The Innovation Revolution in Business Models in Indonesian Hybrid Organizations

Abstract

That business model innovation often does not occur because organizations cannot identify business models that are suitable for new technologies or solutions. Innovation revolution in business models in hybrid organizations in Indonesia. This research is a library research in the early stages of deepening hybrid organizations in Indonesia related to the revolution of innovation in a business model. Primary data sources used are research journals, on-line news, and legislation in Indonesia related to this research. It can be concluded that the innovation revolution in the business model of hybrid organizations in Indonesia is as follows: the conclusions of this paper are: Business models continue to be developed that affect innovations of hybrid organization-business models in Indonesia consisting of three organizational patterns, namely: cooperatives, MSMEs, and BUMDesa. The pattern of Indonesian cooperative organizations based on templates was developed from Europe. The pattern of MSME Organizations in Indonesia, in a template, is mirrored in the United States. Explanation of the BUMDesa organizational pattern is the marketisation of the non-profit sector, where nonprofit organizations are encouraged to focus on generating commercial revenue from service delivery contracts. The strengths of policies and operational processes in hybrid organizations in Indonesia are as follows: Law Number 25 of 1992 concerning Cooperatives, Law Number 20 of 2008 concerning Micro, Small and Medium Enterprises (MSMEs), and Law Number 06 of 2014 concerning villages.