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Back to Basics in the Importance of Market Orientation and Corporate Strategy to Bank Performances in Indonesia

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  • Yunisyaaf Yunizal Arif

Abstract

This study was to see market orientation and corporate strategy to Bank performance, specifically product sales development, financial performance growth and market share growth in Indonesia. Unit analysis surveyed was a twelve (12) public listed commercial bank with the flexibility in the product offered and geographic coverage belongs to the group of BUKU III and BUKU IV under the Bank Indonesia classification. This study used the statistical reliable and valid Instrumentation. Given little samples, as they tell to a corporate strategy which is only formulated by the bank's headquarters, the results of studies were processed using partial least square's methods. Observations show that the dimensions of customer orientation dominate the preference on the bank's corporate strategy, followed by internal coordination and the least being a competitor orientation. The market orientation variables (±85.5%) influenced the strategy. Further observations also show that the approach (84.4%) explained the bank performance%) whereas other factors (26.6%) reflect other models.

Suggested Citation

  • Yunisyaaf Yunizal Arif, 2019. "Back to Basics in the Importance of Market Orientation and Corporate Strategy to Bank Performances in Indonesia," American Journal of Economics and Business Administration, Science Publications, vol. 11(1), pages 78-85, December.
    • Handle: RePEc:abk:jajeba:ajebasp.2019.78.85
    DOI: 10.3844/ajebasp.2019.78.85
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    References listed on IDEAS

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    1. Pietro ALESSANDRINI & Giorgio CALCAGNINI & Alberto ZAZZARO, 2006. "Asset Restructuring Strategies in Bank Acquisitions: Evidence from the Italian Banking Industry," Working Papers 264, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    2. Kim, Chang-Soo & Mauer, David C. & Sherman, Ann E., 1998. "The Determinants of Corporate Liquidity: Theory and Evidence," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 33(3), pages 335-359, September.
    3. Hamada Fawzy Thabet Abuzid & Muzaffar Abbas, 2017. "Banks Performance and Impact of Market Orientation Strategy: Do Employee Satisfaction and Customer Loyalty Augment this Relationship?," International Review of Management and Marketing, Econjournals, vol. 7(2), pages 60-66.
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