Indonesia has identified the electronics and telematics industry as one of its national strategic sectors for long-term economic development. The industry includes information technology, telecommunications, digital applications, software development, and electronic devices that support digital transformation across multiple sectors.
Despite its strategic importance, the industry continues to face significant challenges. Companies compete with low-cost imported products, increasing competition from neighboring ASEAN countries, illegal market products, infrastructure limitations, and regulatory inefficiencies. These pressures make business strategy and organizational leadership increasingly important for maintaining competitiveness.
Against this backdrop, Jimmy Lizardo investigated how market attractiveness, digital leadership, and strategic business practices interact to influence overall business performance among Indonesian telematics companies.
The research was conducted during 2023 using a quantitative research design. Data were collected through structured questionnaires completed by managers from 55 telematics companies in Bandung, Indonesia. Only companies operating for more than three years were included to ensure respondents had sufficient business experience. The collected data were analyzed using Partial Least Squares (PLS), a statistical method commonly used to evaluate relationships among business variables.
Rather than examining each factor independently, the study explored how market conditions and leadership capabilities contribute to business strategy and ultimately improve organizational performance.
The results reveal several important findings.
First, digital leadership has the strongest influence on strategic business development. Leaders who possess a clear digital vision, encourage organizational engagement, establish effective digital governance, and adopt technology strategically are better able to formulate competitive business strategies.
Second, market attractiveness also contributes to business strategy, although its influence is considerably smaller than that of digital leadership. Favorable market conditions alone do not guarantee stronger business results unless companies develop strategies that capitalize on those opportunities.
Third, the study found that market attractiveness does not directly improve business performance. Simply operating in an attractive market does not automatically increase profitability, sales growth, or market share.
By contrast, digital leadership directly improves business performance. Organizations led by digitally capable leaders demonstrate stronger overall performance because leadership enables faster adaptation to technological change, more effective decision-making, and better organizational alignment.
Perhaps the most significant finding is that strategic business execution is the strongest driver of business performance. Companies that combine competitive strategies with cooperative partnerships achieve better financial outcomes and stronger market positions than firms relying solely on favorable market conditions.
The research also demonstrates that strategic business serves as a critical bridge between leadership and organizational performance. Both market attractiveness and digital leadership produce greater business results when they are translated into well-designed competitive and collaborative strategies.
The findings can be summarized as follows:
- Digital leadership significantly strengthens strategic business planning.
- Market attractiveness positively influences business strategy but has no direct effect on business performance.
- Strategic business significantly improves profitability, sales growth, and market share.
- Digital leadership directly enhances business performance.
- Strategic business mediates the relationship between both market attractiveness and digital leadership with business performance.
The study suggests that many companies focus heavily on identifying market opportunities while underestimating the importance of leadership capabilities. According to the findings, competitive advantage depends less on operating in an attractive market and more on how effectively leadership transforms market opportunities into actionable business strategies.
As Jimmy Lizardo of Universitas Kristen Krida Wacana explains through the study's findings, digital leadership enables management to better understand changing market conditions and implement competitive as well as collaborative business strategies that ultimately improve organizational performance. In other words, digital transformation succeeds not because technology is available, but because leaders know how to integrate technology into strategic decision-making.
The implications extend beyond the telematics sector.
For business executives, the research highlights the importance of investing in leadership development alongside digital technologies. Building digital leadership capabilities may generate greater long-term returns than technology investments alone.
For policymakers, the findings support initiatives that strengthen managerial competencies, encourage digital transformation, and promote strategic collaboration among technology companies to improve Indonesia's industrial competitiveness.
Educational institutions and business schools may also benefit from incorporating digital leadership and strategic management more extensively into management curricula, preparing future leaders for increasingly technology-driven industries.
Although the study focused on telematics companies in Bandung, its conclusions provide valuable insights for organizations across Indonesia that are pursuing digital transformation. The author notes that future studies should include companies from additional regions to determine whether similar patterns exist across the broader Indonesian telematics industry.
Author Profile
Jimmy Lizardo is a lecturer in the Management Study Program, Faculty of Economics and Business, Universitas Kristen Krida Wacana (UKRIDA), Jakarta, Indonesia. His research focuses on strategic management, digital leadership, business strategy, organizational performance, and digital transformation in Indonesian industries.
Source
Article Title: The Role of Market Attractiveness, Digital Leadership, and Strategic Business on Business Performance of Telematics Industry in Indonesia
Journal: Formosa Journal of Science and Technology (FJST)
Publication Year: 2026
Volume: 5, Issue 6, Pages 1629–1640
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