Strengthening the competitiveness of state-owned enterprises

Abstract

State-owned enterprises (SOE)s tend to be rigid, bureaucratic, and hierarchical, making competition difficult. In addition, the change in fertilizer policy to a free market has suppressed the competitiveness of state-owned fertilizer companies in Indonesia. This research is intended to strengthen the competitiveness of SOE fertilizer companies. It employs Structural Equation Modeling (SEM) to elaborate data from a survey of 344 respondents at the middle-up management level in state-owned fertilizer-producing companies. The research results show that dynamic and marketing capabilities shape a company's competitiveness more strongly than strategic fit or knowledge management. Agility and resilience are vital for measuring a company's competitiveness. Therefore, SOE fertilizer producers must respond quickly and effectively by reconfiguring resources to change by forming an implementation task force for future business transformations. The agility and resilience of a company are the two most vital indicators of competitiveness of a state-owned fertilizer enterprise. Dynamic capabilities and marketing capabilities primarily influence competitiveness. Therefore, state-owned fertilizer enterprises must shift their attention to innovation and market orientation to enhance their future competitiveness.

Keywords

• Competitiveness
• Fertilizer
• Capability
• State-owned enterprise Data AvailabilityThe data presented in this study are available upon request from the corresponding author.