Identification of Critical Factors on Structure and Conduct using SCP Framework: Evidence from Indonesian ICT Industry

Abstract

ICT companies that focus on the field of software development are part of the era of the creative economy in Indonesia. The categories of business that are carried out include e-commerce, fin-tech, games, and so on. This study aims to identify critical factors in the industrial structure and behavior of ICT companies that affect company performance. The sample used was 64 ICT companies in the Yogyakarta area that focused on software development. Respondents consisted of top-level and middle management, who understood the real condition of the industry structure and company behavior. In this study, it was concluded that five main factors are consisting of two factors of industrial structure and three factors of corporate behavior that affect performance. There are including the funding factor, human resource competence, the importance of market research, clear organizational structure, and IT-business strategic alignment.