Creating Competitive Advantage in the Turbulent Business Environment: Lesson Learned from Indonesia Telecommunication Industry

Article Sidebar

Cover BPostel Vol. 17 No. 1, 2019
PDF
Published: Aug 9, 2019
DOI: https://doi.org/10.17933/bpostel.2019.170103
Keywords:
competitive advantage, turbulent business environment, telecommunications industry, strategic management, telecommunication management
Dimensions
Altmetrics
Statistics
Read Counter : 577
Download : 397
Crossmark/ Data Version

Main Article Content

Muhammad Imam Nashiruddin
Center for Regulation & Management of Telecommunication (CRMT), School of Electrical Engineering, Telkom University
http://orcid.org/0000-0002-7939-158X

Abstract

Tujuan penelitian ini untuk mendapatkan gambaran mengenai keunggulan bersaing penyelenggara telekomunikasi dan mengeksplorasi bagaimana menciptakankeunggulan bersaing yang superior dalam lingkungan bisnis yang bergejolak.

Penelitian melibatkan pimpinan unit bisnis penyelenggara telekomunikasi di Indonesia sebagai responden penelitian dengan metode descriptive survey dan explanatory survey menggunakan Partial Least Square-Path Modelling (PLS-PM). Dari analisis deskriptif, diperoleh bahwa keunggulan bersaing penyelenggara telekomunikasi di Indonesia termasuk dalam kategori baik dan lebih banyak dibangun melalui efisiensi produk, terutama efisiensi yang lebih tinggi dalam menghasilkan produk atau layanan.Namun demikian, hasil penelitian menunjukkan bahwa kecepatan respon pasar memiliki kontribusi yang lebih dominan dalam menciptakan keunggulan bersaing yang superior pada lingkungan bisnis yang bergejolak. Untuk mengatasi masalah ini, penyelenggara telekomunikasi di Indonesia perlu meningkatkan kemampuannya,terutama dalam menciptakan respon yang lebih cepat untuk memasuki pasar-pasar baru serta menghasilkan produk atau layanan dengan biaya yang lebih rendah.

 

This study aims to describe the competitive advantage of the telecommunications provider and explore how to create a superior competitive advantage in the turbulent business environment. The study involved many leaders of business units of telecommunications operators in Indonesia as research respondents. The research uses descriptive survey and explanatory survey using Partial Least Square-Path Modeling (PLS-PM). From the descriptive analysis, it is found that the competitive advantage of telecommunications operators in Indonesia belongs to the excellent category, and was built more through product cost-efficiency, especially higher efficiency in producing products or services. However, the results of the study show that market responsiveness turned out to have a more dominant contribution in creating a superior competitive advantage in a turbulent business environment. Thus, the competitive advantage is still not optimal. To solve this problem, the telecommunications provider in Indonesia needs to increase the ability to quickly enter new markets and produce products or services at a lower cost.

Article Details

Issue
Vol. 17 No. 1 (2019): Juni 2019
Section
Telecommunication

Authors who publish with this journal agree to the following terms:

  1. Copyright on any article is retained by the author(s).
  2. Author grant the journal, right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work’s authorship and initial publication in this journal.
  3. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal’s published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  4. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
  5. The article and any associated published material is distributed under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License

 

 

Author Biography

Muhammad Imam Nashiruddin, Center for Regulation & Management of Telecommunication (CRMT), School of Electrical Engineering, Telkom University

Muhammad    Imam    Nashiruddin (Member, IEEE) earned his bachelor’s degree in electrical engineering (telecommunication) from University of Brawijaya in 1997, his master’s degree in electrical engineering (Information Technology & Multimedia System)  from Bandung Institute of Technology in 2003 and  his Ph.D. in business management from University of Padjajaran in  2014. Currently, he is senior lecture in the Graduate Program in Management, University of Prof. Dr. Moestopo (Beragama) and the Graduate Program in Telecommunication Management, University of Indonesia. In 2015-2018, he was appointed as a Commissioner for Economic & Business at the Indonesia Telecommunications Regulatory Authority (BRTI). He had a previous career as a professional in INDOSAT – a Full & Network Service Provider - for 17 years with his last position as Group Head of Corporate Strategy & Insight. His research interest including telecommunication management, telecommunication policy & regulatory, strategic management, ICT business management and digital transformation. He also engaged as the delegation of Republic Indonesia in several international telecommunication forum, including World Radiocommunication Conference, World Telecommunication Development Conference, Asia Pacific Telecommunity (APT), and ASEAN Telecom Regulatory Council (ATRC). He also led several activities new technology implementation in Indonesia, both technical, management and regulatory aspect.

References

Arif, S. R., Perdana, D., Hasan, T., & Nashiruddin, M. I. (2018). Analysis of Connectivity Model and Encoding Standards on IP Interconnection Implementation in Indonesia (Study Case: Low Data Rate up to 72 Mbps). Buletin Pos Dan Telekomunikasi, 16(1), 55. https://doi.org/10.17933/bpostel.2018.160105

Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120

Barney, J. B., & Arikan, A. M. (2006). The Resource-based View : Origins and Implications. In The Blackwell Handbook of Strategic Management (First Edit, pp. 123–182). Blackwell Publishing Ltd. https://doi.org/10.1111/b.9780631218616.2006.00006.x

Best, R. J. (2013). Market-Based Management: Strategies for Growing Customer Value and Profitability (Sixth Edit). New Jersey: Pearson Education, Inc.

Chaharbaghi, K., & Lynch, R. (1999). Sustainable Competitive Advantage : Towards a Dynamic Resource-Based Sustainable competitive advantage : towards a dynamic resource-based strategy. Management Decision, 37(1), 45–50. https://doi.org/10.1108/00251749910252012

Chen, X. (2012). Impact of Business Intelligence and IT Infrastructure Flexibility on Competitive Advantage : An Organizational Agility Perspective. Dissertations and Theses from the College of Business Administration. University of Nebraska. Retrieved from http://digitalcommons.unl.edu/businessdiss/32

D’Aveni, R. A., Dagnino, G. B., & Smith, K. G. (2010). The age of temporary advantage. Strategic Management Journal, 31(13), 1371–1385. https://doi.org/10.1002/smj.897

Day, G. S., & Wensley, R. (1988). Assessing Advantage : A Framework for Diagnosing Competitive Superiority. Journal of Marketing, 52(2), 1–20. https://doi.org/10.2307/1251261

Eisenhardt, K. M. (1989). Making Fast Strategic Decisions in High-Velocity Environments. Academy of Management Journal, 32(3), 543–576. https://doi.org/10.2307/256434

Fahy, J. (2000). The resource-based view of the firm : some stumbling- blocks on the road to understanding sustainable competitive advantage. Journal of European Industrial Training, 24(2/3/4), 94–104. https://doi.org/10.1108/03090590010321061

Gunawan, I. (2013). Pengaruh Lingkungan Bisnis Dan Reputasi Perusahaan Terhadap Strategi Bisnis Dan Keunggulan Bersaing Serta Implikasinya Pada Kinerja Bisnis Operator Telekomunikasi Seluler Di Indonesia. Disertasi. Fakultas Ekonomi dan Bisnis. Universitas Padjadjaran. Universitas Padjadjaran.

Hamel, G., & Prahalad, C. K. (1989). Strategic Intent. Harvard Business Review, (May-June 1989), 63–76.

Hill, Charles W. L.; Jones, G. R. (2008). Strategic Management: An Integrated Approach (9th Edition). South-Western, Cengage Learning.

Hill, C., Jones, G., & Galvin, P. (2004). Strategic Management: An Integrated Approach. Strategic Management: An Integrated Approach (11th Editi). Stamford, CT: Cengage Learning. https://doi.org/10.2218/ijdc.v5i1.148

Hosseini, S. M., & Sheikhi, N. (2012). An Empirical Examination of Competitive Capability ’s Contribution toward Firm Performance : Moderating Role of Perceived Environmental Uncertainty. International Business Research, 5(5), 116–131. https://doi.org/10.5539/ibr.v5n5p116

Irbansyah, Biakman (2011). Dynamic Capability Based on Knowledge Creation and Learning Orientation to Build Competitive Advantage. PhD Dissertation. University of Indonesia.

Kaltum, U. (2010). Pengaruh Strategi Bisnis dan Total Quality Service terhadap Keunggulan Bersaing dan Implikasinya pada Kinerja Unit Bisnis Industri Telekomunikasi di Indonesia (Suatu Survey di Pulau Jawa). Disertasi Program Pascasarjana Universitas Padjdjaran. Universitas Padjdjaran.

Kemkominfo. (2017). Laporan Tahunan 2017 Direktorat Jenderal Penyelenggaraan Pos Dan Informatika Kementrian Komunikasi Dan Informatika. Jakarta.

Kim, W. C., & Mauborgne, R. (2005). Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Harvard Business Review Press.

Lieberman, M. B., & Montgomery, D. B. (1988). First‐mover advantages. Strategic Management Journal, 9(1 S), 41–58. https://doi.org/10.1002/smj.4250090706

Ma, H. (2004). Toward global competitive advantage: Creation, competition, cooperation, and co-option. Management Decision, 42(7), 907–924. https://doi.org/10.1108/00251740410550961

Mittal, S. (2018). Industry Outlook : Indonesia Telecom (ID). DBS Group Research. Asian Insight Office. Singapore.

Nashiruddin, M. I. (2018). Understanding the Turbulence of Business Environment in Telecom Industry : Empirical Evidence from Indonesia. Buletin Pos Dan Telekomunikasi, 16(2), 75–90. https://doi.org/10.17933/bpostel.2018.160201

Nidumolu, S. R., & Knotts, G. W. (1998). The Effects of Customizability and Reusability on Perceived Process and Competitive Performance of Software Firms. MIS Quarterly, 22(2), 105–137. https://doi.org/10.2307/249392

Parnell, J. A. (2006). Generic strategies after two decades: A reconceptualization of competitive strategy. Management Decision, 44(8), 1139–1154. https://doi.org/10.1108/00251740610690667

Pavlou, P. a, & Sawy, O. a El. (2011). Understanding the ’ Black Box ’ of Dynamic Capabilities. Management Science, 92521(1), 239–273. https://doi.org/10.1111/j.1540-5915.2010.00287.x

Pearce, J. A., & Robinson, R. B. (1995). Strategic Management: Formulation, Implementation, and Control. McGraw Hill (Vol. 16). New York.

Pearce, J. A., & Robinson, R. B. (2009). Strategic Management: Formulation, Implementation, and Control. McGraw-Hill/Irwin.

Penrose, E. (2009). The Theory of the Growth of the Firm. Oxford University Press (Revised Ed). Oxford University Press.

Peteraf, M. A. (1993). The Cornerstones of Competitive Advantage: A Resource-Based View. Strategic Management Journal, 14(3), 179–191.

Porter, M. E. (1980). Competitive Strategy: Techniques for Analyzing-Industries and Competitorsf. The Free Pers (First Edit). New York: The Free Pers.

Porter, M. E. (1985). Competitive Advantage: Creating and Sustaining-Superior Performance. New York: The Free Press.

Segal-Horn, S. (2004). The Strategy Reader. Oxford: Blackwell Publishing. Oxford: Blackwell Publishing.

Sucherly. (2007). Strategi Pemasaran dalam Meningkatkan Keunggulan Bersaing serta Implikasinya pada Loyalitas Pelanggan. Jurnal Ekonomi Trikonomika. Fakultas Ekonomi Universitas Pasundan.

Suryanegara, M., Setyo, A. A., Asvial, M., Ramli, K., Nashiruddin, M. I., & Hayati, N. (2018). What are the Indonesian Concerns about the Internet of Things (IoT)? Portraying the Profile of the Prospective Market. IEEE Access. https://doi.org/10.1109/ACCESS.2018.2885375

Teece, D. J., Pisano, G., & Shuen, A. (2008). Dynamic capabilities and strategic management. Strategic Management Journal, 18(March), 509–533. https://doi.org/10.1142/9789812834478_0002

Walker, G., & Madsen, T. L. (2016). Modern Competitive Strategy. McGraw-Hill Education (4th Editio). McGraw-Hill Education.

Wernerfelt, B. (1984). A Resource-based View of the Firm. Strategic Management Journal, 5(2), 171–180.

Wiggins, R. R., & Ruefli, T. W. (2002). Sustained Competitive Advantage : Temporal Dynamics and the Incidence and Persistence of Superior Economic Performance. Organization Science, 13(1), 81–105.

Wu, L. Y. (2010). Applicability of the Resource-based and Dynamic-capability Views under Environmental Volatility. Journal of Business Research, 63(1), 27–31. https://doi.org/10.1016/j.jbusres.2009.01.007