The Fit of Personality-Strategy-Environment and Business Performance

Abstract

The development of digital business in Daerah Istimewa Yogyakarta (DIY) Indonesia requires a very tight level of competition and proactive personality from digital entrepreneur. This research wants to focus on the importance of the entrepreneurs of digital start up to have the fit of strategy with their personality and the level of environmental uncertainty they faced. It is important so that there will be an improvement in the business. The number of sample in this research is 175 respondents from entrepreneurs of digital start up industry in DIY. Euclidean distance (ED) regression is the statistic technique recommended to solve the problem. This research finds that proactive personality and hostile environment in contingency have the fit of the innovation strategy that is implemented, so that the business performance can be increased. The interesting finding in this study is that the implementation of imitation strategy has fit with reactive personality, while benign environment also has the fit, but it doesn’t have an influence on business performance. The theory implication from this research is the importance to have fit of business strategy with contingency factor that affects it, so that it can have an impact toward the business performance of the company. The managerial implication of this research is expected to be able to contribute policies and strategies for the managers of digital companies to consider contingency that can affect them to make strategic decision related to the management of digital business in Indonesia.