Platform Ecosystems for Smart Cities in Indonesia: Theory Building and Testing

Platform Ecosystems for Smart Cities in Indonesia: Theory Building and Testing

Restu Mahesa, Gatot Yudoko, Yudo Anggoro
DOI: 10.4018/978-1-7998-6477-6.ch020
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Abstract

This chapter aims to discover major constructs and proposing the model of platform ecosystems for Indonesia smart cities and applies the mixed methods research paradigm. The theory building uses inductive qualitative phase and literature review from global smart cities to suggest the hypothesized model. The pilot test has revealed a new construct “cultural systems” which is unique for the Indonesian context with high significance result. The final survey was followed by 1,021 respondents in six of Indonesia major cities, namely Medan, Jakarta, Semarang, Surabaya, Makassar, and Samarinda. The model testing in quantitative phase has investigated 12 hypotheses derived from the structural model. The investigation result reveals that 10 hypotheses are supported, and two hypotheses are rejected. Two constructs “political leadership” and “smart urban services” are confirmed to act as multiple mediating variables. The theoretical framework and propositions are claimed as the novelty of this research and extending the knowledge of urban sustainability.
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Introduction

Urbanization that presents a threat to urban sustainability has become a concern and topic of studies in various countries. Having occurred since the beginning of human civilization, urbanization continues to increase in the modern era. Consequently, cities in the world have become increasingly crowded.

This study is inspired by an intriguing phenomenon in the midst of increasing population density in urban areas. Urbanization has brought challenges, coming from the limited capacity of the environment and influencing social and economic aspects.

Smart cities in Indonesia lie in the richness of the Indonesian culture and the beauty of ethnic groups. The diversity of ethnic groups of Indonesian society is a cultural asset that is second to none in any nation in the world. Hundreds of these tribes inhabit thousands of archipelago islands, from Sabang to Merauke, along the equator, and from Mangas Island to Rote Island, along the longitude of North to South. The diversity of Indonesian society has an impact on the cultural pluralism of hundreds of ethnic groups in Indonesia. The motto Bhinneka Tunggal Ika (i.e., “unity in diversity,” but literally “out of many, one”) is the unifying foundation of the Indonesian nation.

Figure 1.

Map of 100 Indonesia Smart Cities Movement (Mahesa et al.,2020)

978-1-7998-6477-6.ch020.f01

In Indonesia, the culture is the indigenous valuable resources. The political leadership is one of the stakeholders who play a vital role as policymakers to address citizens’ preferences. In this study, the authors drew on Clark's (1981) and Lenski and Lenski's (1970) basic ideas to conceptualize smart cities as ecosystems in urban sustainability as guiding principles. In this view, the authors defined urban systems and cultural systems as independent variables. Smart urban services and political leadership are defined as mediator variables. The criteria or dependent variables are policy responsiveness and citizens’ preferences.

Therefore, the authors are raising a concern whether the concept of smart cities from the Western culture is suitable to be applied to cities in Indonesia as a way to achieve urban sustainability and whether the concept of smart cities can be immediately applied in Indonesia.

Key Terms in this Chapter

Platform: A specific class of technologies that have sponsors and complementors that interdependent.

Smart Cities: A representation of interconnected urban development as an inherent complex socio-technical system which interacting using the advancement of information and communication technology solutions and innovation to achieve a high quality of life.

Platform Ecosystems: A massive arena of innovations and interactions among stakeholders focuses on six primary variables consisting of Urban Systems, Cultural Systems, Political Leadership, Smart Urban Services, Citizen Preferences, and Policy Responsiveness.

Urban Sustainability: As the desired state in which the society strives to promote the integration of environment, economic development, and social equity in a sustainable urban form as a long-term approach through a strategic process.

Platform Ecosystems for Smart Cities: A conceptual framework of development where the contemporary cities transform from non-sanitary city to sanitary city by the stakeholders' collaboration to cooperate and build the interaction through communication, involvement, and intermediation on the platform using integrated approach to achieve urban sustainability.

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