Building Competitive Advantage in Indonesia’s WealthTech Ecosystem: A Strategic Development Model

Abstract

This study develops a comprehensive competitiveness model for Indonesia’s WealthTech ecosystem by integrating Interpretive Structural Modeling (ISM) and MICMAC analysis. The research identifies and classifies 23 interrelated variables derived from SEM-PLS and NVivo analysis, of which 17 passed expert validation and were subsequently retained in the ISM–MICMAC structural model, including innovation capabilities, regulatory support, digital infrastructure, capital readiness, and customer trust, to evaluate their systemic roles in shaping competitive advantage. Through expert interviews, bibliometric analysis, and a structured modeling process, key independent drivers such as innovation capabilities, geopolitical events, and economic shocks were identified as foundational enablers. Linkage variables including digital transformation, strategic alliances, and cost leadership connect these enablers to dependent outcomes such as customer satisfaction and platform personalization. The resulting hierarchical framework and strategic roadmap offer actionable insights for policymakers, fintech stakeholders, and investors to enhance resilience, regulatory alignment, and ecosystem integration. This research not only fills a critical gap in the digital finance literature but also provides a strategic tool for advancing Indonesia’s WealthTech sector within the global financial landscape.