Business strategy and performance in Indonesia’s service sector

Yuliansyah Yuliansyah (Department of Accountancy, University of Lampung, Bandar Lampung, Indonesia.)
Hussain G. Rammal (International Business, School of Commerce, University of South Australia, Adelaide, Australia.)
Elizabeth Rose (Department of Management, University of Otago, Dunedin, New Zealand.)

Journal of Asia Business Studies

ISSN: 1558-7894

Publication date: 3 May 2016

Abstract

Purpose

The relationship between strategic choices and performance in service firms in emerging markets has remained largely under-researched. This study aims to 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, the authors analyzed data collected using surveys and interviews with senior managers in Indonesian financial institutions.

Findings

The authors 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 culture-cognitive elements, and differentiate themselves by focusing on the provision of quality customer service and enhanced customer satisfaction.

Originality/value

The authors provide new insights by studying how the political and institutional environment and choice of strategy influences performance of the services sector in emerging economies.

Keywords

Citation

Yuliansyah, Y., Rammal, H. and Rose, E. (2016), "Business strategy and performance in Indonesia’s service sector", Journal of Asia Business Studies, Vol. 10 No. 2, pp. 164-182. https://doi.org/10.1108/JABS-07-2015-0094

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Publisher

:

Emerald Group Publishing Limited

Copyright © 2016, Emerald Group Publishing Limited

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