Marketing Capabilities and Differentiation Strategy for Performance: A Case Study of Internet Service Providers in Indonesia

International Journal of Economics and Management Studies
© 2018 by SSRG - IJEMS Journal
Volume 5 Issue 5
Year of Publication : 2018
Authors : Nurul Hermina, IGNM Jaya
How to Cite?

Nurul Hermina, IGNM Jaya, "Marketing Capabilities and Differentiation Strategy for Performance: A Case Study of Internet Service Providers in Indonesia," SSRG International Journal of Economics and Management Studies, vol. 5,  no. 5, pp. 10-14, 2018. Crossref,


In view of the economic growth expected from Internet industry, the business performance within the Internet industry in Indonesia needs boosting. This study was aimed to analyze the influence of Marketing Capability and Differentiation Strategy for business performance within the Internet industry in Indonesia. This study used a sample of 128 Internet Service Providers (ISPs) with a sampling technique via a web survey. The collected data were analyzed using partial least squares path modeling. Software XLSTAT 2017 was utilized to estimate the model. The analysis showed that variables such as capabilities and business strategies have a significant positive impact on business performance; while differentiation strategy provides a greater influence.


Marketing Capabilities, Differentiation Strategy, Performance, Internet Service Providers


[1] APJII, Indonesia Internet Service Provider Association Report 2014, Jakarta: APJII, 2014. 
[2] ITU, The State of Broadband 2013: Universalizing Broadband A report by the Broadband Commission September 2013, Switzerland: UNESCO, 2013. 
[3] Best, Roger J, Market - Based Management: Strategies for Growing Customer Value and Profitability, New Jersey: Prentice-Hall, 2009. 
[4] Wheelen, T.L. and Hunger, J.D., Strategic Management and Business Policy: Achieving Sustainability 12th Edition, New Jersey: Pearson International Edition, 2010. 
[5] David, J., and Ketchen, J., Strategy, Texas: MC Graw Hill, 2009. 
[6] Porter, Michael, Competitive Advantage, New York: The Free Press, 1985, 
[7] Rufaidah, P. , Strategic Management 1th Edition Bandung: Humaniora, 2013 
[8] David, Fred R., Strategic Management, Concept & Cases’,10th Edition, New Jersey: Prentice-Hall, 2005 
[9] Hitt, et al. Strategic Management: competitiveness and globalization concepts, St. Paul, MN: West Publishing Company, 1995 
[10] Johnson, G., et al, Fundamentals of Strategy. England: Prentice Hall, 2009 
[11] Cooper, D.R, and Pamela S. S., Business Research Methods 9th Edition, Singapore: McGraw-Hill Irwin, 2006. 
[12] Fornell, C., and Larcker, D., Evaluating structural equation models with unobservable variables and measurement error, Journal of Marketing Research, vol. 18, pp. 39–50, 1981 
[13] Lee, J., and Kim, Y., Effect of partnership quality on IS outsourcing: conceptual framework and empirical validation, Journal of Management Information Systems, vol.15(4), pp. 29–61, 1999. 
[14] Nunnally, J. Psychometric Theory, 2nd edition. New York: McGraw-Hill, 1978. 
[15] Hair, Jr., Tomas G., Ringle, Christian., Sarstedt, Marko., A Primer on Partial Least Squares .structural Equation Modeling (PLS-SEM), Los Angeles: Sage Publication, 2014 
[16] Vinzi, Esposito V., Chin, W.W., Henseler, J., Wang, H. Handbook of Partial Least Squares. Concept, Methods, and Applications, Berlin: Springer, 2010 
[17] Tenenhaus M., LISREL Path Modeling, Journal of Computational Statistics & Data Analysis. vol. 48. pp. 159 – 205, 2005