The mediating role of entrepreneur orientation in the relation between business process innovation strategy and competitive advantage in state owned mining company
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Institusion
Sekolah Tinggi Manajemen Ipmi
Author
Frieyandi, Dicka
Subject
H Social Sciences (General)
Datestamp
2022-06-16 08:53:07
Abstract :
Tin commodity could be affected by the social and political stability in tin-producing countries, global tin production stability, global manufacturing innovations, economic growth, and also the finding of new reserves all around the world. Indonesia safeguarded TIN commodities by using a TIN exchange, in this case was London Metal Exchange (LME), for transactions rather than direct sales. Because Indonesia TIN State-Owned Enterprise had to go through LME, it can be a hindrance to the firm's profitability. The firm recorded decrease in revenue since 2017 despite the increasing production. This situation was exacerbated by the global pandemic which resulted in a decline in all sectors, including the consumer electronics sector which was the main absorber of the tin industry. The firm believed that the reduction in profitability was due to flaws with existing legislation and working conditions in which employees lack an entrepreneurial mindset. To adapt to market conditions, regulations, and rising level of unpredictability, the firm had to take initiatives and regularly modify old business processes. These initiatives embodied in the formation of trading firm that served as a multipurpose vehicle to give flexibility for the firm?s holding that had lost when switching from direct selling to TIN exchange. This research followed the changing in Business Process Innovation Strategy (BPIS) that mediated by Enterprise Orientation (EO) could affect Competitive Advantage (CA) of the firm. It employed the PLS-SEM software to generate the structural model and analyze the 100-questionnaire data from firm?s employee that worked in operation or commercial division. The results were, from the three dimensions of EO, Risk Taking, Innovativeness, and Proactiveness, mediated all dimensions of BPIS to affect Competitive Advantage. The competitive advantage shaped the trading company to differentiate from other firms, having unique resource-capability, and also cutting cost to maximize the revenue for the firm?s holding.
Tin commodity could be affected by the social and political stability in tin-producing countries, global tin production stability, global manufacturing innovations, economic growth, and also the finding of new reserves all around the world. Indonesia safeguarded TIN commodities by using a TIN exchange, in this case was London Metal Exchange (LME), for transactions rather than direct sales. Because Indonesia TIN State-Owned Enterprise had to go through LME, it can be a hindrance to the firm's profitability. The firm recorded decrease in revenue since 2017 despite the increasing production. This situation was exacerbated by the global pandemic which resulted in a decline in all sectors, including the consumer electronics sector which was the main absorber of the tin industry. The firm believed that the reduction in profitability was due to flaws with existing legislation and working conditions in which employees lack an entrepreneurial mindset. To adapt to market conditions, regulations, and rising level of unpredictability, the firm had to take initiatives and regularly modify old business processes. These initiatives embodied in the formation of trading firm that served as a multipurpose vehicle to give flexibility for the firm?s holding that had lost when switching from direct selling to TIN exchange. This research followed the changing in Business Process Innovation Strategy (BPIS) that mediated by Enterprise Orientation (EO) could affect Competitive Advantage (CA) of the firm. It employed the PLS-SEM software to generate the structural model and analyze the 100-questionnaire data from firm?s employee that worked in operation or commercial division. The results were, from the three dimensions of EO, Risk Taking, Innovativeness, and Proactiveness, mediated all dimensions of BPIS to affect Competitive Advantage. The competitive advantage shaped the trading company to differentiate from other firms, having unique resource-capability, and also cutting cost to maximize the revenue for the firm?s holding.
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