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 communities’ welfare as it is mandated in the constitution. If traced based on its face value, the profit of Indonesian SOE is continue to increase steadily every year. However, on the other hand there is a 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 still possible to get a higher profit. The objectives of this study are to get assessment regarding (1) correlations of corporate resources with corporate strategy, and (2) whether corporate resources and corporate strategy are affecting corporate performance. For private companies, these three variables are not conflicting because the company owner is not the law maker. However, for state-owned enterprises, we need to make a study whether these three variables are conflicting because at the state-owned companies, the government roles are ambiguous. Government plays a role as the internal factor (as the corporate owner) and also plays a significant role as regulator/lawmaker (external factor). The finding shows that there are correlations between corporate resources and corporate strategy. Corporate resources and corporate strategy do affect corporate performance, directly or simultaneously.