HOW THE PATTERN OF STRATEGY AND ORGANISATION STRUCTURE AFFECTING THE CORPORATE GOVERNANCE OF BANK IN INDONESIA

  • Muhammad Akbar Doctoral Program in Business Management Faculty of Economy and Business Padjajaran University
Keywords: corporate governance, corporate strategy, organisation structure, patterns of strategy, bank, Indonesia

Abstract

The increasingly recognized premium for good corporate governance is considered in the context of a globalizing economy, especially in service organisations, such as banks. After the Asian Financial Crisis, all the Asian countries have embarked on reform of corporate governance. The most frequent question from industrial players is whether a universal corporate governance system is either necessary or desirable. The aimed of this research is (1) to investigate the influences of pattern of strategy and organisation structure to the Corporate Governance using Indonesian banking data, (2) there is a distinct lack of research into the relationship between pattern of strategy and organisation structure and its impact to corporate governance. The research method used is quantitative method procedures that applied in order to answer the question regarding whether the elements set by structure of organization and some patterns of strategy apply to the corporate governance of Bank in Indonesia and semi-structured interview. The conclusions are: (1) pattern of strategy and organization structure have significant impact to the implementation of good corporate governance, which is not only realized strategy as the main factor but also need to pay attention to the intended strategy, (2) this kind of missing an appropriate strategy and organisation structure can be combined together to have a good awareness and understanding about corporate governance to improve bank performance, protect stakeholders’ interests and increase compliance to prevailing regulations and general code of conduct in the banking industry.

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Published
2018-08-24
Section
Artikel