| Sumario: | Many studies have investigated how incumbents react to disruptive business model innovation. However, how digital (tech) startups as the initiator performs business model innovation that consciously or not disrupts incumbents from various industries, has not yet been widely analyzed empirically. This study employed a quantitative method with Partial Least Squares-Structural Equation Modeling (PLS-SEM) using SmartPLS 3 software to present and analyze the data. The sample of Indonesia digital startups was taken from the list managed by DailySocial, an Indonesia digital media startup. A self-administered questionnaire was distributed among the Founders and or C-Level of Indonesia startups adopting a random sampling technique. The findings of this study showed that startups apply disruptive business model innovation to survive and scale-up. This study also suggested some predictors of disruptive business model innovation. As an alternative to implementing dynamic capabilities, startups need to have transformation capability in the form of continuous reconfiguration capability; leadership aspects, especially entrepreneurship mentality, which are embodied in strategic orientation; and stakeholder management support.
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