THE EFFECT OF CONTINUOUS RECONFIGURATION CAPABILITY ON DISRUPTIVE BUSINESS MODEL INNOVATION STUDY ON INDONESIA DIGITAL STARTUPS

Several studies have indicated that digital (tech) startups' behaviors tend toward disruptive business model innovation in facing volatility, uncertainty, complexity, ambiguity (VUCA) environment. One of the necessary capabilities to perform such innovation as well as to attain an excellent firm operational performance is continuous reconfiguration capability. This paper aims at examining the effect of continuous reconfiguration capability on disruptive business model innovation on Indonesia digital (tech) startups. This study applied a quantitative method with a partial least-squares structural equation modeling (PLS-SEM) approach to analyze the data obtained. The survey was used to understand the perceptions of Founders/C-Level out of 107 Indonesia startups. This study showed an essential contribution to the literature about the role of transformational capability viz continuous reconfiguration capability for digital (tech) startups as an initiator in executing disruptive business model innovation. The study recommends startups to have this capability that should be followed by determining strategic orientations, especially entrepreneurship orientation, market orientation, and technology orientation.