Industry Attractiveness, Competitive Strategy and Company Performance in the Internet Service Provider in Indonesia

1Nurul Hermina, Mohd Haizam Saudi

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Abstract:

The development of information technology in this digital era is supposed to be a big opportunity for internet service provider industry in Indonesia. However, the growth of the industry is not accompanied by an increase in the company’s income. Some companies are not able to survive due to a very tight competition. High competition, while on the other hand the industry is still viewed as interesting, is considered the cause that makes internet service providers are not able to continue their business. This research is aimed to evaluate the influence of competing strategy and industry attractiveness towards the business performance of internet service provider in Indonesia. This research used primary data of 128 internet service providers in Indonesia that were collected through online survey. By implementing the Partial Least Square Path Modelling technique analysis, it was found out that competing strategy became the main factor influencing business performance compared to industry attractiveness. This finding is due to the fact that internet industry remains an industry having a high level of attractiveness, but the main implication for management is how to make industry attractiveness able to improve company performance. With the right competing strategy, companies will be able to survive in a tight competition.

Keywords:

Competing strategy, Industry attractiveness, Company performance, Partial least square path modelling.

Paper Details
Month2
Year2020
Volume24
IssueIssue 2
Pages3566-3577