Strategic Plan, Human Resources Competencies, and Corporate Governance in Formulating Competitive Strategy and the Implication on Performance.

Author(s)

harry zks , Sucherly , Nury Effendi , Imas Soemaryani ,

Download Full PDF Pages: 29-43 | Views: 362 | Downloads: 97 | DOI: 10.5281/zenodo.3463053

Volume 4 - December 2015 (12)

Abstract

The business Units on Financial Service Sector of Indonesian State-Owned Enterprises experienced the The business Units on Financial Service Sector of Indonesian State-Owned Enterprises experienced the issues of low company performance in the last five years. Those issues influenced by an inappropriate competitive strategy. It presumably due to the weaknesses on Strategic Plan, Human Resource Competencies, and Corporate Governance that does not implemented well. Therefore, this research aims to study about Strategic Plan, Human Resource Competencies, and Corporate Governance, and their influences on competitiveness and the implications on company performance of Business Units on Financial Service Sector of Indonesian State-Owned Enterprises.The nature of the study is conclusive. Referring to the research objectives, namely to obtain a description of the variables studied and uncover relationship between variables, then the design of study is conclusive study. The unit of analysis is business units within the State Owned Enterprises (SOEs) of financial services sector in Indonesia. Until 2013, the number of Financial sector SOEs in Indonesia is as much as 66 SOEs were scattered throughout the region in Indonesia. The observations using the coverage time that is cross section / one shoot. The analysis design used to test hypotheses and determine the relationship between the variables in this research is the Partial Least Square (PLS). The results revealed Strategic Plan, Human Resource Competencies, and Corporate Governance, simultaneously and partially affect competitive strategy. But partially, Human Resource Competencies have a greater influence than Strategic Plan and Corporate Governance in influencing competitive strategy. Strategic Plan, Human Resource Competencies, and Corporate Governance simultaneously affect company performance through competitive strategy, but only Human Resource Competencies and Strategic Plan that have a significant influence on company performance through competitive strategy. To improve the performance of the company, the business units within the financial services sector of stateowned enterprises in Indonesia, must simultaneously develop the competence of human resources, strategic plan, and corporate governance to support competitive strategy that affect the performance of the company. The results show that partially only Human Resource Competencies and Strategic Plan which contributed significantly to the company's performance through competitive strategy. Therefore, an increase mainly in the competencies of human resources, supported by an increase in strategic plan and corporate governance will have an impact on improving the competitive strategy which in turn would increase the company's performance

Keywords

Strategic Plan, Human Resource Competencies, Corporate Governance, Competitive Strategy, Company Performance

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