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Trends in Information Technology Development, And Strategy Selection in Increasing the Profitability of Banking Activities in Indonesia

Information technology, strategy selection, and profitability can be used as variables in determining the strategy of the banking industry in Indonesia to increase productivity and profits of a company in the banking sector. This study aims to identify and analyze the relationship of information technology, and strategy selection to the profitability of the banking industry in Indonesia. The study was conducted by random sampling at 101 executive levels of banking companies which consisted of each president director, director, and manager. Data were analyzed using LISREL analysis with a structuring model (SEM) and hypothesis testing. The results of this study indicate that information technology has a positive and significant effect on strategy selection strategy selection has a positive and significant effect on profitability and information technology has a positive and significant effect on profitability in the Indonesian banking sector. This study suggests that decision makers in the banking industry in Indonesia take advantage of various forms of information technology and design strategies including the selection of strategies to increase financial profitability in each company.