The Effect of Innovation Culture and Strategic Planning Mediated by Technology Acquisition on The Indonesian Defense Industry Competitiveness

The purpose of this study is to analysis the effect of strategic planning and innovation culture on the competitiveness of the Indonesian defense industry with the acquisition of technology as an intervening variable in some institutions which associated with the defense industry and the Ministry of Defense of Indonesia. This study uses explanatory research, which analyses the concepts and problems under study to see the causality relationship, then explains the variables causing the problem under study. The sample in this research is part of the population, which is 160 respondents from some institutions associated with planning and implementing of defense industry policy. The results of this study that the direct effect of strategic planning have a positive but not significant direct on industrial competitiveness, and have a positive and significant indirect effect of strategic planning on industrial competitiveness through technology acquisition. There is a positive and significant influence of the culture of innovation on industrial competitiveness, but more dominantly a positive and significant indirect effect of the culture of innovation on industrial competitiveness through technology acquisition. The acquisition of technology has the most dominant effect on the competitiveness of the defense industry with a value of 0.69 compared with strategic planning and culture of innovation. The practical implication that the implementation of strategic planning and innovation culture has a significant effect on technology acquisition, and technology acquisition has a significant effect on the competitiveness of the defense industry. Thus the Ministry of Defense needs to increase technology acquisition supported by better strategic planning and build a culture of innovation to enhance the Indonesian defense industry competitiveness.