State-owned enterprises’ performance in Indonesia: a strategic typology perspective

Abstract

Purpose State-owned enterprises’ (SOEs) goals are perceived as two-sided blades, providing goods or services to the public on one side and escalating the government’s wealth on the other side. Treating the SOEs, government encounters the problem of injection strategy or privatize them. At the same time, managers have the option to formulate the SOEs strategy to boost performance. By using Miles and Snow’s typology strategy and the above factors, this paper investigates those impacts on Indonesia’s SOEs’ performance. This study aims to propose strategic typology as the main predictor with other variables such as the size, ownership structure, market competitiveness and capital subsidy on SOEs. Design/methodology/approach The study uses archived SOEs’ financial data from 2014 to 2018 to predict the financial performance using ordinal logistic regression analysis. The additional factors, such as firm size, ownership structure, market concentration and capital subsidy, are incorporated. Findings The result demonstrates that SOEs strategic typology, market concentration, size, ownership structure and capital subsidy significantly affect Indonesia’s SOEs’ performance. Originality/value To the best of the authors’ knowledge, this paper is the first elaborating government policies for SOEs, such as capital subsidy and state ownership, on the perspective of Miles and Snow’s strategy-performance relationship. Correspondingly, the paper contributes to examine the Indonesian characteristic SOE type with the performance. No single study has previously explored this relationship in the context of SOE in Indonesia.

The strategic behaviour of cooperatives: their adaptive cycle

“…The strategic typology of Miles and Snow (1978) is one of the most important in the strategic management field (Dent, 1990;Hambrick, 2003;Bouhelal and Kerbouche, 2016;Ingram et al, 2016). It has been applied to SMEs in Australia (Blackmore and Nesbitt, 2013), strategic business units in the USA (DeSarbo, Di Benedetto, Song and Sinha, 2016), tourist firms in Turkey (Avci, Madanoglu and Okumus, 2011), state-owned enterprises in Indonesia (Apriyantopo, Aprianingsih and Kitri 2022), electronic and engineering firms in the UK (O' Regan and Ghobadian, 2006), or manufacturing enterprises in Poland (Ingram et al, 2016) 2 . This widespread application in multiple contexts and types of companies evidences its adaptability to different and varied scenarios and its universality (Bouhelal and Kerbouche, 2016).…”

Desarrollo, innovación y sostenibilidad de las exportaciones del Perú hacia Estados Unidos

“…El número de empresas que participan en las exportaciones de un país es una medida que da a conocer la sostenibilidad empresarial [34]. Un mayor número de empresas exportadoras puede indicar una mayor diversificación en términos de los sectores y los productos que se exportan [35].…”

The Effect of Business Strategies and Financial Reporting Irregularities On Audit

“…Miles & Snow's typology distinguishes strategies based on the organization's adaptation process to changes in its environment, including prospector, defender, and analyzer business strategies (Apriyantopo, Aprianingsih & Kitri, 2022;Rahman & EDT, 2020;Afiff, Fontana & Zubaedah, 2013). The prospector business strategy is a business strategy that tends to expand the market and look for new markets for its products so that it always makes innovations related to the products it produces.…”