5. Results and Discussion
A total 42 firms from 172 Indonesia software firms invited (respond rate of 24.4%) were willing to participate in
the study. A total of 21.4% of respondent firms are firms that provide services to develop customized software for
clients. A total of 23.8% of respondent firms develop and sell software products (e.g. human resources information
system and accounting applications) and the other 54.8% of respondents are doing both services.
Before hypotheses testing, validity and reliability evaluation were performed to the research model. This study used
indicator reliability (minimum score of 0.4), discriminant validity, average variance extracted (AVE, minimum score
of 0.5) and composite reliability (CR, minimum score of 0.7) for validity and reliability evaluation. The result of
validity and reliability evaluation is described in Table 1.