Croatian International Relations Review

Hadi Prabowo
Obsatar Sinaga

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.

Keywords: Information and communication technology, competitive advantage, Indonesia..