International Journal of Scientific & Technology Research

IJSTR@Facebook IJSTR@Twitter IJSTR@Linkedin
Home About Us Scope Editorial Board Blog/Latest News Contact Us

IJSTR >> Volume 5 - Issue 4, April 2016 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

The Role Of Dynamic Capability In Supporting Transformation And Sustainability Of Permodalan Nasional Madani Ltd

[Full Text]



Harry Sutanto



Dynamic Changes, Management Holistically, Dynamic Capabilities, Financial Inclusive, Poverty Alleviation, Local Monetiing, Grand Strategy of Transformation, First Transformation 2009-2013, Second Transformation 2014-2018, Small, Medium Enterprises Center, Embedded Concurrent Strategy, Phenomenological Approach, Sustainable Competitive Advantage, and Sustainability Innovation



This research is motivated by the empirical facts that although the Micro, Small, Medium Enterprises and despite getting optimal support the Indonesian government in recognition of the significance of its role in supporting the nation's economy, has experienced stagnation of business growth reflected by lower vertical mobility in the form of small industrial upgrading into secondary industries than medium industrial decline into a small industry. Permodalan Nasional Madani Lt.d ("the company") with a status and legal domicile as a financial state owned enterprise to support Micro, Small, Medium Enterprises through financing (as a financial solution) and coaching (as a solution of non-financial) to form a strong, independent, and be able to create new jobs.In the period 2009-2013, the company has implemented Transformation First, in response to the dynamic changes facing, as well as an increase in competence, fluctuations in economic conditions and other related matters that put the company in a sharp business complexity. The success of the company carrying out the First Transformation 2009-2013, both in a significant improvement and performance management of the company, became the starting point in the implementation of the Second Transformation 2014-2019 and further measures to achieve organization sustainability.The phenomenon of the company's success in implementing the 2009-2013 First Transformation considered highly supported by the formulation and implementation of dynamic capability approach strategy so as to change the paradigm of management of the company from its original direction as financial state owned enterprise, with the full support of the government, into business-oriented institution to the achievement of sustainable advantage (sustainable profit) and supported by governance (governance) good company. This research is in the areas of change management and strategic management more specifically on the development of the concept of dynamic capabilities in the management of the company. The aim of this study was to obtain an empirical and scientific evidence for the formulation and implementation of dynamic capabilities approach, especially because although the concept began to be widely accepted, but the empirical evidence that supports the concept still scarce. Data were analyzed by using an embedded concurrent mix method strategy and the phenomenological approach, and include in-depth analysis to assess the extent of the dynamic capabilities have been implemented to improve corporate performance and achieve long-term goals as Small, Medium Enterprises Center in 2028 and reached the level of sustainability. Combining quantitative and qualitative data is to better understand (topic) research problem, namely dynamic capabilities approach in support of the First Transformation 2009-2013 in the company. to convert qualitative data (in the form of descriptive insights and observations) with quantitative (numerical) data. Therefore, based on the objectives to be achieved, the category of the purpose of this study is (a) an evaluative, because it is not only limited to the understanding of the causes of behavior and opinions on the main topic of research but also to evaluate the results and provide an explanation for the causes of related conditions occur; and (b) prediction of conditions that occur after the study is completed by using the results of the study, which also serves as a basis for decision making in the future. The general conclusion of the research is the dynamic capability has been implemented to support the company's success in the First Transformation 2009-2013, in particular based on a sense of urgency for the decline in the performance of companies that need to be dealt with radical changes but purposeful and systematic as well as the choice of companies to remain focused on the business SMEs & K which is still a very big potential. To further support the company's success, both in Advanced Transformation and the existence of the company in carrying out its roles and functions to support the business development of SMEs & K in Indonesia, the dynamic capabilities approach should remain in place and run with the best. For advice on the research and writing of this dissertation is (a) the systematic expansion of research to other companies with advanced customization; (b) further research to determine and prove the relationship between organizational capabilities and financial performance to determine the financial proof of continuous innovation as a sustainable innovation (sustainable innovation).



[1] Afiff, Faisal, 2013. http://sbm.binus.ac.id/2013/08/12/manajemen-perubahan-bagian-15-selesai.

[2] Amit, R. and Schoemaker, P.J., 1993. Strategic Assets and Organizational Rent. Strategic Management Journal, 14, 33-46.

[3] Argyris, C. 1993. Knowledge for Action: A Guide to Overcoming Barriers to Organizational Change. USA: Jossey-Bass Wiley.

[4] Arkwei, Cynthia Adorkor, 2007. The Process of Creating Dynamic Capabilities. Loughborough University-United Kingdom, Dissertations.

[5] Asian Development Bank, 2000. Finance for the Poor: Microfinance Development Strategy. Manila: Asian Development Bank.

[6] Azhar, Marhenda Arfan, 2010. The nature of Future Leaders on Leadership Youth Organization. Graduate Program National Security Assessment, Leadership Development Studies Concentration. Jakarta: University of Indonesia.

[7] Fuel, AA; Hashim F; Ahmad H; Isa, FM and Dzakaria, 2009. Distinctive Capabilities and Strategic Thrust of Malaysia's Institution of Higher Learning. International Journal of Marketing Studies 1.

[8] Bank Indonesia, 2012. The Indonesian Economic Report 2012. Retrieved September 21, 2013 from http://www.bi.go.id/NR/rdonlyres/EA0E9CE7-48EE-4C1B-A326.

[9] Bank Indonesia, 2006 Blueprint for Rural, JakartaL Bank Indonesia.

[10] Bank Indonesia, in 2003, Empowerment Consultant Finance / Escort SMEs & K Partners Bank, Jakarta.

[11] Barney, Jay B, and William S. Hesterly, 2012. Strategic Management and Competitive Advantage: Concepts and Cases. Fourth Edition. USA: Pearson Prentice Hall.

[12] Barney, Jay B, 2008. Resource Based Theory: Creating Sustaining Competitive Advantage. USA: Oxford University Press.

[13] Barney, J.B., 2001. Firm Resources and Sustained Competitive Advantage. Journal of Management, 17, 99-120.

[14] Barney, Jay B, and William S. Hesterly. 2010. Strategic Management and Competitive Advantage: Concepts and Cases. Third Edition, Pearson Prentice Hall, USA.

[15] Barney, J.B, 1986. Strategic Factor Markets: Expectations, Luck, and Business Strategy. Management Science, 32 (10), 1231-1241.

[16] Barton, Dorothy Leonard, 1998. Wellsprings of Knowledge: Building and Sustaining the Sources of Innovation. Boston Massachussetts: Harvard Business School Press.

[17] Bates, T. 1989. An Analysis of Small Business Size and Rate of Discontiuance. Journal of Small Business Management. 27 (4), 1-7.

[18] Baum, Joel A.C, 2005. The Blackwell Companion to Organization. USA Blackwell Publishers, Ltd.

[19] Belcourt, M, Burke, R.J., and Lee-Gosselin, H. 1991. The glass box: Women business owners in Canada. Canadian Advisory Council on the Status of Women. Ottawa, Ontario.

[20] Berryman, J., 1983. Small Business Failure and Bankcruptcy: A Survey of the Literature. European Small Business Journal 2, 47-59.

[21] Beverland, Michael and Lockshin, Lawrence S., 2004. Crafting a Competitive Advantage: Tempering Entrepreneurial Action-Based Positioning with Values. Qualitative Market Research Volume 7, .ProQuest Psychology Journals.

[22] Bilgin, Mer. PEARL 2009. Model: Gaining Competitive Advantage through Sustainable Development. Journal of Business Ethics (2009) 85: 545-554 _ Springer, 2009. DOI 10.1007 / s10551-009-0210-1.

[23] Bitar, Jay, 2004. A Contingency View of Dynamic Capabilities. Chaire management stratégique international Walter-J.-Somers, HEC Montréal cahier de Recherche N ° 01-05. ISSN: 1711-6309.

[24] Blomqvist, Kisimarja and Seppänen, Risto, 2011. Bringing Together the Emerging Trust and Dynamic Capabilities-Collaboration and Trusy as Focal Concept. Lapperanta-Finland: Telecom Business Research Center, Lappeenranta University of Technology.

[25] Borch, O.J. Buiding 2004. Dynamic Capabilities for Strategic Entrepreneurship in SMEs, NCSB 2004 Conference, 13th, Nordie Conference on Small Business Research.

[26] Bungin, Burhan, 2008. Qualitative Research Methods. Jakarta: King Grafindo Perkasa.

[27] Bungin, Burhan, 2007. Qualitative Research Methodology-Actualization Methodological Directions for Contemporary Arts, Varian. Jakarta: King Grafindo Perkasa.

[28] CGAP, 2004. Key Principles in Microfinance. Washington DC: www.cgap.org Chandler, G.N. & Jansen, E. 1992. The Founder's Self-assesed Competence and Company Performance. Journal of Business Venturing. 7: 223-236.

[29] Charitonenko, Stepanie and Afwan, Iswah, 2003. Positive Approach to Microfinance commercialization. Manila: Asian Development Bank.

[30] Checkland P, and Scholes J. 1990. Soft System Methodologies in Action. New York (US): John Wiley & Sons.

[31] Checkland P. 1981. System Thinking System Practice. Chichester (GB): John Wiley & Sons.

[32] Chen, HH; and Lee, PY, 2008. The Driving Drivers of Dynamic Competitive Capabilities: A New Perspective on Competition. European Business Review 21.

[33] Chesbrough, H., and Rosenbloom, R.S. 2002. The Role of the Business Model in Capturing Value from Innovation: Evidence from Xerox Corporation's Technology Spin-off Companies. Industrial and Corporate Change, 11 (3), 529-555.

[34] Cohen, J. and Levinthal, D.A., 1999. Absorptive Capacity: A New Perspective on Learning and Innovation. Administrative Science Quarterly, 35 (1), 554-571.

[35] Collins, D.J. 1994. Research Note: How Valuable are Organizational Capabilities? Research Notes. Strategic Management Journal, Winter Special Issues, 15, Hal. 143-152.

[36] Coombs, R., 2000. Technology and Business Strategy. In The Handbook of Industrial Innovation, eds. M. Dodgson and R. Rothwell. Cheltenham: Edward Elgar.

[37] Cormode, Scott. 2009 Technical and Adaptive Change. http://leadership.fuller.edu/Leadership/Resources
Creswell, J. 2009, translated by Achmad Fawaid, 2014. Qualitative, Quantitative and Mixed Methods Approach 3rd Edition (Indonesian title: Approach Qualitative, Quantitative and Mixed). USA-California: Thousand Oaks 91320. 2009 (publisher Indonesia: Library Student, Jakarta).

[38] Creswell, J. 2012. Educational Research: Planning, Conducting and Evaluating Quantitative and Qualitative Research 4th Edition. Upper Saddle River, NJ: Pearson Education.

[39] D'Aveni, R.A., 1994. Hypercompetition: Managing the Dynamics of Strategic Manoeuvring. New York: The Free Press

[40] David, Fred R., .2011. Strategic Management Concepts. 13th ed. New Jersey: Pearson Prentice Hall.

[41] Day, George S; and Nedungadi, Prakash. Managerial 1985. Representation of Competitive Advantage. Academy of Management Review. 10 (4), 696-709.

[42] Day, George S; and Nedungadi, Prakash. Managerial 1994. Representation of Competitive Advantage. Journal of Marketing, Volume 58. USA, Chicago: American Marketing Association.

[43] Day, George S .; and Wensley, Robin. 1988. A Framework for Diagnosing Competitive. Journal of Marketing, April 1988, 52.2: Proquest.

[44] Dess, G. G., Lumpkin, G. T., & Eisner, A. B. (2005). Strategic Management: Creating Competitive Advantages. McGraw-Hill / Irwin.

[45] Dierickx, I. and Cool, K., 1989. Asset Stock Accumulation and Sustainable Competitive Advantage. Management Science, 35, 1504-151.

[46] Dolinsky, Arthur. L, Caputo, Richard.K, and Pasumarty, Kishore. 1994. Long -term Entreprenuershio Patterns: A national Study of Black and White Female Entry and Stayer Status Differences. Journal of Small Business Management, Vol. 32. Pp: 18-26.

[47] Dougherty, D. and Hardy, C. 1996. Sustained Production Innovation in Large, Mature Organisations: Overcoming Innovation-to-organization Problems. Academy of Management Journal, 39 (5), 1120-1153.

[48] Douma, Sytse and Hein Schreuder. 2013. Economic Approaches to Organizations. 5th edition. London: Pearson [1] ISBN 0273735292 • ISBN 9780273735298.

[49] Drucker, Peter. F. 1985. Innovation and Entrepreneurship: Practice and Principles. Harper and Row.

[50] Duncan and Moores. 1989. Residual Analysis: A Better Methodology for Contingency Studies in Management Accounting. Journal of Management Accounting Review. Vol. 1. 1989.

[51] Durand, Rudolph., 2012. Advancing Strategy and Organization Research in Concert: Towards and Integrated Model. Strategic Organization 2012 10: 297.

[52] Eisenhardt, Kathleen M. and Martin, Jeffrey A., 2000.

[53] Dynamic Capabilities: What are They ?. Strategic Management Journal (Wiley-Blackwell) 21 (10/11): 1105-1122. Retrieved 2012-05-23.

[54] Ekmekçi, original Küçükaslan, 2010. The Importance of P {roduct Global Positioning and Branding for Sustaining Competitive Advantage within the Companies' Global Marketing Strategy. USA: Chinese Business Review, ISSN 1537-1506, Apr. 2010, Volume 9, No.4 (Serial # 82

[55] Epstein, S. 1993. Implication of Cognitive-experiential self-theory for Personality and Developmental Psychology. Washingon DC. American Psychological Association.

[56] Eriyatno and Liesa, L. 2014. The Science Systems Volume 2: Enhance Integration and Coordination Management. Center for Systems. Surabaya: Publisher Gunawidya.

[57] Eriyatno, 2012. System Science Volume 1: Improving Quality and Effectiveness Management. Center for Systems. Surabaya: Publisher Gunawidya.

[58] Eriyatno, Sofyar F. 2007. Policy Research: Research Methods for Postgraduate. Bogor (ID): IPB Press.
Firmanzah, 2012. SOE CEO and Business Transformation. Tempo magazine.

[59] French, Wendell L et al, 2000 Organization Development and Transformation. Singapore: McGrall-Hill Irwin.

[60] Fuchs, P.H., Mifflin, K.E., Miller, D. and Whitney, J.O., 2000. Strategic Integration: Competing in the Age of Capabilities. California Management Review, 42 (3) 398 B. Lawson & D. Samson

[61] Fujimoto, T. 2000. Evaluating Manufacture Systems and Ex Post Dynamic Capabilities: A Case of Toyota's Assembly Operations. In The Nature and Dynamics of Organizational.

[62] Garratt, Bob. 2000. The Twelve Organizational capablities. London: Harper

[63] Gartner, W. 1985. A Conceptual Framework for describing the Phenomenon of the New Creation. Academy of Management Review. 10 (4), 696-709.

[64] Ghobadian, Abby and O'Regan, Nicolas, 2006. The Impact of Ownership on Small Firm Behaviour and Performanmce. International Small Business Journal

[65] Ghozali, Imam, 2008. Applications Multivariate Analysis with SPSS Program. 4th edition. Semarang: Diponegoro Publisher Agency.

[66] Gordon, H. and, Ian, 2002. Targeting Competitor, Winning the Battle for Market and Customer Share. Canada: John Wiley and Sons.

[67] Gordon, George G. and Nancy DiTomaso. 1992. Predicting Corporate Performance from Organizational Culture. Journal of Management Study, Department of Business Administration. USA: New Jersey, Rutgers University, Newark
Grant, R.M, 1996. Toward a Theory of Knowledge Based theFirm. Strategic Management Journal, Winter Special Issues, 17.

[68] Grant, Robert M. 1991. The Resource-Based Theory of Competitive Advantage: Implication for Strategy Formulation. California Management Review, Vo .. 33, Iss: 3.

[69] Habsari, Anggun Nur. 2012. Relations with the Transformative Leadership Employee Motivation at PLN Malang Area. Thesis.

[70] Hage and Aiken. 1967. Program Change and Organizational Properties: A Comparative Analysis. American Journal of Sosiology. Vol 72. No. 5. 1967

[71] Hair, Joseph F. et al, 2010. Multivariate Data Analysis as a Global Perspective. USA: Pearson Prentice Hall.
Hamel, G., 1998. The Strategy Innovation and the Quest for Value. Sloan Management Review, Winter, 7-14

[72] Hamel, G. and Prahalad, C.K., 1994. Competing for the Future: Breakthrough Strategies for seizing Control of Your Industry and Creating the Markets of Tomorrow. Boston, Mass: Harvard Business School Press Hardjanto, Imam. 2006. Local Capacity Development (Local Capacity building). Malang: Graduate of UB.

[73] Helfat, Constance E. et al, 2007. Dynamic Capabilities: Understanding Strategic Change in Organizations. Oxford, USA: Blackwell.

[74] Helfat, C.E. and Peteraf, M.A. 2003. The Dynamic Resource-based: Capability lifecycles. Strategic Management Journal, 24 (10), 997-1010.

[75] Henderson, R.M. & Clark, K.B, 1990. Architectural Innovation: The Re-configuration of Existing Product Technologies and the Failure of Established Firms. Administrative Science Quarterly, 35 (1), 9-31

[76] Hesselbein, Frances and Goldsmith, Marshall, 2009. The Organization of the Future. San Francicso: Jossey-Bass
Hickman, Craig R. and Silva, Michael A. 1986. The Workbook for Creating Excellence. New York and Scarbourouh, Ontario: New American Library.

[77] Hitt, Michael A, Ireland, R. Duane, and Robert E. Hoskinsson, 2003. Strategic Management: Toward the Era of Competition and Globalization. Jakarta: publisher.

[78] Holmstrom, J. and Boudreau, M.C. 2006. Communicating and Coordinating: Occasions for Information Technology in Loosely Coupled Organizations. AGORA Vol. 2, No. 1, (2014). Information Resources Management Journal (IRMJ), 19 (4), 23-38.

[79] Jakarta Consulting Group. 2010. Managing Business Transformation. http://www.jakartaconsulting.com/publications/articles/organization-development/mengelola-transformasi-bisnis
Johnson, Gerry and Scholes, Kevan, 2002. Exploring Corporate Strategy, Text and Cases. Prentice-Hall Europe.

[80] Jones, John; Aguirre, De Anne and Calderone. 2010. 10 Principles of Change Management. Jakarta: PT Elex Media Kompetindo

[81] Jorna, R., 2006. Sustainable Innovation. The Organisational, Human and Knowledge Dimension. Sheffield: Greenleaf Publishing Ltd, United Kingdom.

[82] Jowitt, Henrietta and Lury, Giles, 2012. Is It Time to reposition Positioning. Journal of Brand Management, Volume: 20, Issue: 2. United Kingsom, Basingstoke. Palgrave Macmillan

[83] Kanter, R.M., 1989. Swimming in Newstreams: Mastering Innovation dilemmas. California Management Review, 45-69
Karno, B. Benedictus. 2008. Dynamic Capabilities for Building a Sustainable Competitive Advantage. The 2nd National Conference UKWMB.

[84] Kasali, Rhenali. 2006. Change. Pusataka PT Gramedia Utama, Jakarta

[85] Key, John C; Yavas, Ugur and Riecken, Glen. 1994. Importance-Performance Analysis: A Case Study in Restaurant Positioning. International Journal of Retail & Distribution Management, Volume: 22, Issue: 5. United Kingdom, Bradford; Emerald Group Publishing, Limited. ProQuest document ID: 210969104

[86] Klein, Daniel B. 2012. Knowledge and Coordination. New York: University Press

[87] Kogut, B. and Zander, U., 1992. Knowledge of the Firm, Combinative Capabilities, and the Replication of Technology. Organization Science, 3, 383-397

[88] Lamiya, Morshed, 2004. To Expand Microfinance for Poverty Alleviation, What is the Main Constraint? Capital or capacity building? Experience of Grameen Trust, Grameen Trust ofn CGAP., Www.cgap.org
Lautman, Martin R, 1993. The ABCs of Positioning. Marketing Research. American Marketing Association.

[89] Klein, Jeremy. 2002. Beyond Competitive Advantage. USA, Chicester: Wiley Periodicals, Inc.
Kotler, Philip and Caslione, John A. 2009. Chaotics: The Business of Managing and Marketing in the Age of Turbulence. USA; Amazon

[90] Kotler, Philip; Jstusripitak, Somkid and Maesincee, Suvit, 1997. The Marketing of Nations. New York: The Free Press.
Kotler, Philips. 1997 Marketing Management (Translation) Volume I, Jakarta: PT Prehallindo Kuncoro, Mudrajad 2006. Strategy: How Achieving Competitive Advantage. Publisher, Jakarta

[91] Kuswarno, Engkus, 2009. Phenomenology: Conception, Guidelines and Examples Research.. Bandung: Widya Padjadjaran

[92] Lawson, Benn and Samson, Danny, 2001. Developing Capability Innovation in Organizations: A Dynamic Capabilities Approach. International Journal of Innovation Management, Vol. 5, No. 3 (September 2001) pp. 377-400
Lee, Chong C and V. Grover Mediation Between 2000 Exploring Environmental and Structural attributes: The penetrations of Communication Technologies in Manufacturing Organizations. Journal of Management Information System. Vol 16. No. 3. 2000.

[93] Lodish, Leonard; Howar, Lee Morgan and Kallianpur, Amy, 2001. Positioning, Targeting and Segmentation. United States of America: John Wiley and Sons, Inc.

[94] MacGregor, S.P., Espinach, X., Fontrodona, J., 2007. Social Innovation: Using Design to Generate Business Value through Corporate Social Responsibility. Paper presented at the International Conference on Engineering Design, Paris, France.

[95] Maijanen-Kyläheiko, P .; Jantunen, A. and Hujala, M., 2012. Dominant Logic and Dynamic Capabilities as Determinants of Strategic Renewal -Case of Public Broadcasting. ISPIM Conference Proceedings, p1. Masterindo Indonesia (2011). Retrieved from http://masterindoindonesia.com.

[96] Marimin. 2010. The Theory and Application of Expert System in Managerial Technology. Bogor: IPB Press.
Marquardt, Michael. J. 2000. Action Learning and Leadership. The Learning Organization Journal, Volume Number 5-2000 - 223-240.

[97] Marquardt, Michael J. 2000. Building the Learning Organization: A System Approach to Quantum Improvement And Global Success New York, USA: McGraw Hill.

[98] Milen, Anelli. Basic Handbook 2004. Capacity. Translated freely. Yogyakarta: Yogyakarta Pondok Library.
Moeljono, Djokosantoso, 2004. reinvention of SOEs. Jakarta: PT Elek Media Komputindo.

[99] Morgenson, M. Frederick; De Rue, D. Scott and Karam, Elizabeth, P. 2009. Leadership in Teams: A Functional Approachto Understanding Leadership Structure and Process. Journal of Management Online, September 23, USA.