International Journal of Scientific & Technology Research

Home About Us Scope Editorial Board Blog/Latest News Contact Us
10th percentile
Powered by  Scopus
Scopus coverage:
Nov 2018 to May 2020


IJSTR >> Volume 5 - Issue 2, February 2016 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

The Effect Of Industrial Competition Intensity And Capabilities On Business Strategy And Performance: A Case Study Of Internet Service Providers In Indonesia

[Full Text]



Nurul Hermina, Yuyus Suryana



Industrial Competition Intensity, Capabilities, Business Strategy, Performance, Internet Service Providers



The business performance within the Internet industry in Indonesia needs to be upgraded. The main objective of this study is to analyze the influence of Industrial Competition Intensity and Capabilities on Business Strategy and Performance within the Internet industry in Indonesia. This study has utilized a representative sample of 70 Internet Service Providers (ISPs) with a web survey sampling technique. The collected data are analyzed using Partial Least Squares Path modeling. The analysis shows that variables such as industrial competition intensity and capabilities have significant positive impacts on business strategies and business performance. Out of the two variables, it is found out that capabilities provide greater influence.



[1]. Fornell, C., and Larcker, D. “Evaluating structural equation models with unobservable variables and measurement error.” Journal of Marketing Research, pp 39–50, 18th February, 1981.

[2]. Hair, J.F., Hult, G.T.M., Ringle, C.M. and Sarstedt, M. “A Primer on Partial Least Squares .structural Equation Modeling (PLS-SEM).” Sage Publication, Los Angeles, 2004.

[3]. Lee, J., and Kim, Y. “Effect of partnership quality on IS outsourcing: conceptual framework and empirical validation.” Journal of Management Information Systems, 15, 4, 1999, 29–61, 1999.

[4]. Nunnally, J. Psychometric Theory, 2nd edition. McGraw-Hill, New York, NY, 1978.

[5]. Best, Roger J. “Market - Based Management: Strategies for growing Customer Value and Profitability” Prentice Hall, New Jersey, 2009.

[6]. Cooper, D.R and Pamela S. S. “Business Research Methods” 9th Edition, McGraw-Hill Irwin, Singapore, 2006.

[7]. Best, Roger, J. “Market based management strategies for growing customer value and profitability”, 5th edition, Prentice Hall Inc., 2009.

[8]. David, J., and Ketchen, J. “Strategy” Texas: MC Graw Hill, 2009.

[9]. Charles WL Hill, Gareth R. Jones. ”Strategic management an integrated approach” 9th Edition, South western engage learning, 2010.

[10]. Michael, Porter. “Competitive Advantage” The Free Press, New York, 1985.

[11]. Tenenhaus M. et. Al. “LISREL Path Modeling” Journal of Computational Statistics & Data Analysis. Vol 48. P. 159 – 205, 2005.

[12]. Vinzi V. E, et. Al. “Handbook of Partial Least Squares. Concept, Methods, and Applications” Springer, 2010.

[13]. Wheelen, T.L. and Hunger, J.D. “Strategic Management and Business Policy:Achieving Sustainability” 12th Edition. New Jersey: Pearson International Edition, 2010.

[14]. Benoit Chevalier,Lenos Trigeorgis. ”Competitive strategy option and games”,The MIT press Cambridge, Massachusetts ,London England, 2011.

[15]. Samuel Obino Mokaya, Beatrice Wakhungu, Raphael Mwiti Gikunda (2012). “The Application of McKinsey Matrix in Determination of Route Attractiveness and Resource Allocation in Kenya Airways” International Journal of Humanities and Social Science Vol. 2 No. 3; February 2012.

[16]. Indonesia Internet Service Provider Association Report (APJII) 2014.

[17]. Indonesia Broadband Plan 2014 -2019.

[18]. International Telecommunication Union (ITU) World Telecommunication Report 2013.