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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]

 

AUTHOR(S)

Harry Sutanto

 

KEYWORDS

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

 

ABSTRACT

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).

 

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