Entrepreneurship Orientation for BUMN Performance Achievement Through Organizational Learning and Innovation as Mediator

Abstract

Contribution of SOE Financial Performance to GDP As of December 31, 2016, total assets of BUMN reached Rp 6.325 trillion, or equivalent to 42% of GDP. As of December 31, 2012, total SOEs operating revenues reached Rp1,754 trillion (19% of GDP) with a Net Profit of Rp166 trillion (1.6% of GDP). However, if analyzed more deeply in terms of ROE (return on equity) and ROA (return on assets) from 2012 (17%) to 2016 (13%) seen that the value tends to decrease. This indicates that the efficiency of the use of assets, profits, and other improvements are not well used, and some SOEs tend to lose to lower the performance of SOEs as a whole. This research is to know the influence between Orientation of Entrepreneurship, Organizational Learning, and Innovation to Performance of State-Owned Enterprises (SOEs) in Indonesia. Orientation Entrepreneurship attracted much attention to be studied in improving Company Performance. However, there are still very few studies that can explain the influence between the Orientation of Entrepreneurship and the Role of Organizational Learning and Innovation mediation and show how important the Company Performance is. This study uses 4 variables, namely Orientation of Entrepreneurship, Organizational Learning, Innovation, and Corporate Performance. The Survey method to 38 respondents of Indonesia’s State-Owned Enterprises in Indonesia was conducted and analysis of data using structural equation modeling partial least square (SEM - PLS) was used to test the 11 hypotheses. The new findings from this research are the role of the moderator of Organizational Learning and Innovation in improving Corporate Performance in sequence. Specific application of corporate strategy tends to be connected with Entrepreneurial Orientation and Organizational Learning and Innovation as a mediator. The findings would be expected to suggest that the company might increase its performance by creating a high level of entrepreneurial orientation to support Organizational Learning and Innovation in sequence as their organization strives for specific competitive goals. This also means that to improve the performance of SOEs, the company should have a good Entrepreneurship Orientation and utilize Organizational Learning to create Innovation, where the two variables have a large influence (predictor effect) which will ultimately improve the performance of SOEs better than if not through Organizational Learning and Innovation.