Business Strategies in a Turbulent Business Environment: Findings from Indonesian Telecommunication Industry

Article Sidebar

PDF
Published: Oct 31, 2019
DOI: https://doi.org/10.30818/jpkm.2019.2040201
Keywords:
business strategy, strategic management, telecommunication industries, telecommunication management, turbulent business environment
Dimensions
Altmetrics
Statistics
Read Counter : 666
Download : 325
Crossmark/ Data Version

Main Article Content

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

Abstract

This study aimed to explore the development of business strategies in a turbulent business environment. The study involved leaders of several telecommunication business units in Indonesia as research respondents. The research used the descriptive and the explanatory survey method using Partial Least Square-Path Modeling (PLS-PM). The results showed that although the business strategies of the telecommunication companies in Indonesia were included in the good category; however, they were still not optimal because were mostly created through competitive strategy. Whereas, the cooperative strategy turned out to have a more dominant contribution to create superior competitive advantage in a turbulent business environment. The study also discussed problem solving on how the companies should formulate the business strategy in a turbulent business environment and recommended on how to maintain the sustainability of the telecommunication industries in Indonesia.

Article Details

Issue
Vol. 4 No. 2 (2019): October 2019
Section
Informatics

The proposed policy for journals that offer open access

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, 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 Regulation & Management of Telecommunication, School of Electrical Engineering, Telkom University. In May 2015 - December 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 international telecommunication forum, including World Radiocommunication Conference, World Telecommunication Development Conference, Asia Pacific Telecommunity (APT), and ASEAN Telecom Regulatory Council (ATRC).

References

Ansoff, H. I., & McDonnel, E. J. (1990). Implanting Strategic Management (Second Edi). Prentice-Hall.

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

Cravens, D. W., & Piercy, N. F. (2009). Strategic Marketing (9th edition). Boston: McGraw-Hill Irwin. Retrieved from http://bvbr.bib-bvb.de:8991/exlibris/aleph/a22_1/apache_media/QBG2DR9M3QLHJTJ9BG1GF3TP67MN66.pdf

Gitoadi, T. (2010). Strategi dalam Menghadapi Persaingan Industri Telekomunikasi Seluler GSM di Indonesia. Universitas Bina Nusantara.

Grant, R. M. (1991). The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation. California Management Review, 33(3), 114–135. https://doi.org/10.2307/41166664

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.

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

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2011). Strategic Management and Strategic Competitiveness. Strategic Management: Competitiveness and Globalization: Concepts. https://doi.org/10.1017/CBO9781107415324.004

Hubbard, G., & Beamish, P. (2011). Strategic Management : Thinking, Analysis, Action.

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.

Kartajaya, H., Yuswohadi, & Madyani, D. (2004). On Becoming A Customer-Centric Company: Transformasi TELKOM Menjadi Perusahaan Berbasis Pelanggan. Jakarta: Gramedia Pustaka Utama.

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

Miles, R. E., Snow, C. C., Meyer, A. D., & Coleman, H. J. (1978). Organizational Strategy, Structure, and Process. The Academy of Management Review, 3(3 (Jul. 1978)), 546–562.

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

Nashiruddin, M. I. (2019). Creating Competitive Advantage in the Turbulent Business Environment : Lesson Learned from Indonesia Telecommunication Industry Menciptakan Keunggulan Bersaing dalam Lingkungan Bisnis yang Bergejolak : Pelajaran dari Industri Telekomunikasi Indonesia. Buletin Pos Dan Telekomunikasi, 17(1), 31–46. https://doi.org/10.17933/bpostel/2019/170103

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

Porter, M. E. (1980). Competitive Strategy: Techniques for Analyzing-Industries and Competitors. 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.

Seixas, P. (2015). Session 5 : Building Synergies between OTT players and ICT network operators. In ITU-ASEAN Forum on Over the Top (OTT) Services: Business, Policy and Regulatory Trends (p. 20). Phnom Penh, Cambodia: International Telecommunication Union (ITU).

Thompson, A. A. J., Strickland, A. J., Gamble, J. E., & Peteraf, M. A. (2016). Crafting & Executing Strategy: The Quest for Competitive Advantage. McGraw Hill Education.

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

Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2018). Strategic Management and Business Policy : Globalization, Innovation and Sustainability (15th ed.). Pearson.