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IJSTR >> Volume 8 - Issue 7, July 2019 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

The Influence of Business Strategy on Relationship Between Political Connection and Market Performance

[Full Text]



Muhammad Laras Widyanto, Eva Herianti, Sri Kurniawati, Amor Marundha



Political Connection, Low Cost Strategy, Differentiation Strategy, Market Performance



Political factor is one of the environmental factors influencing the success of business growth in developing countries such as Indonesia. This condition happens because capital market in developing countries such is managed under law supremacy, and resources allocation is also controlled and managed by government. The purpose of the research is to analyze and test the influence of business strategy on relationship between political connection and market performance. The research uses purposive sampling on manufacturing companies listed in Indonesia Stock Exchange period 2012 – 2016 using SMARTPLS 3.0 analytical tools. The result shows that political connection positively and significantly influences on market performance. While the research contributes that low costs and differentiation strategy do not moderate the influence of political connection on market performance. The research contributes that political connected companies (connected between government and military) may provide benefits, such as simplification on regulatory, network amongst other companies and regulation, and simplification for project winning with end result to increase sales, then it finally improves market performance.



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