NAVIGATING COMPETITION STRATEGY: TECHNOLOGY READINESS, HUMAN CAPITAL, AND CUSTOMER ORIENTATION AS PERFORMANCE DRIVERS UNDER VARYING COMPETITIVE INTENSITY IN IT SERVICE FIRMS

Abstrak

This study examines how technology readiness (TR), human capital (HC), and customer orientation (CO) shape firm performance (FP) among medium-sized IT service firms in the Jakarta metropolitan region, and whether competitive intensity (CI) moderates those relationships. Grounded in Resource-Based View (RBV) theory, we argue that TR, HC, and CO constitute strategically valuable, difficult-to-imitate internal resources whose performance implications are amplified when the competitive environment intensifies. A quantitative, cross-sectional design was employed; data were gathered from 320 respondents at the management level across a minimum of 160 firms, then analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) via SmartPLS 4. Common method bias was assessed through Harman's single-factor test and the common latent factor procedure. Preliminary results indicate that TR, HC, and CO each exert significant positive effects on FP, while CI significantly moderates all three relationships strengthening the performance contribution of each resource under high-intensity conditions. These findings extend RBV scholarship to the Indonesian IT services context and carry direct implications for resource allocation decisions in competitively turbulent markets.