Purpose: The relationship between strategic choices and performance in service firms in emerging markets has remained largely under-researched. We address this issue by studying the performance of financial institutions in the context of Indonesia's political, institutional and socio-cultural environment. Design/Methodology/Approach: Using institutional theory, we analyzed data collected using surveys and interviews with senior managers in Indonesian financial institutions. Findings: We find that the regulative and normative elements have forced organizations to incorporate the values set by the external institutional bodies. The organizations have undertaken structural isomorphism in response to culturecognitive elements, and differentiate themselves by focusing on the provision of quality customer service and enhanced customer satisfaction. Originality/Value: We provide new insights by studying how the political and institutional environment and choice of strategy influences performance in the services sector in emerging economies.
Abstract. Amirta R, Yuliansyah, Angi EM, Ananto BR, Setiyono B, Haqiqi MT, Septiana HA, Lodong M, Oktavianto RN. 2016. Plant diversity and energy potency of community forest in East Kalimantan, Indonesia: Searching for fast growing wood species for energy production. Nusantara Bioscience 8: 22-30. Nowadays, there is an increasing interest in intensifying the production and use of biomass to replace fossil fuels for the production of heat and electricity, especially for a remote area that generally abundance with the wood biomass resources including in East Kalimantan, Indonesia. In this work, diversity of plant species that commonly growth in community forest area of East Kutai District, East Kalimantan, Indonesia had been studied to point out their energy potency to be used as biomass feedstock for the electricity generated. Diversity of plant species in the community forest was evaluated by making 13 sampling plots with 20mx20m size approximately. Concurrently, the energy properties of plant biomass such as proximate and ultimate compositions were also analyzed using ASTM methods. Results showed that more than 30 species of tropical trees and wood shrubs were grown in the community forest. The presence of them was classified into two different growths of origins: natural and artificial plantation, and also three different categories of plant resources: tree species from logged over forest, commercial fast growing plant tree species for the fiber production and woody shrubs. The highest dominancy and productivity was found in Paraserianthes falcataria (L.) Nielsen since the wood biomass was artificially planted for the commercial purposes. Among the 31 plant species analyzed we found the highest energy potency was obtained from Cratoxylum cochinchinense (Lour.) Blume that produced 3.17 MWh/ton, and the lowest was from Trema orientalis (L.) Blume 0.97 MWh/ton. The woody shrubs species such as Vernonia amygdalina Delile., Piper aduncum L., Gliricidia sepium (Jacq.) Kunth ex Walp., Calliandra calothyrsus Meissner., Bridelia tomentosa Blume, Vitex pinnata L., Vernonia arborea Buch.-Ham. and Bauhinia purpurea var. corneri de Wit. were suitable to be used as sustainable feedstocks for the electricity generated and promising to be developed as energy plant species in the future using Short Rotation Coppice system (SRC).
Purpose This research aims to investigate the extent to which business strategy mediates the relationship between reliance on integrative strategic performance measurement (RISPM) and organisational performance. Design/methodology/approach A self-administered survey of 157 managers in Indonesian financial institutions was used to test direct and indirect effects among the hypothesised variables. Findings The findings indicate that business strategy has a full mediating effect on the relationship between RISPM and organisational performance. Originality/value This study indicates that performance measurement systems should be designed in conjunction with business strategies to obtain superior performance. More specifically, in the Indonesian financial institutions, applying a differentiation strategy is found to be most effective in gaining competitive advantage and superior performance.
Purpose-Considering the significant contribution of service sector of the whole contribution of the economics, this study aims to investigate the impact of strategic performance measurement sytstem (SPMS) on sustainability strategic outcomes in the industry through organizational learning and service strategic alignment. Design/methodology/approach-Using a survey study, 158 usable data were analysed using SmartPLS. Findings-The results show that service strategic alignment and organizational learning mediate the relationship between SPMS and performance for product differentiation companies. For cost leadership companies, the results indicate that there is no mediation of service strategic alignment and organizational learning on the relationship between SPMS and performance. Research limitations/implications-This study first provides evidence that SPMS improves performance through service strategic alignment and organizational learning for product differentiation companies in which innovation is crucial to thrive and succeed. Second, it introduces to the literature the characteristics of SPMS. Originality/value-New insights of implementation of SPMS in improving companies' performance in Indonesian financial institutions are provided.
Resorting to the Schatzki’s (2002) ‘site of the social’ theoretical construct and stance on the peculiar ‘sites’ of construction and institutionalisation of social practices, we aim to locate the use and efficacy of strategic performance measurement system (SPMS) in service sector organizations and at the lower hierarchical level, and its effect on role clarity, employees’ psychological empowerment and performance. This study aims to further the relevant literature, which covers the phenomenon in the manufacturing industry and at the upper level of the organizational hierarchy (Hall, 2008). A survey study of employees at the lower hierarchical level in the banking sector of the southern part of Sumatera including the provinces of Lampung, South Sumatera, Bengkulu and Jambi was conducted and data analyzed using SmartPLS. Our analysis of the empirical data we gleaned from our survey of 135 respondents endorsed the hypotheses set for the study confirming a positive impact of the use of CPMS on lower level employees’ role clarity and overall performance in service sector organizations, however, did not support CPMS’s effect on the employees’ ‘psychological empowerment’. The effect and efficacy of the use of SPMS on role clarify, performance and psychological empowerment in the manufacturing sector employees at the upper hierarchical level have already been empirically investigated (see Hall, 2008). This current study aims to not only extend such studies to the service industry but also contribute to the management accounting literature through extending the use of the strategic performance measurement system to employees at the lower hierarchical level in the service sector. It aims at apprising practitioners and policy-makers on the utility and limitation of the use of CPMS in these contexts.
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