Benchmarking of Innovation Capability in the Digital Industry

This paper applies dynamic capability theory as an approach to understand innovation strategies in the Indonesian creative digital content industry. Face to face interviews were conducted with five Indonesian digital content companies to show that their innovation capability consists of abilities to gather and develop ideas into marketable products before they are launched to the market. It is found that innovation capability is determined primarily by the quality of human resources who are capable to learn continuously and to follow the changing trend in technology. Their organization structures are not too rigid to avoid complex bureaucracy that can hold up their creativity. This paper is one of the first works that uses the dynamic capability approach to understand innovation capability in Indonesian creative digital content.