Role of Differentiation and Innovation Strategies in Mediating the Influence of Industry Competition on Industry Performance (Study on Telecommunications Tower Industry in Indonesia)

Abstract

This research was conducted to examine and explain the role of differentiation strategy and innovation strategy in mediating the influence of industry competition on the performance of the telecommunications tower industry in Indonesia. The research was conducted at the largest telecommunications tower company listed on the Indonesia Stock Exchange (IDX). The unit of analysis is managers and general managers in the telecommunications tower industry because they are considered relevant to the needs of the research being conducted. Non-probability sampling method was used to determine the sample, with an online questionnaire as a data collection instrument. PLS-based SEM, with SmartPLS version 3.0, was used as a data analysis technique. The results of the study show that industry competition has a negative and significant effect on industry performance. Industry competition has a positive and significant effect on the implementation of the differentiation strategy and innovation strategy. The differentiation strategy has a positive and significant effect on industry performance. Likewise, the innovation strategy has a positive and significant effect on industry performance. Furthermore, the differentiation strategy and innovation strategy can partially mediate the effect of industry competition on industry performance. The research results are expected to provide an academic contribution to the development of knowledge related to the implementation of strategic management in industry, especially in the telecommunications tower industry. Furthermore, the research results are expected to provide a practical contribution to the management of the telecommunications tower industry in Indonesia regarding the optimization of strategies in order to improve industry performance in the context of the competition the telecommunications tower industry is facing.