Strategic Competitiveness Framework for Indonesian TIC Companies: Integrating Porter’s Five Forces and Dynamic Capabilities in the Global Market

Abstract

The Indonesian Testing, Inspection, and Certification (TIC) industry faces significant challenges amidst global economic recovery and intensified competition, with national firms yet to achieve a top 20 global revenue position. This study proposes an integrated strategic framework, combining Porter’s Five Forces with Dynamic Capabilities, to enhance the competitiveness of Indonesian TIC companies. The research employed a rigorous mixed-methods approach, involving descriptive analysis, Interpretive Structural Modeling (ISM), and Analytic Hierarchy Process (AHP), with data collected from 208 managerial-level respondents (Senior Manager and above) and 4 experienced experts. Analysis reveals that the threat of new entrants is the most critical external competitive factor, while innovation and digitalization emerge as paramount strategic priorities for long-term competitive advantage. Among Porter’s generic strategies, the Focus (niche market) strategy is identified as most effective, particularly in Indonesia’s "red ocean" market, where differentiation and specialization are essential. The ISM model delineates a multi-level competitiveness structure, demonstrating that sustainable competitive advantage is fundamentally driven by dynamic capabilities such as innovation, collaboration, customer bonding, and digital transformation. This study provides a context-specific framework for Indonesian TIC companies, emphasizing the strategic alignment of internal dynamic capabilities with external industry dynamics, thereby theoretically enriching strategic management by integrating Porter's Five Forces and Dynamic Capabilities, and practically guiding national TIC firms in developing adaptive strategies for global competition and long-term resilience.