Integrating ISM and AHP for Competitive Strategy Formulation and Prioritization in the Indonesian TIC Industry

The Testing, Inspection, and Certification (TIC) industry in Indonesia faces complex competitive challenges and rapid environmental dynamics. To formulate an effective competitiveness strategy, an in-depth understanding of the interconnections between factors as well as strategic priorities is crucial. This research applied a mixed-methods approach, specifically using Interpretive Structural Modeling (ISM) to map the hierarchical relationships among competitiveness factors from the perspectives of Porter's Five Forces and Dynamic Capabilities, and Analytic Hierarchy Process (AHP) to determine strategic priorities. The ISM results revealed the driving structure and dependencies between factors, showing that internal capabilities such as innovation and digitalization have high driving power. Meanwhile, AHP identified innovation and focus strategies as top priorities. This study makes a methodological contribution by demonstrating the integration of ISM and AHP in strategy formulation, as well as practical implications for Indonesian TIC companies in building sustainable competitive advantage.