A business strategy, operational efficiency, ownership structure, and manufacturing performance: The moderating role of market uncertainty and competition intensity and its implication on open innovation
This study examines the direct effect of internal factors within a business organization, including business strategy, operational efficiency, and ownership structure, on manufacturing performance. It also analyzes how these internal factors influence manufacturing performance when interacting with...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2023-06-01
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| Series: | Journal of Open Innovation: Technology, Market and Complexity |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2199853123001415 |
| _version_ | 1797391847800176640 |
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| author | Sofik Handoyo Harry Suharman Erlane K. Ghani Slamet Soedarsono |
| author_facet | Sofik Handoyo Harry Suharman Erlane K. Ghani Slamet Soedarsono |
| author_sort | Sofik Handoyo |
| collection | DOAJ |
| description | This study examines the direct effect of internal factors within a business organization, including business strategy, operational efficiency, and ownership structure, on manufacturing performance. It also analyzes how these internal factors influence manufacturing performance when interacting with external factors, namely market uncertainty and competition intensity. The study compares firms with proactive and defensive strategies regarding operational efficiency and manufacturing performance differences. It also compares manufacturing performance differences between firms with foreign and domestic ownership. The sample for this study includes manufacturing firms listed on the Indonesia Stock Exchange between 2014 and 2021. The findings indicate that business strategy, operational efficiency, and ownership structure positively and significantly affect manufacturing performance. Operational efficiency is higher in manufacturing when business competition increases. Under intense business competition, manufacturing firms with foreign ownership tend to have more competitive advantages than domestic ownership. Manufacturing firms that adopt proactive business strategies (prospectors and analyzers) perform significantly better than those with defensive strategies (defenders and reactors). |
| first_indexed | 2024-03-08T23:38:37Z |
| format | Article |
| id | doaj.art-4aa9905ba97349798fc9089e305af90d |
| institution | Directory Open Access Journal |
| issn | 2199-8531 |
| language | English |
| last_indexed | 2024-03-08T23:38:37Z |
| publishDate | 2023-06-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Open Innovation: Technology, Market and Complexity |
| spelling | doaj.art-4aa9905ba97349798fc9089e305af90d2023-12-14T05:22:13ZengElsevierJournal of Open Innovation: Technology, Market and Complexity2199-85312023-06-0192100039A business strategy, operational efficiency, ownership structure, and manufacturing performance: The moderating role of market uncertainty and competition intensity and its implication on open innovationSofik Handoyo0Harry Suharman1Erlane K. Ghani2Slamet Soedarsono3Faculty of Economics and Business, Universitas Padjadjaran, Dipati Ukur 35, Bandung 40132, Indonesia; Corresponding author.Faculty of Economics and Business, Universitas Padjadjaran, Dipati Ukur 35, Bandung 40132, IndonesiaFaculty of Accountancy, Universiti Teknologi MARA, Cawangan Selangor, Kampus Puncak Alam 42300, Selangor, MalaysiaIndonesia Ministry of National Development Planning, Taman Suropati No.2, Jakarta 10310, IndonesiaThis study examines the direct effect of internal factors within a business organization, including business strategy, operational efficiency, and ownership structure, on manufacturing performance. It also analyzes how these internal factors influence manufacturing performance when interacting with external factors, namely market uncertainty and competition intensity. The study compares firms with proactive and defensive strategies regarding operational efficiency and manufacturing performance differences. It also compares manufacturing performance differences between firms with foreign and domestic ownership. The sample for this study includes manufacturing firms listed on the Indonesia Stock Exchange between 2014 and 2021. The findings indicate that business strategy, operational efficiency, and ownership structure positively and significantly affect manufacturing performance. Operational efficiency is higher in manufacturing when business competition increases. Under intense business competition, manufacturing firms with foreign ownership tend to have more competitive advantages than domestic ownership. Manufacturing firms that adopt proactive business strategies (prospectors and analyzers) perform significantly better than those with defensive strategies (defenders and reactors).http://www.sciencedirect.com/science/article/pii/S2199853123001415Business strategyOperational efficiencyOwnership structureMarket uncertaintyCompetition intensity |
| spellingShingle | Sofik Handoyo Harry Suharman Erlane K. Ghani Slamet Soedarsono A business strategy, operational efficiency, ownership structure, and manufacturing performance: The moderating role of market uncertainty and competition intensity and its implication on open innovation Journal of Open Innovation: Technology, Market and Complexity Business strategy Operational efficiency Ownership structure Market uncertainty Competition intensity |
| title | A business strategy, operational efficiency, ownership structure, and manufacturing performance: The moderating role of market uncertainty and competition intensity and its implication on open innovation |
| title_full | A business strategy, operational efficiency, ownership structure, and manufacturing performance: The moderating role of market uncertainty and competition intensity and its implication on open innovation |
| title_fullStr | A business strategy, operational efficiency, ownership structure, and manufacturing performance: The moderating role of market uncertainty and competition intensity and its implication on open innovation |
| title_full_unstemmed | A business strategy, operational efficiency, ownership structure, and manufacturing performance: The moderating role of market uncertainty and competition intensity and its implication on open innovation |
| title_short | A business strategy, operational efficiency, ownership structure, and manufacturing performance: The moderating role of market uncertainty and competition intensity and its implication on open innovation |
| title_sort | business strategy operational efficiency ownership structure and manufacturing performance the moderating role of market uncertainty and competition intensity and its implication on open innovation |
| topic | Business strategy Operational efficiency Ownership structure Market uncertainty Competition intensity |
| url | http://www.sciencedirect.com/science/article/pii/S2199853123001415 |
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