Digital Transformation Drives Competitiveness and Business Performance in Indonesia

Newztube - Digital transformation has become a critical element in maintaining business competitiveness and sustainability amid an era of rapid technological disruption. As technology evolves and consumer behavior shifts, companies that fail to adapt face the real risk of losing relevance and eventually, market share.

In Indonesia, for instance, several malls and retail centers have begun to experience profit declines as more consumers shift toward online shopping. According to Kompas.com, GS Supermarket—a South Korean retail chain—announced the closure of all its stores in Indonesia by the end of May 2025. Similarly, LuLu Hypermarket, a major retailer from the Middle East, had already ceased operations earlier. These developments highlight that responsiveness and agility in adopting digital technology are no longer optional, they are fundamental requirements for business survival.

Recognizing this urgency, Sonny Sintong Panutur, a telecommunications professional and doctoral researcher in Management and Entrepreneurship, conducted an academic study examining the factors influencing digital transformation and its impact on corporate performance across the retail, ICT, and financial sectors in Indonesia. His doctoral defense took place at Prasetiya Mulya University, Cilandak Campus, on October 20, 2025.

Sonny’s research further explores the role of organizational agility and consumer participation as moderating variables that strengthen the positive impact of digital transformation on business outcomes. Using a sequential mixed-methods approach (quantitative–qualitative), data were collected from 207 corporate respondents via online surveys and analyzed with PLS-SEM using Smart PLS software.

The findings revealed that technology, human resources, and environmental factors significantly contribute to successful digital transformation, ultimately improving operational efficiency, innovation performance, and profit growth.

“Digital transformation is not merely about adopting the latest technologies—it’s about changing how organizations think, strategize, and innovate. Organizational agility is the heart of a company’s ability to survive and grow amid uncertainty,” said Sonny Sintong Panutur, doctoral candidate at Prasetiya Mulya University.

Organizational agility emerged as a partial mediator, amplifying the positive effects of digital transformation on corporate performance. Moreover, consumer participation was found to play a crucial role in strengthening the relationship between digital transformation and innovation outcomes.

Dr. Agus Salim, CFA, Vice Dean I of the School of Business and Economics and Chair of the Doctoral Defense Committee, remarked:

“Sonny Sintong’s research makes a significant contribution to the development of entrepreneurship and management studies—both academically and practically. Given his professional background in technology, this study enriches our understanding of how digital transformation requires not only technological readiness but also human capability and supportive policies for organizational adaptability.

Meanwhile, Indrawan Ditapradana, Director of Human Capital Management at Telkomsel, who attended the defense session, noted the practical relevance of Sonny’s findings for the domestic market.

“Many companies have invested heavily in new technologies but neglected agility and consumer engagement—both of which are critical for achieving effective digital transformation and performance growth,” he said.

By integrating organizational agility and consumer participation within the digital transformation framework, this research offers valuable insights into optimizing digital strategies to drive business success. It also contributes to the broader understanding of the relationship between digital transformation and corporate performance.

Through this academic contribution, Prasetiya Mulya University reinforces its commitment to producing not only outstanding graduates but also impactful research that addresses real-world industry challenges and delivers tangible solutions for businesses across Indonesia.