The Building of Country Manager's Competence and Its Use to Orchestra Subsidiary's Resources: Empirical Study of Indonesian Subsidiaries in Nigeria

  • So Yohanes Jimmy University of Indonesia
  • Firmanzah Firmanzah University of Indonesia
  • Tengku Ezni Balqiah University of Indonesia
  • Albert Widjaja University of Indonesia
Keywords: absorptive capacity, capability development, country manager competence, headquarter resource, resource orchestration

Abstract

This study employs resource orchestration model to investigate the influence of country manager’s competence on subsidiary performance in host country. Structural equation model with multisteps approach is operated using Lisrel to analyze 41 data from Indonesian business unit operating in Nigeria. This study found that country managers uses subsidiary absorptive capacity, which is formed by the combination of headquarter and local partner resources, as the dominant source of learning to develop their competence overtime. This competence does not directly influence subsidiary performance, but it is notably used to accumulate the critical assets for their subordinate business units. These assets then become valuable inputs for business units to develop or modify their operational capabilities, which directly influence the performance. One contribution of this study is providing more detail explanation of how headquarter resources invested abroad are transformed into subsidiary performance.

Author Biographies

So Yohanes Jimmy, University of Indonesia

Jimmy, So Yohanes, is a lecturer in Prasetiya Mulya University. He earned his bachelor degree in Electrical Engineering from Satya Wacana Christian University, his magister management degree in Strategic Management from Prasetiya Mulya University, and his doctoral degree in Strategic Management from University of Indonesia. His research interests in international business, competitive strategy, and entrepreneurship, notably in relation with resource- and knowledge-based theory.

Author’s contact detail: Jl. Karya Bakti, Kavling DPRD DKI Cibubur Blok E No. 7-8, Ciracas, Jakarta Timur 13720; Phone  : +62-815 855 855 66; Email   : yoh.jimmy@gmail.com

Firmanzah Firmanzah, University of Indonesia

Firmanzah is a rector of Paramadina University and Professor from University of Indonesia. He earned his dual degrees program (MM and MBA) from University of Indonesia and University of Pierre Mendes-Grenoble France. His doctoral degree in Strategic and International Management from University of Pau et Pays de l'Adour France. His research interests in innovation, strategic decision making, international business, and new product launching.

Author’s contact detail: Taman Parahyangan Golf, Jl. Situ Indah Golf No. 12 Sentul Selatan, Jawa Barat; Phone  : +62-821 1109 6305; Email : fizfirmanzah@gmail.com

Tengku Ezni Balqiah, University of Indonesia

Balqiah, Tengku Ezni (Scopus Author ID: 35263575200), is senior lecturer in Faculty Economics and Business, University of Indonesia. She earned her bachelor degree in Industrial Engineering from Bandung Institute of Technology, her magister of economics and magister of law from University of Indonesia, and her doctoral degree in Marketing from University of Indonesia. Her research interests in poverty and corporate social responsibility, small medium enterprise and entrepreneurship, Islamic banking, and consumer behavior. She has some publications in Journal of Targeting, Measurement and Analysis for Marketing, Journal of Islamic Marketing, European Research Studies Journal, International Journal of Economics and Management, Pertanika Journal of Social Sciences and Humanities.

 Author’s contact detail: Department Management Building, 2nd floor, Faculty of Economics and Business, University of Indonesia, Depok 16424; Phone : +62-812 9404906; Email address: tengku.ezni@ui.ac.id ; tebalqiah@yahoo.com

Albert Widjaja, University of Indonesia

Widjaja, Albert is a lecturer in Faculty of Economics & Business, University of Indonesia, and in Police Higher Education, Jakarta. He earned his bachelor degree in Mathematics from Goshen College, Indiana USA, his master of business administration degree in International Business from University of Cincinati, Ohio USA, and his doctoral degree in Political Economy from Claremont Graduate University, Claremont, California USA. His research interests in strategic management, international marketing, and information technology. He has published  ”Indonesia Finding Ways to Take Off”, At George Yip (Editor): Asian Advantage: Winning Strategy in Asia, Addison Wesley, New York, 2000 (joint authorship with George Yip).

 Author’s contact detail: 1200 Carlos Drive #503, Raleigh, North Carolina, USA; Phone  : +1-919-601-3696; E-mail: aljaya8@gmail.com

References

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Published
2019-04-22
How to Cite
Jimmy, S. Y., Firmanzah, F., Balqiah, T. E., & Widjaja, A. (2019). The Building of Country Manager’s Competence and Its Use to Orchestra Subsidiary’s Resources: Empirical Study of Indonesian Subsidiaries in Nigeria. Gadjah Mada International Journal of Business, 21(1), 37-68. Retrieved from https://journal.ugm.ac.id/v3/gamaijb/article/view/15686
Issue
Vol 21 No 1 (2019): January-April
Section
Articles

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