THE INFLUENCE OF ORGANIZATIONAL INNOVATION AND DIGITAL TRANSFORMATION ON FIRM PERFORMANCE OF FINANCIAL TECHNOLOGY (FINTECH) COMPANIES IN INDONESIA
Abstract
The current industrial environment is changing rapidly, including in Indonesia.
When the industrial environment changes rapidly and market competition becomes very
tight, dynamic capability is needed to adapt to environmental changes (Teece, Pisano, &
Shuen, 1997). When changes in the industrial environment occur, market uncertainty will
increase significantly, and thus, organizational innovation will be influenced by dynamic
capability (Pai & Chang, 2013). Innovation is considered a source of competitive
advantage for companies that can improve firm performance (Ahuja & Katila, 2001).
Firm performance is not only influenced by organizational innovation, but is also
influenced by digital transformation. Fintech has existed in Indonesia for decades, but,
in recent years, the fintech industry has succeeded in revolutionizing the way people
interact with financial services (AFPI, 2023). Therefore, this research will discuss the
influence of organizational innovation and digital transformation on the firm
performance of financial technology (fintech) companies in Indonesia.
Keywords: dynamic capability, organizational innovation, digital transformation, financial technology
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DOI: http://dx.doi.org/10.33021/icfbe.v0i0.5670
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