Strategic Change Management Through Open Innovation in Indonesia’s Electricity Industry
DOI:
https://doi.org/10.38035/dijemss.v7i4.6375Keywords:
Strategic change management, Open innovation, Electricity industry, Cognitive modeling, Leadership, resource supportAbstract
Electricity companies in Indonesia face increasing pressure to manage strategic change amid regulatory complexity, capital intensity, and growing demands for innovation. This study aims to examine how strategic change management can be enabled through open innovation in Indonesia’s electricity industry. This study adopts an exploratory mixed-method approach combining qualitative cognitive modeling and quantitative regression analysis. The qualitative component captures dynamic interactions among key organizational factors, while the regression analysis provides empirical validation of the relationship between financing and leadership variables. The findings indicate a strong and statistically significant relationship between financing and resource support and leadership and management style, suggesting that leadership effectiveness during strategic change is highly dependent on resource availability. Cognitive modeling results further demonstrate that financial support acts as a key leverage factor that stabilizes change dynamics and enables the integration of open innovation practices. This study concludes that open innovation is most effective when embedded within a structured strategic change management framework supported by leadership commitment and adequate resources. The findings provide both theoretical contributions and practical implications for managers in regulated electricity industries, emphasizing the importance of financial allocation and leadership alignment in successfully implementing open innovation as a strategic change mechanism.
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