The Effect of Product Innovation and Sales Growth on Profitability in Technology Subsectors Listed on the Indonesia Stock Exchange, 2019-2023

Authors

  • Iman Sobirin Sekolah Tinggi Ilmu Ekonomi STAN IM, Bandung, Indonesia
  • Hariandy Hasbi Sekolah Tinggi Ilmu Ekonomi STAN IM, Bandung, Indonesia

DOI:

https://doi.org/10.38035/dijemss.v7i3.5971

Keywords:

Product Innovation, Sales Growth, Profitability

Abstract

Indonesia's digital economy is propelled by the technology industry, which demands ongoing innovation and adjustments to stay ahead. Within this intense competitive environment, profitability serves as the primary indicator of effective business strategies, highlighting the importance of examining key internal factors that influence profits for decision-makers. The objective of this investigation was to evaluate how product innovation and sales expansion affect profitability in 30 firms from the technology sub-sector traded on the Indonesia Stock Exchange over the period from 2019 to 2023. Employing a quantitative associative approach with secondary financial information, the study utilised multiple linear regression analysis on panel data spanning five years, combining cross-sectional and time-series elements. Results reveal that product innovation exerts a positive and meaningful influence on profitability, while sales growth demonstrates a positive yet statistically insignificant individual impact. Nevertheless, simultaneously these factors have a substantial joint effect on profitability, accounting for 48.2% of the variability. This work underscores the critical importance of innovative practices and strategies for market growth in improving the fiscal outcomes of technology companies in Indonesia. The outcomes are anticipated to guide leaders in enhancing R&D expenditures and fostering enduring sales development.

Author Biography

Iman Sobirin, Sekolah Tinggi Ilmu Ekonomi STAN IM, Bandung, Indonesia

Iman is a final year student who is completing his Bachelor's degree by writing articles for the DIJEMSS journal under the supervision of Hariandy Hasbi

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Published

2026-02-05

How to Cite

Sobirin, I., & Hasbi, H. (2026). The Effect of Product Innovation and Sales Growth on Profitability in Technology Subsectors Listed on the Indonesia Stock Exchange, 2019-2023. Dinasti International Journal of Education Management and Social Science, 7(3), 2485–2495. https://doi.org/10.38035/dijemss.v7i3.5971

Issue

Vol. 7 No. 3 (2025): Dinasti International Journal of Education Management and Social Science (February - March 2026)

Section

Articles

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Copyright (c) 2026 Iman Sobirin, Hariandy Hasbi

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