Title: The challenges of competition and the creation of value for the Indonesian digital creative sector

Authors: Muhammad Awaluddin; Ernie Tisnawati Sule

Addresses: Universitas Padjadjaran, Jl Dipati Ukur No. 35, Bandung, Indonesia ' Universitas Padjadjaran, Jl Dipati Ukur No. 35, Bandung, Indonesia

Abstract: Currently, the creative industry that grows rapidly are digital technology-based creative industry and digital creative industry (DCI). The growth of DCI's business profit in Indonesia has not been in line with expectations; due to business performance tends to be fluctuating. The decline of business performance is allegedly because the company has not been able to formulate and implement competitive strategies. Phenomenon indicator is that the value provided to customers is smaller when compared with the value given by its competitors (inferior customer value), thereby weakening the competitive position of the company. The power of competition in the industry is still low, it is shaped by the power of new entrances, the power of distributors and consumers, the power of substitute products, the power of supplier, the power of competitor and government intervention. This research aims to assess the effect created by digital creative industry competitive forces and value creation toward competitive strategy, simultaneously or partially and implications to DCI's sustainable business performance in Indonesia. This research is designed using mixed methods research (MMR) with sequential explanatory approach and suggests a model to achieve sustainable business performance in the digital creative industry.

Keywords: value creation; competition; creative sector; Indonesian digital; Indonesia.

DOI: 10.1504/IJBG.2017.10005603

International Journal of Business and Globalisation, 2017 Vol.19 No.1, pp.145 - 166

Received: 19 Nov 2015
Accepted: 09 Jun 2016

Published online: 12 Jul 2017 *

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