Digital Platforms and Business Performance Determinants in Indonesian State-Owned Construction Companies

Purpose: This study examines the determinants of business performance through digital platform utilization in the marketing activities of Indonesian state-owned construction and infrastructure enterprises (BUMN). Specifically, it investigates the effects of product-market strategy, value co-creation, and marketing capability on digital platform adoption and business performance, with digital platforms as a mediating variable.
Research Methodology: A quantitative approach was employed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with SmartPLS. Data were collected through surveys involving 82 assistant managers, managers, and supervisors from eight BUMN construction companies in Indonesia using purposive sampling.
Results: The findings reveal that product-market strategy and marketing capability significantly influence digital platform adoption, while value co-creation does not. Product-market strategy, value co-creation, marketing capability, and digital platforms significantly enhance business performance. Digital platforms significantly mediate the relationship between product-market strategy and business performance as well as between marketing capability and business performance, but do not mediate the relationship between value co-creation and business performance.
Conclusions: Digital platforms serve as an important mechanism for improving business performance by strengthening strategic alignment and marketing capabilities within BUMN construction companies.
Limitations: This study is limited to BUMN construction companies, applies a cross-sectional research design, and does not consider moderating factors such as company size and project characteristics.
Contributions: This study contributes to digital transformation and strategic management literature by confirming the role of digital platforms as a partial mediating mechanism and providing practical insights for optimizing digital investment strategies in state-owned enterprises.