Factors Determining Bank Competitive Strategy: An Empirical Study on Local Development Banks (LDBS) in Indonesia

Abstract

Many studies have been investigating determinants of the company's competitive strategy. Nevertheless, there have insufficient studies conducted to investigate the determinants of competitive strategy on banking industry, particularly on Local development banks (LDBS). This study is aimed at filling in the literature. This study surveyed top executives of twenty-six local development banks in Indonesia and employed PLS approach to answer the research questions. The result shows that three groups of variables, i.e., innovation management, company resource management, and adoption of technology influence the development of competitive strategy in local development banks.

Keywords

• innovation management
• competitive strategy
• LDBS. PLS
• company resource management