IT value analysis by resource-based view theory: The case study of PT. PLN (Persero) Indonesia

Nowadays IT is not a new thing that can help corporate in many areas. It is believed that IT spending has influenced to business performance and has an impact to competitive advantage of a corporate. From the theory which stated that resources owned by business organizations have close relationship to the business competitive advantage as Resource Based View (RBV) theory proposes. To confirm this theory, a case study is performed for PT. PLN (Persero) Indonesia, as the largest corporate that support electricity power through Indonesia coverage. This study focused on analysis the impact of IT spending on PLN to its business performance. Findings show that IT spending has not directly impact to IT revenue, but it can help PLN to improve the capability of controlling the resources with a new system that has been implemented. PLN IT resources referring to RBV are then analyzed in terms of organization capability, organization core competence, and competitive advantage that lead to be the IT value model. To sum up, the result indicates that IT value has definitely affected PLN business performance and improved customer satisfaction. However, it is necessary to enlarge the case study to the other similar industry or the different one.