Due to market changes in the digital era, we argue that innovation based on dynamic capability is accelerated when aligned with market orientation. Digital leadership will significantly enable sensing market changes, seizing opportunities, and reconfiguring organizations. Previous studies on digital leadership, dynamic capability, and innovation management focus mainly on constructs, benefits, and implications. However, a study on the role of digital leadership based on dynamic capability in fostering innovation and the impact of market orientation have not been thoroughly explored, which is the aim of this study, taking market orientation as a moderating variable. Employing a quantitative methodology, data were collected through online questionnaires, distributed through email and messaging applications to a purposive sample of 88 senior managers of Indonesian telecommunication firms. The results reveal that digital leadership based on dynamic capability impacts directly and indirectly on developing innovation. Market orientation also plays an important role in accelerating innovation. Due to limitations in terms of research model, sample size, and time, further research using larger samples in other industries and countries should be undertaken.

This paper makes an assessment on the impact of co-creation strategy as part of digital transformation in Industry 4.0 on supply chain management. We argue that the concept of strategy has shifted from the competitive strategy into co-creation strategy based on collaboration value. In developing co-creation strategy, the input is derived from external factors associated with customer experience and internal factors related to distinctive capabilities and both focus on core competence development in supply chain management. We use telecommunication firms as our unit analysis with sample of 35 Indonesian Information and Communications Technologies (ICT) firms analysed using Partial Least Square (PLS). The findings show that the developing of co-creation strategy was supported by distinctive capabilities and customer experience. The findings also indicate that co-creation strategy emerges as a key in sustaining business of the firms to focus on developing customer experience and providing distinctive capabilities.