The Influence Of Corporate Resources And Corporate Strategy To Improve Corporate Performance At Indonesian State Owned Enterprises

Abstract: The existence of Indonesian state-owned enterprises (SOEs) has an important role for the communites’ welfare as it is mandated in the consttuton. If traced based on its face value, the proft of Indonesian SOEs looks to contnue increase steadily every year. However, on the other hand there is the biggest challenge, such as how to increase the value of company, which is shown by ROA and ROE that keep on declining. This actually means that it is stll possible to get a higher proft. The objectves of this study are to get assessment regarding to (1) correlatons of corporate resources with corporate strategy, and (2) whether corporate resources and corporate strategy are affectng corporate performance, partally or simultaneously, to the Indonesian SOEs. Units of analyzes were 101 corporatons from four different industry sectors and the samples for this research are 50 corporatons of Indonesian SOEs. Time horizon is cross-sectonal, where the study was conducted at a single period of tme simultaneously. Data was gathered by questonaires and in-depth interviews to SOEs directors and functonal managers. Data analyzed were both descriptve and quanttatve. Hypothesis testng was utlized by PLS model (Partal Least Square) 2.0 version. The fnding shown that there are correlations between corporate resources and corporate strategy. Corporate resources and corporate strategy do affect corporate performance, directly or simultaneously. Moreover, corporate strategy have more influence than corporate resources. Directonal strategy and organizatonal resources are the most dominant dimensions in affectng corporate performance of Indonesian SOEs. The conclusion from this research is that most of Indonesian SOEs are not capable in formulating their corporate strategy appropriately due to mismatching of their/incompatbility corporate resources.

Key words: Corporate Resources, Corporate Strategy, and Corporate Performance

Penulis: HARRY GOZALI, SUCHERLY, YUYUS SURYANA, YEVIS M. OESMAN

Kode Jurnal: jpmanajemendd151378

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