Innovation Governance and Intellectual Property Strategy as Drivers of Organizational Transformation: Evidence from Indonesia’s Dairy Industry

Abstract

The Indonesian packaged milk industry faces increasing pressure from technological disruption, changing consumer preferences, and intensifying market competition. Despite the sector’s strategic importance for food security and economic development, many dairy manufacturing firms still rely on conventional managerial practices that limit their capacity to innovate and respond to market dynamics. This study examines how innovation governance and intellectual property management contribute to organizational transformation in the Indonesian packaged milk industry. A qualitative case study approach was employed to analyze innovative practices within the sector, focusing on PT Ultrajaya Milk Industry and Trading Company Tbk as a representative firm. Data were collected from theoretical literature, industry documents, and regulatory materials and analyzed using thematic coding in Computer-Assisted Qualitative Data Analysis Software (CAQDAS), specifically NVivo 14. The analysis identifies several dominant themes, including product innovation, technological capability, market orientation, and production integration. The results indicate that organizational transformation is driven primarily by an entrepreneurial orientation that prioritizes opportunity exploration and product diversification. Structured innovation governance mechanisms, including stage-based evaluation processes and strategic innovation blueprints, enable firms to manage innovation systematically and reduce research and development risks. The findings also highlight the growing importance of open innovation, digital supply chain integration, and collaboration with external stakeholders in accelerating product development. Furthermore, proactive intellectual property management strengthens competitive advantage by protecting proprietary knowledge and increasing the value of intangible assets.