Key to Digital Startup Performance: Role of Process innovation Capability and Government Support
Yuli Kartika Dewi a, Haniruzila Hanifah b, Teoh Ai Ping c, Yeong Yen Nee d

a, Universitas Ciputra (School of Management and Business, Universitas Ciputra, Indonesia)
b-d , Universiti Sains Malaysia (Graduate School of Business, Universiti Sains Malaysia, Penang Malaysia)

Abstract

The aim of this research is to highlight process innovation capability in its role to influence e-business performance and the role of government support strengthening the relationship between process innovation capability and e-business performance. E-business start-ups^ performance is crucial in improving the stability of economy because this type of business can move dynamically and can adapt quickly with technological advancement in the digital era. The ability to innovate has been widely discussed in previous studies and has been proven to be one of the important factors that can improve a company^s performance. Data was retrieved from 121 e-business start-up companies operating in Indonesia in less than 5 years. The survey was conducted through the dissemination of questionnaires via email and Google Form digital media and then processed using PLS software version 3.0. The findings show a strong relationship between process innovation capability and e-business startup performance but the existence of government support weaken those relation. This study performs measurement for process innovation capability, government support and e-business startup performance and expected to fill the gap in knowledge gained through literature review and bring up a new finding that enriches and complements the study of knowledge related to theories of competitive advantage, especially in the context of its association with the performance of e-business start-ups in developing countries.

Keywords: Process Innovation Capability, Digital Business, Government Support, E-business startup Performance

Topic: Business and Economic