PARTNERSHIP STRATEGY ON THE BUSINESS PERFORMANCE OF AUTOMOTIVE LUBRICANT COMPANIES IN INDONESIA

Abstract

The purpose of this study is to examine the effect of the business environment and company assets on the partnership strategy and its implications for the business performance of automotive lubricant companies in Indonesia. The research method is carried out using an explanatory survey approach. The unit of analysis is an automotive lubricant company in Indonesia, where the observation unit is the management of the lubricant company. Observations were carried out using the cross-section and one-shot time horizon in 2020. Questionnaires were collected through a census conducted on 32 national automotive lubricant companies in Indonesia. Hypothesis testing is done using the Structural Equation Model (SEM) with partial least squares (PLS). This research was conducted to encourage the management of automotive lubricant companies in Indonesia to improve business performance, that it needs efforts through the development of an appropriate partnership strategy, built with business environment adaptations, especially in macro-environmental aspects and supported by the ability to develop company assets, especially intangible assets. The results of the study indicate that the partnering philosophy has the highest influence on business performance. Based on the results of these tests, the automotive lubricant industry business performance is more predominantly built by a partnership strategy, and to build an appropriate partnership strategy, it is necessary to encourage the company's ability to adapt to a business environment supported by the ability to develop company assets.

Keywords

• business environment
• company asset
• partnership strategy
• business performance
• lubricant companies