Two major events in the industrial world in 2020 have occurred, namely the industrial era 4.0 and the COVID-19 pandemic. Every event has an impact on change, including the strategy for competitive advantage in the industry, especially the digital industry. The COVID-19 pandemic has accelerated changes in various aspects of life towards digitalization, so the digital industry is required to be able to implement strategies by developments and needs in the global and new normal era. The purpose of this study was to analyze the role of collaboration in mediating the distinctive capability factor of the performance of the digital industry in Indonesia. Surveys have been conducted on 103 digital industries in Indonesia. The sampling technique was carried out by simple random sampling. Data were collected using a structured questionnaire via email and mail. Data analysis was performed using the structural equation modeling (SEM) approach and the LISREL program. The results of statistical tests showed that distinctive capability had a positive and significant effect on industrial collaboration and business performance. Business performance in the digital industry in Indonesia can be built by increasing distinctive capability and industrial collaboration. The strong influence of collaboration on business performance in the digital industry in Indonesia shows that industrial collaboration strategy is a good intervening variable for the effect of distinctive capability on the performance of the digital industry. The managerial implication of this research is the need to implement a collaborative strategy in running a business to gain a competitive advantage because in the current situation there is no single company that can survive without collaborating.