The Resiliency Of Business Model Innovation Of Indonesian Newspapers During Covid-19 Pandemic

Anton Wachidin Widjaja; Abdullah Sammy

doi:10.24912/jm.v26i1.831

Authors

Anton Wachidin Widjaja Faculty of Business, President University, Bekasi, Indonesia
Abdullah Sammy Faculty of Economics and Business, Universitas Indonesia, Depok, Indonesia

DOI:

https://doi.org/10.24912/jm.v26i1.831

Keywords: Covid-19 Pandemic; Corporate Entrepreneurship; Organizational Inertia; Business Model Innovation; Business Model Performance

Abstract

Newspaper business firms in Indonesia are facing difficult times both in keeping up with the advancement of digital technology and in dealing with the Covid-19 Pandemic. This study attempts to examine the effects of Covid-19 Pandemic, corporate entrepreneurship, and organizational inertia on the business model innovation and business model performance of Indonesian newspaper business firms. This study employs a quantitative method using structural equation modelling (SEM). Data were collected from surveys on 50 newspapers’ leaders in DKI Jakarta, West Java, Central Java, and East Java. This study showed that there were direct consequences of both Covid-19 Pandemic, corporate entrepreneurship, and organizational inertia on business model innovation. Covid-19 Pandemic was also found affecting corporate entrepreneurship. Business model performance as measured by short term performance was not affected by business model innovation. Business model innovation is needed to improve long-term company performance.

Author Biographies

Anton Wachidin Widjaja, Faculty of Business, President University, Bekasi, Indonesia

wachidin.anton@president.ac.id

Abdullah Sammy, Faculty of Economics and Business, Universitas Indonesia, Depok, Indonesia

alesakhiried@gmail.com

References

Ahlstrom, D., Arregle, J.L., Hitt, M.A., Qian, G., Ma, X., and Faems, D. (2020). Managing technological, sociopolitical, and institutional change in the new normal. Journal of Management Studies, 57(3), 411-437.

Ahlstrom, D., and Wang, L.C. (2021). Temporal strategies and firms’ speedy responses to COVID-19. Journal of Management Studies, 58(2), 592-596.

Akter, S., D’Ambra, J., and Ray, P. (2011). An evaluation of PLS based complex models: the roles of power analysis, predictive relevance and GoF index. Proceedings of the Seventeenth Americas Conference on Information Systems, Detroit, Michigan August 4th-7th.

Amit, R., and Zott, C. (2012). Creating Value Through Business Model Innovation. MIT Sloan Management Review, 53(3), 41-49.

Ammirato, S., Linzalone, R., and Felicetti, A.M. (2021). Business model innovation drivers as antecedents of performance. Measuring Business Excellence, https://doi.org/10.1108/MBE-01-2021-0012.

Burgers, J. H., and Covin, J. G. (2015). The contingent effects of differentiation and integration on corporate entrepreneurship. Strategic Management Journal, 37(3), 521–540.

Carvalho, D.M., Filho, E.G., and de Almeida,V.E. (2018). Organizational performance and strategic inertia: The case of a Brazilian heavy construction company. Revista de Gestão, https://doi.org/10.1108/REGE-11-2017-003.

Christensen, C.M., McDonald, R., Altman, E.J., and Palmer, J.E. (2018). Disruptive Innovation: An Intellectual History and Directions for Future Research. Journal of Management Studies, 55(7), 1-36.

Chyi, H.I., and Ng, Y.M.M. (2020). Still Unwilling to Pay: An Empirical Analysis of 50 U.S. Newspapers’ Digital Subscription Results. Digital Journalism, 8(4), 526-547.

Clauß, T. (2017). Measuring Business Model Innovation: Conceptualization, Scale Development and Proof of Performance, R&D Management, 47(3), 385-403.

Cucculelli, M., and Bettinelli, C. (2015). Business models, intangibles and firm performance: Evidence on corporate entrepreneurship from Italian manufacturing SMEs. Small Business Economics, 45, 329-350.

DaSilva, C. M., and Trkman, P. (2014). Business model: What it is and what it is not. Long Range Planning, 47, 379-389.

Ebersberger, B., and Kuckertz, A. (2021). Hop to it! The impact of organization type on innovation response time to the COVID-19 crisis. Journal of Business Research, 124, 126-135.

Eurich, M., Weiblen, T., and Breitenmoser, P. (2014). A six-step approach to business model innovation. International Journal of Entrepreneurship and Innovation Management, 18(4), 330-348.

Ferreras-Méndez, J.L., Fernández-Mesa, A., and Alegre, J. (2015). The relationship between knowledge search strategies and absorptive capacity: A deeper look. Technovation, 33(54), 48-61.

Foss, N.J., and Saebi, T. (2017). Fifteen years of research on business model innovation: how far have we come, and where should we go? Journal of Management, 43(1), 220-227.

Foss, N.J. (2020). The Impact of the Covid-19 Pandemic on Firms’ Organizational Designs. Journal of Management Studies, 58(1), 268-272.

Haggège, M., Gauthier, C., and Rüling, C.C. (2017). Business model performance: Five key drivers. Journal of Business Strategy, 38(2), 6-15.

Hair, J.F., Ringle, C.M., and Sarstedt, M. (2011). PLS-sem: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139-151.

Han, J., and Park, C. (2017). Case study on adoption of new technology for innovation: Perspective of institutional and corporate entrepreneurship. Asia Pacific Journal of Innovation and Entrepreneurship, 11 (2), 44-158.

Heikkilä, M., Bouwman, H., and Heikkilä, J. (2018). From strategic goals to business model innovation paths: an exploratory study. Journal of Small Business and Enterprise Development, 25(1),107-128.

Henseler, J., Ringle, C.M., and Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43, 115-135.

Huang, H.C., Lai, M.C., Lin, L.H., and Chen, C.T. (2013). Overcoming organizational inertia to strengthen business model innovation. Journal of Organizational Change Management, 26(6), 977-1002.

Hwang, E. H., Nageswaran, L., and Cho, S. H. (2020). Impact of COVID-19 on Omnichannel Retail: Drivers of Online Sales during Pandemic. Available at SSRN 3657827.

Jadhav, S. (2020). Impact of Covid-19 on Indian print media. Dogo Rangsang Research Journal, 10(6), 122-129.

Karimi, J., and Walter, Z. (2016). Corporate entrepreneurship, disruptive business model innovation adoption, and its performance: The case of the newspaper industry. Long Range Planning, 49, 342-360.

Kuratko, D.F., and Morris, M.H. (2018). Corporate entrepreneurship: A critical challenge for educators and researchers. Entrepreneurship Education and Pedagogy, 1(1), 42-60.

Kwong, K., and Wong, K. (2013). Partial Least Squares Structural Equation Modeling (PLS-SEM) Techniques Using SmartPLS. Marketing Bulletin, 24, Technical Note 1.

Lakens, D. (2013). Calculating and reporting effect sizes to facilitate cumulative science: a practical primer for t-tests and ANOVAs. Frontiers in Psychology, 4, 1-12.

Lambert, S. (2015). The importance of classification to business model research. Journal of Business Models, 3(1), 49-61.

Latifi, M.A., Nikou, S., and Bouwman, H. (2021). Business model innovation and firm performance: Exploring causal mechanisms in SMEs. Technovation, 107.

Monecke, A., and Leisch, F. (2012). SEM PLS: Structural Equation Modeling Using Partial Least Squares. Journal of Statistical Software, 48(3)

Moradi, E., Jafari, S.M., Doorbash, Z.M., and Ashraf Mirzaei, A. (2021). Impact of organizational inertia on business model innovation, open innovation and corporate performance. Asia Pacific Management Review, https://doi.org/10.1016/j.apmrv.2021. 01.003.

Nanda, A., Xu, Y., and Zhang, F. (2021). How would the COVID-19 pandemic reshape retail real estate and high streets through acceleration of E-commerce and digitalization? Journal of Urban Management, 10, 110–124.

Peric, M., Durkin, J., and Vitezic, V. (2017). The Constructs of a business model redefined: A half-century journey. SAGE Open, 7(3), 1-13.

Peterson, R.A., and Kim, Y. (2013). On the Relationship Between Coefficient Alpha and Composite Reliability. Journal of Applied Psychology, 98(1), 194-198.

Rinta-Kahila, T., Penttinen, E., and Nevalainen, A. (2016). Unfolding the Types of Organizational Inertia in Information Systems Adoption. 49th Hawaii International Conference 2016.

Shi, X., and Zhang, Q. (2018). Inbound open innovation and radical innovation capability: The moderating role of organizational inertia. Journal of Organizational Change Management, 31(3), 581-597.

Sparks, C., Wang, H., Huang Y., Zhao, Y., Lü, N., and Wang, D. (2016). The impact of digital media on newspapers: Comparing responses in China and the United States. Global Media and China, 1(3), 186-207.

Supadiyanto (2020). (Opportunities) Death of newspaper industry in digital age and Covid-19 pandemic. Jurnal The Messenger, 12 (2), 192-207.

van Barneveld, K., Quinlan, M., Kriesler, P., Junor, A., Baum, F., Chowdhury, A., Junankar, P.N., Clibborn, S., Flanagan, F., Wright, C.F., Friel, S., Halevi, J., and Rainnie, A. (2020). The COVID-19 pandemic: Lessons on building more equal and sustainable societies. The Economic and Labour Relations Review, 1-25.

Wang, Y., Hong , A., Li, X., and Gao, J. (2020). Marketing innovations during a global crisis: A study of China firms’ response to COVID-19. Journal of Business Research, 116, 214-220.

Winterhalter, S., Weiblen, T., Wecht, C.H., and Gassmann, O. (2017). Business model innovation processes in large corporations: insights from BASF. Journal of Business Strategy, 38(2), 62-75.

Wirtz, B., and Daiser, P. (2017). Business model innovation: An integrative conceptual framework. Journal of Business Models, 5(1), 14-34.

Zafri, N.M., Afroj, S., Nafi, I.M., and Hasan, M.U. (2021). A content analysis of newspaper coverage of COVID-19 pandemic for developing a pandemic management framework. Heliyon (7).

Zou, P., Huo Di., and Li, M. (2020). The Impact of the COVID-19 Pandemic on Firms: A survey in Guangdong Province, China. Health Research Policy and Systems, 5(41).