THE INFLUENCE OF INFORMATION AND COMMUNICATION TECHNOLOGY ON FIRM PERFORMANCE THROUGH COMPETITIVE ADVANTAGE: A CASE STUDY IN COSMETIC INDUSTRIES OF INDONESIA

Abstract

Nowadays, Information and Communication Technology becomes important for companies to be able to operate their business when facing competitors. ICT adoption can help to access opportunities when markets are dynamic and uncertain. Company knowledge can be a real competitive resource in order to improve company performance. ICT is considered capable of producing the best performance of the company. With the development of the company's performance, it will create renewal of resources that can compete in uncertain market conditions. This journal aims to determine the influences of ICT on company performance through competitive advantage as its mediating variable. Data was collected from 37 cosmetics industries in Bandung, Indonesia. All respondents were chosen by using probability sampling using the cluster sampling method. The data analysis is used to see the influence and hypothesis testing by using Path Analysis. The results show that ICT has a positive effect on company performance through competitive advantage as a mediating variable.

Keywords

• information
• communication technology
• firm performance
• competitive advantage