Factors Affecting Poor Strategy Implementation

  • Muh. Darmin Ahmad Pella Bogor Agricultural University
  • Ujang Sumarwan Bogor Agricultural University
  • Arief Daryanto Bogor Agricultural University
  • Kirbrandoko Kirbrandoko Bogor Agricultural University
Keywords: strategic management

Abstract

Research on strategy implementation has been developed for three decades, yet only a few studies focus on factors affecting poor strategy implementation. This research evaluates the influence of strategy implementation problems on strategy implementation success and firm performance. This survey was conducted in 60 Indonesian companies and the data were statistically analysed using Structural Equation Modeling Partial Least Square (SEM PLS). The results show significant influence of strategy implementation problems on the degree of successful strategy implementation and perceived firm performance. The seven major obstacles that have impact on poor strategy implementation are: problems related to corporate scorecard, key performance indicators, information technology, competence, performance appraisal, strategy management office, and financial support.

Author Biographies

Muh. Darmin Ahmad Pella, Bogor Agricultural University

PELLA, Muh. Darmin A. is an alumnus of Psychology, Universitas Gadjah Mada, majoring in Industrial Psychology. He is also an alumnus of the University of Indonesia, Masters in Management. He is now completing the Doctoral Program in Graduate School of Management and Business, Bogor Agricultural University. His career experiences include position as Management Training Head at PT. Toyota-Astra Motor (TAM), HRD Division. In 2000-2002, he worked as Training & Development Manager PT. Astra International - Toyota Sales Operation (AUTO 2000). Late in 2002, he voluntarily resigned from Astra to become Managing Partner AIDA Consultant, providing consulting management system on many national companies. He has published some books such as Tujuh Langkah Transformasi Manajemen Kinerja (Republika, 2010), and Talent Management: Mengembangkan SDM untuk mencapai Pertumbuhan dan Kinerja Prima (Gramedia, 2011).
    Author contact’s details: Graduate School of Management and Business, Bogor Agricultural University, Indonesia; Phone: (021)79192523; 081380027919: Fax: (021)79194358; E-mail: mdarmin@yahoo.com.sg, or dap@aidaconsultant.com.

Ujang Sumarwan, Bogor Agricultural University

SUMARWAN, Ujang is a Professor of Consumer Behavior in the Graduate Program of Management and Business and in the Department of Family and Consumer Sciences, College of Human Ecology, at Bogor Agricultural University (Institut Pertanian Bogor), Bogor Indonesia. He is an Assistant Director for Academic and Student Affairs in the Graduate Program Of Management and Business-Graduate School-Bogor Agricultural University since August 2008. He earned degrees in Agricultural Economics at Bogor Agricultural University in 1985, and a Ph.D. in Consumer Studies at the Department of Human Development and Family Studies, College of Family and Consumer Sciences, Iowa State University, Ames, Iowa USA. His dissertation’s title was Socioeconomics and Psychological Factors Influencing Household Debt. He received The HIBAH BERSAING Award from The Department (Ministry) of National Education, Republic of Indonesia, for the Best Researcher for Social Sciences in 2000 for his research on Model of Food Consumption Behavior of Urban and Rural Consumers.
    Author contact’s details: Department of Family and Consumer Sciences, Graduate School of Management and Business, Bogor Agricultural University, Indonesia, E-mail: sumarwan@mb.ipb.ac.id.

Arief Daryanto, Bogor Agricultural University

DARYANTO, Arief is a Director of Graduate School of Management and Business, Bogor Agricultural University, Indonesia. His career includes Secretary of Economics and Development Studies, Faculty of Economy and Management, Bogor Agricultural University, Indonesia. He earned Master of Economics degree in Agricultural Economics and Business Management, and Doctoral degree from University of New England Armidale Australia, 1999. He has served as a member of editor of TROBOS Magazine. He is also a lecturer at Doctoral Program in Bogor Agricultural University, and becomes public speaker for topics include competitiveness, productivity, agribusiness economy, and regional economy.
    Author contact’s details: Graduate School of Management and Business, Bogor Agricultural University, Indonesia; E-mail: sjafmp@yahoo.co.id.

Kirbrandoko Kirbrandoko, Bogor Agricultural University

KIRBRANDOKO is a PhD in Agricultural Industrial Technology, Bogor Agricultural University - IPB, Bogor. He held his Master of Science in Management (MSM) in the field of Strategic Management from Arthur D Little Management Education Institute (MEI-ADL), Cambridge, Massachussetts - USA and completed under graduate degree at the Faculty of Bogor Agricultural Mechanization and Agricultural Technology. He had gone through a variety of activities and experiences; as Managing Partner of IMMI Management Training & Consulting, since 1991; lecturer in the Graduate School of Management and Business - Bogor Agricultural University, Bogor Agricultural University for courses in Marketing Management and Strategic Management Agribusiness; lecturer of School of Business and Management ITB (Bandung Institute of Technology). His main research interests include strategic management, marketing and sales management, business communications and people management.
    Author contact’s details: Graduate School of Management and Business, Bogor Agricultural University, Indonesia; E-mail: koko_kir@yahoo.com.

References

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Published
2013-06-12
How to Cite
Pella, M. D. A., Sumarwan, U., Daryanto, A., & Kirbrandoko, K. (2013). Factors Affecting Poor Strategy Implementation. Gadjah Mada International Journal of Business, 15(2), 183-204. Retrieved from https://journal.ugm.ac.id/v3/gamaijb/article/view/15390
Section
Articles