Track: Innovation

Abstract

Automotive is one of the competitive industries supported by its significant technological advancement, but it is susceptible to disruption trends. In Indonesia, the automotive industry has many vehicle segments. One of them is the Medium Sport Utility Vehicle (MSUV) segment. The disruption phenomenon occurred in the Medium Sport Utility Vehicle segment due to the emergence of the X brand in 2019, enabled by disruptive technologies to challenge and gain the Y brand’s market share as the incumbents. Therefore, there is an urgency to determine disruptive technology used in the automotive industry. This research utilizes Multi-Criteria Decision Making (MCDM) method combining Analytical Hierarchy Process (AHP) and Technique for Others Reference by Similarity to Ideal Solution (TOPSIS). The main results showed that Government Regulation was the most important criterion, while Electric Vehicles became the most preferred alternative for disruptive technology selection in the automotive industry. This research arguably has theoretical and practical contributions. Theoretically, this research was the first attempt to determine disruptive technology used in the automotive industry, while practically, this research could guide the automotive manufacturer to select the most disruptive technology while considering some critical criteria during the research and development process.