² The value of R² was used to measure the degree of change from the independent variable to the dependent variable. A higher R² value indicates a better predictive capability of the model. F² shows a change in the value of R² in the endogenous construct.¹² Changes in the value of R² indicate whether the exogenous construct has a substantive effect on the endogenous construct. If the value of f² < 0.02, then the effect of exogenous latent variable is insubstantial, 0.02 < f² < 0.15 is weak, 0.15 < f² < 0.35 is moderate and f² > 0.35 is a strong category.

Results

Table 3 summarizes the descriptive analysis of the respondents’ answers. For each studied variable, the total score obtained from the questionnaire was divided by the ideal score for the given question. They resulted in a percentage score on how each variable can achieve the desired score. The descriptive analysis result indicates that strategic innovation management has been highly implemented in Indonesia's telecommunication industry.

Table 3. Descriptive analysis result.

Variables	Score	Criteria
IS	99.80%	Very High
OS	96.80%	Very High
IC	90.90%	Very High
TC	97.90%	Very High
CSR	98.84%	Very High
FIP	94.46%	Very High

SEM-PLS analysis tested the hypotheses developed in this research through the conceptual model depicted in Figure 2. The model consisted of the measurement model (outer model) and structural model (inner model). In the outer model, we evaluate the convergent validity, discriminant validity, and internal consistency. At the same time, the inner model was evaluated using R² and coefficient path or T-values.

Figure 2. Conceptual framework.

Measurement model evaluation

The measurement model evaluated the validity and reliability of the model developed in this study. Loading factor, internal consistency (Cronbach’s α and composite reliability/CR), and the value of average variance extracted (AVE) were the criteria used to determine the convergent validity of this research instrument. At the same time, cross-loading value and Fornell-Lacker criterion were used to determine the discriminant validity of this research instrument.

The loading factor shows the correlation between an indicator score and to construct indicator score of the given construct. An indicator should be valid as a research instrument if the loading factor value is higher than 0.7.¹⁹ The development of variables indicators was iterated several times before finding valid research indicators described in Table 4.

Table 4. Loading factor result.

Variables	Indicators	Loading factors	Interpretation
IS	IS4	0.000	Valid
OS	OS5	0.926	Valid
OS	OS6	0.904	Valid
IC	IC1	0.757	Valid
	IC3	0.747	Valid
	IC4	0.832	Valid
	IC5	0.735	Valid
TC	TC4	0.845	Valid
TC	TC6	0.857	Valid
CSR	CSR1	0.848	Valid
CSR	CSR5	0.772	Valid
FIP	FIP2	0.793	Valid
	FIP4	0.810	Valid
	FIP6	0.781	Valid
	FIP12	0.733	Valid

Cronbach’s α and composite reliability (CR) were used as criteria to determine the reliability of research variables. Although Cronbach’s α was a frequent measurement used,²⁰ CR was the main criterion in this research considering CR does not assume the weight equality of each indicator. The result of Cronbach’s α and CR value of the research variables is shown in Table 5. The result indicates that the variables were internally consistent, considering the value of Cronbach’s α or CR was higher than 0.7.

Table 5. Internal consistency result.

Variables	Cronbach’s α	Composite reliability
Innovation Strategy	1.00	1.00
Organizational Structure	0.81	0.91
Innovation Culture	0.77	0.85
Technological Capability	0.62	0.84
Customer and Supplier Relation	0.48	0.79
Firm Innovation Performance	0.79	0.86

The last criteria to determine the research instruments' convergent validity was the value of average variance extracted (AVE). Table 6 shows the result of the AVE test for every research variable used. The AVE value of all research variables was higher than 0.5, indicating that the research instruments fulfill the criteria of convergent validity.

Table 6. AVE result.

Variables	Average Variance Extracted (AVE)	Interpretation
Innovation Strategy	1.00	Valid
Organizational Structure	0.84	Valid
Innovation Culture	0.54	Valid
Technological Capability	0.72	Valid
Customer and Supplier Relation	0.66	Valid
Firm Innovation Performance	0.61	Valid

The discriminant validity test of research instruments was conducted by observing the value of cross-loading of variable indicators. The cross-loading value shows the correlation of each construct from the same indicators and with the other indicators. A measurement model should be discriminantly valid if the correlation value within the same indicator is higher than the correlation value outside the indicator. The result cross-loading test of this research instrument is shown in Table 7. The bold numbers in the table mark the inter-indicator correlation. As the correlation value intra-indicator was higher than inter-indicator, these research instruments were found to fulfill the criteria to be discriminantly valid.

Table 7. Cross loading result.

	IS	OS	IC	TC	CSR	FIP
IS4	1.00	0.17	0.37	0.37	0.26	0.34
OS5	0.14	0.93	0.38	0.37	0.48	0.32
OS6	0.03	0.90	0.26	0.31	0.46	0.28
IC1	0.33	0.38	0.76	0.59	0.50	0.51
IC3	0.22	0.22	0.75	0.44	0.24	0.36
IC4	0.40	0.20	0.83	0.40	0.36	0.50
IC5	0.24	0.29	0.74	0.48	0.18	0.37
TC4	0.20	0.31	0.63	0.85	0.42	0.53
TC6	0.22	0.33	0.43	0.86	0.55	0.55
CSR1	0.15	0.53	0.39	0.49	0.85	0.53
CSR5	0.07	0.29	0.31	0.43	0.77	0.44
FIP2	0.25	0.38	0.50	0.57	0.52	0.79
FIP4	0.26	0.16	0.47	0.47	0.40	0.81
FIP6	0.25	0.32	0.47	0.48	0.46	0.65
FIP12	0.29	0.21	0.45	0.45	0.48	0.78

Lastly, the research instrument was tested using the Fornell-Lacker criterion to determine its discriminant validity. Table 8 shows the result of the test. The bold numbers were the square root value of AVE, while the numbers under them were the correlation value between the constructs. Because the square root value of AVE was higher than the correlation value, this research instrument should fulfill the criteria to be discriminantly valid.

Table 8. Fornell-Lacker criterion result.

	IS	OS	IC	TC	CSR	FIP
IS	1.00
OS	0.10	0.92
IC	0.40	0.35	0.77
TC	0.24	0.38	0.62	0.85
CSR	0.14	0.52	0.44	0.57	0.81
FIP	0.32	0.33	0.58	0.63	0.60	0.78

Structural model evaluation

The second test in evaluating the SEM-PLS model was its structural model (inner model). The structural model was evaluated by observing the value of R² for the dependent construct and the t-statistics value from the path coefficient test. The R² value indicates the variance of the dependent variable caused by independent variables. This research found that the R² value of the dependent variable amounted to 0.540. It indicated that 54% of changes in firm innovation performance were caused by strategic innovation management.

SEM-PLS model developed in this research was further evaluated by the f² value to determine the degree of effect for each studied variable. Table 9 describes the result of the f² test for each variable. The degree of effect indicated by the f² value was categorized as follows: a value between 0.02-0.14 was weak, a value between 0.15-0.34 was moderate, and a value higher than 0.35 was strong. This research found that only CSR had a moderate effect on FIP from the four independent variables, while the others had a weak effect on FIP.

Table 9. F² test result.

Independent variables	F²	Interpretation
Innovation Strategy	0.023	Weak effect
Organizational Structure	0.003	Weak effect
Innovation Culture	0.055	Weak effect
Technology Capability	0.093	Weak effect
Customer and Supplier Relationship	0.150	Moderate effect

Discussion

This research studied the effect of strategic innovation management on firm innovation performance under five research hypotheses, representing how the implementation of strategic innovation management influences firm innovation performance. Figure 3 shows the SEM-PLS model developed in this research. Furthermore, Table 10 describes the model's interpretation in testing the hypotheses. The rules of thumb used in this research were a hypothesis rejected if its path coefficient value was higher than 1.96 and the significance level (p-value) was higher than 0.05.

Figure 3. Research result model.

Table 10. Result of hypotheses testing.

Hypotheses	Path coefficient	P-values	Interpretation
H1: IS → FIP	1.286	0.203	Rejected
H2: OS → FIP	0.595	0.526	Rejected
H3: IC → FIP	2.156	0.02	Supported
H4: TC → FIP	2.585	0.012	Supported
H5: CSR → FIP	3.047	0.002	Supported

From the hypotheses test result presented in Table 10, we can conclude that innovation strategy as a research variable had no significant positive influence on firm innovation performance. Innovation strategy was the highest level of innovation practice that includes creating an innovative vision, business strategy alignment, strategy dissemination to entire organization levels, market tendency, technology, and competitor actions. Diving more into respondent characteristics, we could observe the probable cause of the test result. The absence of strategic implementation of innovation in the mid-size firms in the Indonesian telecommunication industry presumably became the source of our finding regarding the relationship between innovation strategy and firm innovation performance.

Next, the test results implied that organizational structure was not found to have a positive influence on firm innovation performance. Numerous firms within the Indonesian telecommunication industry were yet to have the capability of cross-functional responsibility. It was a novel capability to ensure strategic decision making, conflict resolution, and effective coordination in the innovation process.

On the other hand, a positive influence was implied from the test results between innovation culture towards firm innovation as research variables. The main concept of innovation in culture is creativity, openness, acceptance of new ideas, risk-taking attitude, and entrepreneurial mentality. Indonesian telecommunication firms promote risk-taking behavior, appreciate success, and are open to innovation by giving their employees a certain degree of independence to experiment.

The second accepted hypothesis was the positive influence of technological capability on firm innovation performance. Technological capability is defined as a firm's ability to conduct technical and business activities, including the efficient development of new products or processes, implying that the more firms develop their technological capability, the better they perform strategic innovation. Indonesian telecommunication firms have shown an excellent technological capability to answer customers’ needs. However, some could not maximize their capability due to their size and age.

Innovation drove firms to have a market-based perspective. Evaluating customers and suppliers as partners would allow firms to maximize efficiency in exploiting rare resources and developing current capabilities. Lastly, customer and supplier relationships were found to influence firm innovation performance positively. The Indonesian telecommunication industry is indicated to have shown excellent capability in managing their relationship with their customers and suppliers.

Conclusions

The implementation of strategic innovation management in the mid-size firms of the Indonesian telecommunication industry was high. In the overall response of 94 respondents it was found that they had been implementing strategic innovation management at almost 96%. The result of this research implies that the Indonesian telecommunication industry had the capability to compete strategically, by investigating their innovation strategy, organizational structure, innovation culture, technological capability, and customer and supplier relationship.

Data availability

Underlying data

Telkom University Dataverse: The Influence of Strategic Innovation Management on Firm Innovation Performance in Indonesian Mid-Size Telecommunication Industry. https://doi.org/10.34820/FK2/CDBQPC.¹²

This project contains the following underlying data:

- Questionnaire Design.tab (The design of the questionnaires distributed to respondents)
- Questionnaire Result.tab (Questionnaire responses)

Extended data

This project contains the following extended data:

- Blank Research Questionnaire.pdf (The blank version of the questionnaire distributed to respondents)
- Kuesioner Riset.pdf (The original Indonesian version of the questionnaire distributed to respondents)
Data are available under the terms of the Creative Commons Zero “No rights reserved” data waiver (CC0 1.0 Public domain dedication).

Ethical approval and consent

The authors declared that this work was approved by the Dean of School of Economic and Business Telkom University with letter No. 020/PNLT1/EB-DEK/2021.Written informed consent for publication of the participants’ details and/or their images was obtained from the participants.

Author contributions

Conceptualization, R.R., B.M., L.U.; methodology, R.R., B.M., L.U.; software, L.U.; data curation, R.R., L.U.; visualization, L.U.; validation, R.R., B.M.; analysis, R.R., B.M., L.U.; writing – original draft preparation, R.R., B.M.; writing – review & editing, R.R., B.M., L.U.; project administration, B.M.; supervision, R.R. All authors have read and agreed to the published version of the manuscript.

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12. Rismayani R: The Influence of Strategic Innovation Management on Firm Innovation Performance in Indonesian Mid-Size Telecommunication Industry. Telkom University Dataverse;2022. Publisher Full Text
13. Urbach N, Ahlemann F: Structural equation modeling in information systems research using partial least squares. Journal of Information technology theory and application. 2010; 11(2): 5–40.
14. Wahyuningtyas R, Disastra G, Rismayani R: Toward cooperative competitiveness for community development in Economic Society 5.0. Journal of Enterprising Communities: People and Places in the Global Economy. 2022. Publisher Full Text
15. Haryono S: Metode SEM untuk penelitian manajemen dengan AMOS 22.00, LISREL 8.80 dan Smart PLS 3.0. Jakarta:Badan Penerbit PT. Intermedia Personalia Utama;2016.
16. Hair JF Jr, Hult GTM, Ringle CM, et al.: A primer on partial least squares structural equation modeling (PLS-SEM). Sage Publications;2021.
17. Bagozzi RP, Yi Y, Phillips LW: Assessing construct validity in organizational research. Adm. Sci. Q. 1991; 36: 421–458. Publisher Full Text
18. Fornell C, Larcker DF: Evaluating structural equation models with unobservable variables and measurement error. J. Mark. Res. 1981; 18(1): 39–50. Publisher Full Text
19. Ermawati A: Pengaruh Brand Image dan Brand Trust Terhadap Purchase Decision Produk United. Agora. 2018; 6(2).
20. San WH, Von WY, Qureshi MI: The Impact of E-Service Quality on Customer Satisfaction in Malaysia. J. Mark. Inform. Syst. 2020; 3(1): 46–62. Publisher Full Text

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VERSION 2 PUBLISHED 18 Aug 2022

Author details Author details

¹ School of Economics and Business, Telkom University, Jl. Telekomunikasi No. 1, Bandung, 40257, Indonesia
² PPM School of Management, Jl. Menteng Raya No. 9, Jakarta, 10340, Indonesia

Risris Rismayani
Roles: Conceptualization, Data Curation, Formal Analysis, Methodology, Supervision, Validation, Writing – Original Draft Preparation, Writing – Review & Editing

Bram Manuel
Roles: Conceptualization, Formal Analysis, Methodology, Validation, Writing – Original Draft Preparation, Writing – Review & Editing

Umi Latifah
Roles: Conceptualization, Data Curation, Formal Analysis, Methodology, Software, Visualization, Writing – Review & Editing

Competing interests

No competing interests were disclosed.

Grant information

This work was funded with Internal Research Grant from Telkom University, Indonesia, grant number KWR4.035/PNLT2/PPM-LIT/2021, received by Risris Rismayani.
The funders had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript.

Article Versions (2)

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Published: 09 Jan 2023, 11:956

https://doi.org/10.12688/f1000research.121673.2

version 1

Published: 18 Aug 2022, 11:956

https://doi.org/10.12688/f1000research.121673.1

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© 2022 Rismayani R et al. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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Rismayani R, Manuel B and Latifah U. The influence of strategic innovation management on firm innovation performance in the Indonesian mid-size telecommunication industry [version 1; peer review: 2 approved with reservations]. F1000Research 2022, 11:956 (https://doi.org/10.12688/f1000research.121673.1)

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Open Peer Review

Version 1

VERSION 1

PUBLISHED 18 Aug 2022

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14

Reviewer Report 28 Nov 2022

Antonio Abreu, Instituto Superior de Engenharia de Lisboa (ISEL), Lisbon, Portugal

Approved with Reservations

https://doi.org/10.5256/f1000research.133565.r151866

The paper deals with a very interesting topic, and it included interesting ideas. In general, I appreciate the aims of this work. However, I have the following main concerns:

The research question is not well contextualized.

The paper deals with a very interesting topic, and it included interesting ideas. In general, I appreciate the aims of this work. However, I have the following main concerns:

The research question is not well contextualized.
The literature background is poor and underdeveloped.
The limitations of this work deserve a deeper discussion.

Is the work clearly and accurately presented and does it cite the current literature?

Partly
Is the study design appropriate and is the work technically sound?

Partly
Are sufficient details of methods and analysis provided to allow replication by others?

Partly
If applicable, is the statistical analysis and its interpretation appropriate?

Yes
Are all the source data underlying the results available to ensure full reproducibility?

Partly
Are the conclusions drawn adequately supported by the results?

Yes

Competing Interests: No competing interests were disclosed.

Reviewer Expertise: Industrial management

I confirm that I have read this submission and believe that I have an appropriate level of expertise to confirm that it is of an acceptable scientific standard, however I have significant reservations, as outlined above.

CITE

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18

Reviewer Report 28 Nov 2022

Ariful Islam, Putra Business School, University of Putra Malaysia (UPM), Serdang, Malaysia

Approved with Reservations

https://doi.org/10.5256/f1000research.133565.r147973

Try to upgrade your problem statement with more recent citations. The introduction section should include 4 to 6 latest references (2018 to 2022) from well known journals in the field and appropriate extracts from them to motivate the

Try to upgrade your problem statement with more recent citations. The introduction section should include 4 to 6 latest references (2018 to 2022) from well known journals in the field and appropriate extracts from them to motivate the researchers in the subject.
Put more focus on underlying theories of the study.
Develop your conclusion segment (Theoretical contributions + Practical implications + Recommendation)

Is the work clearly and accurately presented and does it cite the current literature?

No
Is the study design appropriate and is the work technically sound?

Partly
Are sufficient details of methods and analysis provided to allow replication by others?

Partly
If applicable, is the statistical analysis and its interpretation appropriate?

Yes
Are all the source data underlying the results available to ensure full reproducibility?

Yes
Are the conclusions drawn adequately supported by the results?

Yes

Competing Interests: No competing interests were disclosed.

Reviewer Expertise: Entrepreneurship, Innovation, Strategy, Small Business

I confirm that I have read this submission and believe that I have an appropriate level of expertise to confirm that it is of an acceptable scientific standard, however I have significant reservations, as outlined above.

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Version 2

VERSION 2 PUBLISHED 18 Aug 2022

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Reviewer Reports

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Version 2 (revision) 09 Jan 23			read
Version 1 18 Aug 22	read	read

Ariful Islam, University of Putra Malaysia (UPM), Serdang, Malaysia
Antonio Abreu, Instituto Superior de Engenharia de Lisboa (ISEL), Lisbon, Portugal
Yuen-Onn Choong, Universiti Tunku Abdul Rahman, Kampar, Malaysia

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Reviewer Report

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25 Sep 2023 | for Version 2

Yuen-Onn Choong, Faculty of Business and Finance, Universiti Tunku Abdul Rahman, Kampar, Malaysia

11 Views Cite this report Responses(0)

Approved With Reservations

Thank you for allowing me to review the paper entitled "The influence of strategic innovation management on firm innovation performance in the Indonesian mid-size telecommunication industry" Here are some suggestions to improve the paper:

Authors should provide a thorough explanation of why there is a need to examine this study and test the relationship between innovation management and innovation performance. What triggers the authors to conduct such a study? Thus, the introduction of the study needs further clarification to establish a strong rationale for the research. Please make a stronger case as to why your paper is needed and how you contribute to current academic discussion. You should be more convincing and use the current literature review to indicate the gap that needs to be closed. You have to explain why the gap matters. Why is the gap a real concern? What will go wrong if the gap is unaddressed? The authors need to explain better what is the main puzzle their research is addressing. I could not clearly understand what the gap in the literature is and how this research is helping us close this gap. Thus, better paper positioning is needed.
Authors should refer to relevant past studies to highlight deficiencies or gaps in the existing literature. The authors should offer a more comprehensive analysis of the limitations present in previous studies. By doing so, the author can provide valuable insights into how your own research diverges from and addresses those gaps. This will help establish the novelty and unique contributions of their study, especially the theoretical aspect.
The procedure of data collection needs to be elaborated further. The authors should explain in more detail how authors collected this data, how authors approached the respondents, and how authors identified participants for the survey study. This explanation should be reasonable and logical, avoiding exaggerations and providing a clear account of the steps taken in the data collection process.
I would suggest author structure the conclusion part of the manuscript as follows: (1) Discussion, (2) theoretical Implications, (3) practical implications, (4) Limitations and Future Research Recommendations, and (5) Conclusion.
There should be a standalone section for theoretical implications. What can you infer from the findings? This section should discuss the implications of the study's findings and how they contribute to the existing theoretical knowledge. Summarize the key findings and their relevance to the existing theoretical frameworks or models. Analyze how the findings align with or challenge current theoretical perspectives and concepts (service quality) related to all the key concepts of this study. Discuss any theoretical insights or advancements that the study provides and highlight how the findings contribute to a deeper understanding of the research area.
A standalone section for practical implication is required, the authors should provide valuable insights based on current practices and policies, supported by evidence from their research. To strengthen the practical implications, it is crucial to reference specific findings, data, or examples that demonstrate the validity and reliability of the recommendations. By incorporating this approach, the authors can offer concrete and actionable suggestions that have a solid grounding in their research findings.
Should have a standalone section for limitations and future research recommendations. In this section, the authors should conscientiously identify the potential weaknesses or limitations of the study and provide insightful suggestions for future research directions. By incorporating this standalone section, the paper will not only address its own

Is the work clearly and accurately presented and does it cite the current literature?

Yes
Is the study design appropriate and is the work technically sound?

Partly
Are sufficient details of methods and analysis provided to allow replication by others?

Partly
If applicable, is the statistical analysis and its interpretation appropriate?

Yes
Are all the source data underlying the results available to ensure full reproducibility?

Yes
Are the conclusions drawn adequately supported by the results?

Yes

Competing Interests

No competing interests were disclosed.

Reviewer Expertise

Behavioural studies, tourism studies and environmental behavioural studies

I confirm that I have read this submission and believe that I have an appropriate level of expertise to confirm that it is of an acceptable scientific standard, however I have significant reservations, as outlined above.

Respond to this report

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Reviewer Report

14 Views

28 Nov 2022 | for Version 1

Antonio Abreu, Instituto Superior de Engenharia de Lisboa (ISEL), Lisbon, Portugal

14 Views Cite this report Responses(0)

Approved With Reservations

The paper deals with a very interesting topic, and it included interesting ideas. In general, I appreciate the aims of this work. However, I have the following main concerns:

The research question is not well contextualized.
The literature background is poor and underdeveloped.
The limitations of this work deserve a deeper discussion.

Is the work clearly and accurately presented and does it cite the current literature?

Partly
Is the study design appropriate and is the work technically sound?

Partly
Are sufficient details of methods and analysis provided to allow replication by others?

Partly
If applicable, is the statistical analysis and its interpretation appropriate?

Yes
Are all the source data underlying the results available to ensure full reproducibility?

Partly
Are the conclusions drawn adequately supported by the results?

Yes

Competing Interests

No competing interests were disclosed.

Reviewer Expertise

Industrial management

I confirm that I have read this submission and believe that I have an appropriate level of expertise to confirm that it is of an acceptable scientific standard, however I have significant reservations, as outlined above.

Respond to this report

Responses (0)

Back to all reports

Reviewer Report

18 Views

28 Nov 2022 | for Version 1

Ariful Islam, Putra Business School, University of Putra Malaysia (UPM), Serdang, Malaysia

18 Views Cite this report Responses(0)

Approved With Reservations

Try to upgrade your problem statement with more recent citations. The introduction section should include 4 to 6 latest references (2018 to 2022) from well known journals in the field and appropriate extracts from them to motivate the researchers in the subject.
Put more focus on underlying theories of the study.
Develop your conclusion segment (Theoretical contributions + Practical implications + Recommendation)

Is the work clearly and accurately presented and does it cite the current literature?

No
Is the study design appropriate and is the work technically sound?

Partly
Are sufficient details of methods and analysis provided to allow replication by others?

Partly
If applicable, is the statistical analysis and its interpretation appropriate?

Yes
Are all the source data underlying the results available to ensure full reproducibility?

Yes
Are the conclusions drawn adequately supported by the results?

Yes

Competing Interests

No competing interests were disclosed.

Reviewer Expertise

Entrepreneurship, Innovation, Strategy, Small Business

I confirm that I have read this submission and believe that I have an appropriate level of expertise to confirm that it is of an acceptable scientific standard, however I have significant reservations, as outlined above.

Respond to this report

Responses (0)

[1] 1. Kementerian Perindustrian Indonesia: Analisis Perkembangan Industri Indonesia. Kementerian Perindustrian Indonesia;2020.Reference Source

[2] 2. Badan Pusat Statistik Indonesia: Statistik Telekomunikasi Indonesia. Badan Pusat Statistik Indonesia;2019.Reference Source

[3] 3. Setiawan K: Industri Telekomunikasi Diprediksi Tumbuh 7 Persen, Ditopang Data - Bisnis Tempo.co. Tempo.co;2020. (accessed Mar. 30, 2022).Reference Source

[4] 4. Kementerian Perindustrian Indonesia: Rencana Induk Pembangunan Industri Nasional 2015-2035. Kementerian Perindustrian Indonesia;2015.Reference Source

[5] 5. Kalay F: The impact of strategic innovation management practices on firm innovation performance. Pressacademia. Sep. 2015; 2(3): 412–412. Publisher Full Text

[6] 6. Chen Q, Wang C-H, Huang S-Z: Effects of organizational innovation and technological innovation capabilities on firm performance: evidence from firms in China’s Pearl River Delta. Asia Pac. Bus. Rev. Jan. 2020; 26(1): 72–96. Publisher Full Text

[7] 7. Kim H, Kim E: How an Open Innovation Strategy for Commercialization Affects the Firm Performance of Korean Healthcare IT SMEs. Sustainability. Jul. 2018; 10(7): 2476. Publisher Full Text

[8] 8. Akhter N, Rafique A, Rafiq I, et al.: Organization structure and firm performance in financial development for perspective in Coca Cola beverages in Pakistan. Int. Rev. Manag. Bus. Res. 2016; 5(2): 494.

[9] 9. Al Kabi S, Almarri K: The mediating effects of innovation culture on leadership traits, leadership style, and firm performance. Aust. J. Basic & Appl. Sci. 2019. Publisher Full Text

[10] 10. Park JH, Chung H, Kim KH, et al.: The Impact of Technological Capability on Financial Performance in the Semiconductor Industry. Sustainability. Jan. 2021; 13(2): 489. Publisher Full Text

[11] 11. Iqbal A, Hayat M: Supplier firm and customer firm relationship on the performance of working capital management. International Journal of Finance, Insurance and Risk Management. 2020; X(3): 53–65.

[12] 12. Rismayani R: The Influence of Strategic Innovation Management on Firm Innovation Performance in Indonesian Mid-Size Telecommunication Industry. Telkom University Dataverse;2022. Publisher Full Text

[13] 13. Urbach N, Ahlemann F: Structural equation modeling in information systems research using partial least squares. Journal of Information technology theory and application. 2010; 11(2): 5–40.

[14] 14. Wahyuningtyas R, Disastra G, Rismayani R: Toward cooperative competitiveness for community development in Economic Society 5.0. Journal of Enterprising Communities: People and Places in the Global Economy. 2022. Publisher Full Text

[15] 15. Haryono S: Metode SEM untuk penelitian manajemen dengan AMOS 22.00, LISREL 8.80 dan Smart PLS 3.0. Jakarta:Badan Penerbit PT. Intermedia Personalia Utama;2016.

[16] 16. Hair JF Jr, Hult GTM, Ringle CM, et al.: A primer on partial least squares structural equation modeling (PLS-SEM). Sage Publications;2021.

[17] 17. Bagozzi RP, Yi Y, Phillips LW: Assessing construct validity in organizational research. Adm. Sci. Q. 1991; 36: 421–458. Publisher Full Text

[18] 18. Fornell C, Larcker DF: Evaluating structural equation models with unobservable variables and measurement error. J. Mark. Res. 1981; 18(1): 39–50. Publisher Full Text

[19] 19. Ermawati A: Pengaruh Brand Image dan Brand Trust Terhadap Purchase Decision Produk United. Agora. 2018; 6(2).

[20] 20. San WH, Von WY, Qureshi MI: The Impact of E-Service Quality on Customer Satisfaction in Malaysia. J. Mark. Inform. Syst. 2020; 3(1): 46–62. Publisher Full Text

The influence of strategic innovation management on firm innovation performance in the Indonesian mid-size telecommunication industry

Abstract

Keywords

Introduction

Research framework

Figure 1. Research framework.

Methods

Study design

Population sample

(1)

Table 1. Indonesian telecommunication firms category and sample size.2

(2)

Table 2. Research sample firms.2

Data collection

Data analysis

Results

Table 3. Descriptive analysis result.

Figure 2. Conceptual framework.

Measurement model evaluation

Table 4. Loading factor result.

Table 5. Internal consistency result.

Table 6. AVE result.

Table 7. Cross loading result.

Table 8. Fornell-Lacker criterion result.

Structural model evaluation

Table 9. F2 test result.

Discussion

Figure 3. Research result model.

Table 10. Result of hypotheses testing.

Conclusions

Data availability

Underlying data

Extended data

Ethical approval and consent

Author contributions

References

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Table 1. Indonesian telecommunication firms category and sample size.²

Table 2. Research sample firms.²

Table 9. F² test result.