The Effect of Corporate Strategy to Company Performance
DOI:
https://doi.org/10.24203/ajbm.v8i1.6091Abstract
PT. Telekomunikasi Indonesia, Tbk (Telkom) is a state-owned enterprise that serves telecommunication services and network across Indonesia. Telecommunication business is a “legacy†platform of this company; whereas another portfolio business that called “new wave†has, motivate the company to keep making innovation related to digital based product. This confirms Telkom's commitment to increase revenue amid competitive business environment. In 2015, Telkom’s management has targeted a growth of 8%, which is slightly above the market growth. It has “first thing first strategy†to make a sustainable competitive growth in all business units in Telkom. Based on above description, it is thought that it would be beneficial to analyze how the company’s cooperates strategy affects the performance of Telkom’s business unit. Unit analysis used in this research is 30 business units of Telkom that spread across Indonesia. From the hypothesis test using Partial Least Square (PLS) approach, it was revealed that corporate strategy has a significant effect to improve company performance. The most dominant aspect that reflects corporate strategy is portfolio strategy followed by directional strategy and parenting strategy. As for the company performance variable, profitability dimension is the most reflecting the company performance, followed by sales and market share dimension.
Downloads
Published
Issue
Section
License
- Papers must be submitted on the understanding that they have not been published elsewhere (except in the form of an abstract or as part of a published lecture, review, or thesis) and are not currently under consideration by another journal published by any other publisher.
- It is also the authors responsibility to ensure that the articles emanating from a particular source are submitted with the necessary approval.
- The authors warrant that the paper is original and that he/she is the author of the paper, except for material that is clearly identified as to its original source, with permission notices from the copyright owners where required.
- The authors ensure that all the references carefully and they are accurate in the text as well as in the list of references (and vice versa).
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
- The journal/publisher is not responsible for subsequent uses of the work. It is the author's responsibility to bring an infringement action if so desired by the author.
