A study of digital startups movement in Malang Raya, Indonesia

Abstract

This study examines the meso-level dynamics of regional innovation through inter-organizational relationships and institutional frameworks in Indonesia's digital startup ecosystem, focusing on Malang Raya under the National Movement of 1000 Digital Startups Program. Through qualitative case study methodology, data was collected from 12 key informants representing the five elements of the Pentahelix model: government, academia, business, community, and media. The analysis, conducted using NVivo 12 (software specifically designed for qualitative data analysis), revealed distinct patterns of formal and informal institutional interactions that significantly influence ecosystem development. Key findings demonstrate that successful regional innovation dynamics depend on six critical factors: power distribution, trust-building mechanisms, resource allocation, regional readiness, implementation challenges, and market opportunities. The study identifies how formal institutions (such as government regulations and programs) interact with informal institutions (including cultural values and local networks) to create unique collaborative environments. A notable finding is the central role of knowledge-sharing networks and collaborative platforms in bridging formal and informal institutional gaps. This research contributes to both theoretical understanding of regional innovation systems and practical implementation of multi-stakeholder collaboration models in emerging digital economies. The findings provide valuable insights for policymakers and ecosystem stakeholders in designing effective strategies for accelerating digital startup development through enhanced stakeholder synergy.