From Old to New Ways of Working: How Technology and Autonomy Drive Productivity in Indonesia

From Old To New Ways Of Working, How Technology And Autonomy Drive Productivity In Indonesia: Unicorn Startups Postpandemic

The global startup ecosystem witnessed a remarkable surge and metamorphosis over the past decade, propelled by technological advancements, increased access to funding, and a worldwide shift toward innovation and entrepreneurship. With their pivotal role in economic development, startups create jobs, foster innovation, and drive competition. According to The Global Startup Ecosystem Report 2023 (Gauthier & Ortmans, 2023), Jakarta, the capital city of Indonesia, is brimming with potential. It emerges as one of the top 10 ecosystems by value, one of the top 10 by total early-stage funding amount, and an ecosystem that has birthed four or more unicorns in the last 10 years. Despite their potential, startups often face significant challenges that can hinder their growth and sustainability. According to the latest data, only up to 10% of startups survive beyond the initial years of their establishment (Howarth, 2023).

Indonesian startup companies face even more definite obstacles, as evidenced by the low survival rate (Kominfo, 2022). However, their resilience in the face of these challenges is commendable. The rapidly changing business environment and fluctuating market demand further complicate these difficulties. The pandemic has further complicated the landscape for Indonesian startups. While customer behavior has largely reverted to prepandemic patterns, leading to a decreased reliance on technology-based applications for daily needs, the repercussions for startups have been severe. Layoffs in startup and global technology companies have persisted, highlighting ongoing instability. Specifically, in 2024, the transportation sector has experienced the highest number of layoffs, with 18,587 workers, followed by the hardware sector, with 9,686 workers, and the retail sector, with 8,780 workers (Santika, 2024). Losing joiners have a long-lasting negative impact on firm size (Choi et al., 2023), implying that retaining competent human resources is crucial for startup productivity. These figures underscore Indonesian startups’ significant challenges, particularly in maintaining workforce productivity stability, and require deeper understanding and support.

The low survival rate of startups is associated with firm performance, which is influenced by various factors. Founding conditions, economic context, and early profitability are significant determinants of success, affecting survival and growth in startups (Fuertes-Callén et al., 2023). Motives for becoming an entrepreneur, such as opportunity, career ambition, and necessity, influence business outcomes such as survival, income, innovation, and expansion activities (Caliendo et al., 2023). Internal factors such as employee productivity (EP) also play a vital role in enhancing startup performance (Maliranta & Nurmi, 2019; Zakaria, 2022). Accelerated changes in the business landscape force many companies to adopt new practices to survive in the competition. Technology startup companies contribute to developing the “new work” framework, influencing it through innovative practices and technologies. They transition from “old work” to “new work” by embracing new work methodologies for efficiency (Holle et al., 2019). Adaptation to new ways of working (NWW) varies across industries. While the adoption of new work practices varies, some lack knowledge and others face implementation challenges (Timo Oladinrin et al., 2021).