Building organizational innovation through strategic orientation: A lesson from cement industry in Indonesia

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Muafi, Joanna Tabor, Benny Wendry, Jun Surjanti, Rizqi Adhyka Kusumawati

2019 Quality - Access to Success Vol. 20 Article Cited by 3 Quartile

Abstract

The manufacturing industry is becoming one of the industries that are included in the agenda of the President of Republic Indonesia to have readiness to face industry 4.0. This research uses purposively selected samples of managers at 3 largest cement companies in Indonesia. The growing number of foreign cement industry in Indonesia make the domestic cement companies should have a strategic orientation (resource, market, entrepreneurship, and learning) in order to be able to increase the organizational innovation and organizational performance in the middle of a very high environmental uncertainty. Respondents were taken with proportional area random sampling techniques based on managers’ perception. The statistical technique is using Partial Least Square to test the hypothesis. The result concludes that environmental uncertainty has a great impact on the increase of strategic orientation (resource, market, entrepreneurship, and learning). Strategic orientation is required for companies to improve organizational innovation in facing the industry 4.0 that require a very high level of difficulty. © 2018, SRAC - Romanian Society for Quality. All rights reserved.

Affiliations

Management Department, Economic Faculty, Universitas Islam Indonesia, Indonesia; The Management Faculty, Czestochowa Univeristy of Technology, Poland; Business Administration Faculty, Universitas Brawijaya Malang, Indonesia; Management Department, Economic and Business Faculty, Universitas Negeri Suraabaya, Indonesia; Finance and Banking Department, Economic Faculty, Universitas Islam Indonesia, Indonesia