Effects of environmental factors on corporate strategy and performance of manufacturing industries in Indonesia
Visualitza/Obre
Estadístiques de LA Referencia / Recolecta
Inclou dades d'ús des de 2022
Cita com:
hdl:2117/81168
Tipus de documentArticle
Data publicació2015-07
EditorOmniaScience
Condicions d'accésAccés obert
Llevat que s'hi indiqui el contrari, els
continguts d'aquesta obra estan subjectes a la llicència de Creative Commons
:
Reconeixement-NoComercial 3.0 Genèrica
Abstract
Purpose: the purpose of this study was to examine and obtain empirical evidence of the
effects of external and internal environmental factors on the strategy and performance of
manufacturing companies.
Design/methodology/approach: This study used primary data obtained by distributing
questionnaires to 150 respondents of manufacturing companies in Indonesia spreading over six
major cities in Java such as Jakarta, Banten, Bandung, Yogyakarta, Semarang and Surabaya.
Samples were taken by using the systematic random sampling technique. The technique was
used since those major cities had different numbers of manufacturing companies. Subsequently,
the feasibility of the model was tested. Several indices of model feasibility would be used to test
the model developed in this structural equation model. In case of a sub-optimal model, a model
modification was to be performed by adding or removing paths so that the chi-square values
would decrease by the values of the index.
Findings: Results showed that internal and external environmental factors, through the
operating environments and the remote environments of manufacturing industries, jointly
affected the companies’ understanding of the condition of the industrial environments to
establish strategic goals in order to achieve optimal performance of manufacturing industry Practical implications: The internal and external environmental factors through the operating
and remote environments had effects on the strategy of manufacturing companies in Indonesia.
However, both internal and external environments did not affect the performance of
manufacturing companies in Indonesia. There was a tendency that manufacturing companies
were to observe the occurring macro-economic conditions. Manufacturing industries were
faced with the pressures from competition, customers and suppliers that affected companies’
revenue. Performance of manufacturing industries was more influenced by macro-economic
conditions that have not recovered from the global crisis.
Originality/value: This study was conducted to determine the effects of environmental
factors on the corporate strategy and performance. The effects of the industrial environments
are crucial since the more complicated changes in the industrial environments the greater the
impacts it has on the resources, structures and processes in the company. Environmental
factors of the industry present both organizational strengths and weaknesses, which would
affect the strategy and performance of the industry.
CitacióHidayat, Rachmad; Akhmad, Sabarudin; Mu’alim. Effects of environmental factors on corporate strategy and performance of manufacturing industries in Indonesia. "Journal of Industrial Engineering and Management", Juliol 2015, vol. 8, núm. 3, p. 763-782.
Dipòsit legalB-28744-2008
ISSN2013-0953
Fitxers | Descripció | Mida | Format | Visualitza |
---|---|---|---|---|
1326-7587-1-PB.pdf | 395,8Kb | Visualitza/Obre |