Adaptive strategies of external environmental effects in digital entrepreneurship in the strategic management perspective

Abstract

The rapid development of information technology and digitalization has formed a specification in the economic field, in the form of a digital creative economy. This economic cluster generally refers to entrepreneurship developed through the use of the internet and digital advancements to create business opportunities with excellence in the value of services and products. In strategic management, the development of technology that is widely adopted in company policy in improving service and product quality is an external element. In addition to having an extraordinary impact on consumption patterns, distribution and production, information technology is now able to become a fundamental instrument as the essence of creating value for products and services. This leads to a paradigm shift in the strategic management perspective, from the perception of technological externalities to internalities in value creation and policy making. This study seeks to identify shifts in the paradigm of the external environment of technology in contemporary business that develops ICT and the internet as the basis for digitalization and virtualization of exchanges of products, services and transactions between business actors. The results show that unlike conventional companies that respond to technological advances need technological advancements as an added value of their products and services, digital entrepreneurship uses technological advancements as a core part of product development and value creation. This study identifies important elements regarding adaptive strategies of external environmental effects in digital entrepreneurship. The results show that the shift in technological externalities to integrated digital entrepreneurship is capable of digitizing the creation of values and opportunities and operating digital-based businesses.