The Resource Immobility, Strategic Capability, and Competitive Performance of State-Owned Enterprise in Indonesia: A Study Case of PT Pelindo III (Persero)

Abstract

The importance of State-Owned Enterprise (SOE) in Indonesian for the economic development and environment sustainability is evident. This study used PT PELINDO III (Persero), an Indonesian State Owned Enterprice a service provider in port terminals. The previous studies showed that in terms of strategic orientation and capabilities, SOE needs to compete in the business performance and PT PELINDO III (Persero) as well. Based on dynamic capability perspective, this study proposes that PT PELINDO III’s competitiveness is determined by its strategic capabilities to value, explore, apply and orchestrate its resources. Strategic capabilities have three elements in a company, they are resource immobility which can be explored, internal capabilities which has to be optimized, and, both institutional and social capitals which have to be maintained. Based on a discussion among with its managements, this paper revealed a conceptual framework in which resources immobility and strategic capabilities have a profound impact on the company’s competitive performance Keywords— resource immobility, strategic capability, competitive performance.