The Influence of Generic Strategy on The Sustainable Enterprise (A Study on Indonesian State Owned Enterprises (BUMN) Listed on Indonesia Stock Exchange 2012-2014)

Abstract

Existing business activity is increasingly developing, with business development also resulted in increased complexity in business processes that must be implemented by the company. To win competitions, companies have to be able to quickly adapt to changes in the business environment and can take appropriate decisions. The purpose of research is to find out the effect of generic strategy and corporate governance to sustainable enterprise with a set of investment opportunities as an intervening variable. Samples in this research are 10 BUMN (Indonesian State and Owned Enterprises) companies listed on the Indonesia Stock Exchange in 2012-2014. The method used is descriptive analysis method with analysis techniques using quantitative methods. This study uses secondary data. The analytical tool uses structural equation modeling (SEM) with partial least square (PLS). These results indicate that partially generic strategy affects to sustainable enterprise, corporate governance has no effect on sustainable enterprise, generic strategy does not affect the set of investment opportunities, corporate governance affect the set of investment opportunities and investment opportunities set effect on sustainable enterprise. The research fiding mentions that generic strategy needs to be implemented so that the company is able to achieve a sustainable enterprise. Corporate governance needs to be improved so that the value of the investment opportunity set high and set high investment opportunities are able to make sustainable enterprise.