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IJSTR >> Volume 8 - Issue 8, August 2019 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

The Role Of Alliances Formation In Organizational Ambidexterity And Firm Competitiveness: An Empirical Study In Indonesia Digital Startup Firms)

[Full Text]



Prio Utomo, Boto Simatupang



Alliances, Alliances Formation, Competitiveness, Organizational Ambidexterity, Exploitation, Exploration, Start-up



The creation of a country’s wealth depends on the competitiveness of its entrepreneurs and that fundamentally relies on the survivability and capabilities of its small and medium-sized enterprises (SMEs). In order to survive, an SME firm must become ambidextrous, with the capability to manage the paradox in learning, innovation, and transformation in their limited condition, so that they can become more competitive and offer products or services that meet the market demand. To become ambidextrous, a company needs many resources. One way to acquire resources is through alliances. This study models the relationship between alliances formation and firm competitiveness as mediated by organizational ambidexterity using partial-leased squares modelling using data from 137 startups in Indonesia. The results showed that organizational ambidexterity has a full mediation effect in the relationship between alliances formation and firm competitiveness. This study argues that the choice of an appropriate partner that is manifested in the Alliances Formation has the main purpose to enable the start-up company to acquire resources to manage the paradox of management in learning, innovation, and decision for transformation. This ability will make them competitive and can design, produce, and market its products superior to those of its competitors.



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