Business Strategy and Innovation in Relation to the Intensity of Industry Competition on the Performance of Information Technology Companies

Abstract

Information technology companies are currently faced with a very high intensity of competition, and are required to be able to compete for long-term profits and gain competitive advantage. Changes in the external and internal environment require the Company to always adapt to the circumstances that occur.The study was conducted on companies engaged in information technology in Indonesia by taking a sample of 100 respondents as research samples, which were taken based on Judgmental Sampling and Quota Sampling based on criteria set by the author. Collecting data using a questionnaire, five measurement scales from strongly disagree to strongly agree, with an interval scale. The research was conducted quantitatively, as an analytical tool used PLS Second Order SEM analysis, while hypothesis testing was carried out with t-test and sig 0.05.The study are to produce five of the seven main findings that were in accordance with the proposed hypothesis, namely Industrial Competition (Porter Five Forces), Porter's Strategy (Differentiation, Cost Advantage, Focus), and Business innovation had direct and indirect effects on Company Performance.