Title: The determinants of innovations and their impact on business performance in Indonesia during the Covid-19 pandemic

Authors: Anang Muftiadi; Ratih Purbasari; Raden Marsha Aulia Hakim; Richa Nahdalaily Fathara; Arbi Abdul Kahfi; Park Donghyun; Cynthia Petalcorin; Yothin Jinjarak

Addresses: Department of Business Administration, Universitas Padjadjaran Jalan Soekarno-Hatta, No. 21 District of Sumedang, Jawa Barat, 45363, Indonesia ' Department of Business Administration, Universitas Padjadjaran Jalan Soekarno-Hatta, No. 21 District of Sumedang, Jawa Barat, 45363, Indonesia ' Department of Business Administration, Universitas Padjadjaran Jalan Soekarno-Hatta, No. 21 District of Sumedang, Jawa Barat, 45363, Indonesia ' Department of Business Administration, Universitas Padjadjaran Jalan Soekarno-Hatta, No. 21 District of Sumedang, Jawa Barat, 45363, Indonesia ' Department of Business Administration, Universitas Padjadjaran Jalan Soekarno-Hatta, No. 21 District of Sumedang, Jawa Barat, 45363, Indonesia ' Asian Development Bank, 6 ADB Avenue, Mandaluyong City 1550, Metro Manila, Philippines ' Asian Development Bank, 6 ADB Avenue, Mandaluyong City 1550, Metro Manila, Philippines ' Asian Development Bank, 6 ADB Avenue, Mandaluyong City 1550, Metro Manila, Philippines

Abstract: Innovation drives growth. Thus, this research examines how economic sector configurations affect innovation and corporate success. It utilises a regression model based on Statistics Indonesia 2020-2021. The findings demonstrated that market structure strongly influences innovation. The gender mix of CEOs, domestic investment, company age of 5-10 years, and innovation division affect this innovative strategy. The 2020 COVID-19 pandemic reduced innovation to 29.7% from 32%. There are two sorts of innovation: product and process. 24% of organisations create new inventions domestically in 2020. Product innovation enhanced revenue and efficiency, whereas process innovation increased competitiveness. Market structure may be used to evaluate improvements in corporate governance, and economic sector innovations may affect business and economic development. Government policy may promote market competitiveness and domestic investment.

Keywords: business innovation; market structure; innovation performance; business governance; competitiveness; domestic investment; business performance.

DOI: 10.1504/IJMEF.2024.139030

International Journal of Monetary Economics and Finance, 2024 Vol.17 No.2/3, pp.146 - 159

Received: 09 Jul 2022
Accepted: 12 Jan 2023
Published online: 10 Jun 2024 *

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