The Effect of Information and Communication Technology on Competitive Advantage of International Business in Indonesia

Company’s uses information and communication technology (ICT) to
increase the effectiveness and efficiency of offered services to customers and
to enhance the management perspective decision making and also enhancing
work group collaborations. It could also help to strength the competitive
advantage (CA) in the broadly changes economies. Therefore, the objective of
the research is to examine the effect of ICT on CA of international businesses
in Indonesia. The data was collected from 300 multinational companies’
managers via convenient sampling technique. The study used cross sectional
research design, quantitative research approach. Partial Least Square (PLS)-
Structural Equation Modeling (SEM) findings designates that ICT has a
positive and significant impact on CA. These results show that this study could
help to the owners or managers to know about the importance of investment
in ICT that could lead to enhance the CA of the organizations. Based on these
findings it is also recommended that if the companies have more attention on
adoption of ICT within their operations, then the companies could help to
wheel their nations’ economy. Despite the fact policies which are appropriate
should be put in place for ensuring proper monitoring and fortitude of
optimum size which is required to gain the competitive advantage.

Key words: Information and communication technology, competitive advantage, Indonesia.