Build Resilience to Changes in the Business Environment to Improve Company Performance

Saiful Hidayat, Margono Setiawan, Fatchur Rohman,Ananda Sabil Hussein
International Journal of Finance, Insurance and Risk Management, Volume 12, Issue 3, 93-107, 2022
DOI: 10.35808/ijfirm/326

Abstract:

Purpose: This study aims to find out how to make the company will be more resilient to changes in the business environment, through the development of a quality collaboration strategy, so that the company becomes less vulnerable and easily adapts to changes in the business environment that affect the company's performance. By studying how the effect of the business environment on collaboration strategies and company performance, and how the business environment affects company performance through collaboration strategies. Methodology: This study uses a quantitative research approach. Observations were made in a cross-section/one-shot, in 2022. The population of this study was the ISP industry in Indonesia, which amounted to 474 companies, and the unit of observation was the management. Samples were taken from as many as 240 respondents. Testing the causality hypothesis in this study used Structural Equation Modelling (SEM). Findings: The business environment has a significant direct effect on company performance and a significant indirect effect on company performance through collaboration strategies. The indirect effect of the business environment on company performance through collaboration strategies is more dominant than the direct effect of the business environment on company performance. Practical Implication: Efforts to anticipate and adapt to the changes in the business environment can do it by building and implementing a quality collaboration strategy to improve company performance. The macro-environment need to be anticipated and adapted first then the micro-environment. Originality: The development and implementation of a quality collaboration strategy can increase the company's resilience to changes in the business environment to achieve sustainable company performance.


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