IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i11p6431-d823187.html
   My bibliography  Save this article

Operational Resilience as a Key Determinant of Corporate Sustainable Longevity in the Indonesian Jamu Industry

Author

Listed:
  • Dadang Irawan

    (Doctor of Research in Management, Doctorate Program, BINUS Business School, Bina Nusantara University, Jakarta 11480, Indonesia)

  • Harjanto Prabowo

    (Doctor of Research in Management, Doctorate Program, BINUS Business School, Bina Nusantara University, Jakarta 11480, Indonesia)

  • Engkos Achmad Kuncoro

    (Doctor of Research in Management, Doctorate Program, BINUS Business School, Bina Nusantara University, Jakarta 11480, Indonesia)

  • Nurianna Thoha

    (International Business Program, Management Department, BINUS Business School International Undergraduate Program, Bina Nusantara University, Jakarta 11480, Indonesia)

Abstract

The jamu (Indonesian traditional herbal drink) industry has grown in popularity because of people’s increased interest in the qualities of herbal remedies for bodily immunity. The COVID-19 pandemic has affected not only the market but also how businesses have managed their supply chains and production. COVID-19 has been claimed to be a test of a company’s long-term viability. Sustainability refers to a company’s ability to last a long time (corporate longevity). The tug of war between economic prosperity, environmental quality, and social justice that guarantees enterprises are profitable and sustainable is the main issue for companies in developing governance. From a theoretical standpoint, longevity is an intriguing problem. There are two types of corporate longevity: corporate longevity (CL) and corporate sustainable longevity (CSL). Little research has specifically examined the internal aspects of CSL. It necessitates several specific characteristics that all play a role in CSL. This research intends to highlight operational resilience as a crucial predictor of CSL’s significance in the jamu business. Companies that have consistently produced and benefitted from their business operations, before, during, and after the pandemic, have faced challenges of sustainability or longevity. Predecessor independent variables, and moderating or mediating variables, can be used to enable the operational resilience stance. To achieve CSL, the company must know how much it will determine its position in numerous ways in company practice. This study contributes to exploring dimensions and indicators of operational resilience to determine CSL in its relevance to the jamu industry. Different roles for operational resilience in different industry practices are also feasible.

Suggested Citation

  • Dadang Irawan & Harjanto Prabowo & Engkos Achmad Kuncoro & Nurianna Thoha, 2022. "Operational Resilience as a Key Determinant of Corporate Sustainable Longevity in the Indonesian Jamu Industry," Sustainability, MDPI, vol. 14(11), pages 1-11, May.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:11:p:6431-:d:823187
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/11/6431/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/11/6431/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Se-Yeon Ahn, 2018. "Founder Succession, The Imprint of Founders’ Legacies, and Long-Term Corporate Survival," Sustainability, MDPI, vol. 10(5), pages 1-15, May.
    2. Robert Cressy, 2006. "Why do Most Firms Die Young?," Small Business Economics, Springer, vol. 26(2), pages 103-116, March.
    3. David Audretsch & Patrick Houweling & A. Thurik, 2000. "Firm Survival in the Netherlands," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 16(1), pages 1-11, February.
    4. Laura Panza & Simon Ville & David Merrett, 2018. "The drivers of firm longevity: Age, size, profitability and survivorship of Australian corporations, 1901–1930," Business History, Taylor & Francis Journals, vol. 60(2), pages 157-177, February.
    5. Evans, David S, 1987. "The Relationship between Firm Growth, Size, and Age: Estimates for 100 Manufacturing Industries," Journal of Industrial Economics, Wiley Blackwell, vol. 35(4), pages 567-581, June.
    6. Elena Cefis & Orietta Marsili, 2005. "A matter of life and death: innovation and firm survival," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(6), pages 1167-1192, December.
    7. Fahad Assad Al. Othman & Osama Sohaib, 2016. "Enhancing Innovative Capability and Sustainability of Saudi Firms," Sustainability, MDPI, vol. 8(12), pages 1-16, November.
    8. Ortiz-Villajos, José M. & Sotoca, Sonia, 2018. "Innovation and business survival: A long-term approach," Research Policy, Elsevier, vol. 47(8), pages 1418-1436.
    9. Wojan, Timothy R. & Crown, Daniel & Rupasingha, Anil, 2018. "Varieties of innovation and business survival: Does pursuit of incremental or far-ranging innovation make manufacturing establishments more resilient?," Research Policy, Elsevier, vol. 47(9), pages 1801-1810.
    10. Frost, Chris & Allen, David & Porter, James & Bloodworth, Philip, 2000. "Operational Risk and Resilience," Elsevier Monographs, Elsevier, edition 1, number 9780750643955.
    11. Lai, Wen-Hsiang & Lin, Chiu-Ching & Wang, Ting-Chu, 2015. "Exploring the interoperability of innovation capability and corporate sustainability," Journal of Business Research, Elsevier, vol. 68(4), pages 867-871.
    12. Maria Rosaria Napolitano & Vittoria Marino & Jari Ojala, 2015. "In search of an integrated framework of business longevity," Business History, Taylor & Francis Journals, vol. 57(7), pages 955-969, October.
    13. Silviano Esteve-Pérez & Juan Mañez-Castillejo, 2008. "The Resource-Based Theory of the Firm and Firm Survival," Small Business Economics, Springer, vol. 30(3), pages 231-249, March.
    14. Gunasekaran, Angappa & Ngai, Eric W.T., 2012. "The future of operations management: An outlook and analysis," International Journal of Production Economics, Elsevier, vol. 135(2), pages 687-701.
    15. Teixeira, Eduardo de Oliveira & Werther, William B., 2013. "Resilience: Continuous renewal of competitive advantages," Business Horizons, Elsevier, vol. 56(3), pages 333-342.
    16. Cirera, Xavier & Marin, Anabel & Markwald, Ricardo, 2015. "Explaining export diversification through firm innovation decisions: The case of Brazil," Research Policy, Elsevier, vol. 44(10), pages 1962-1973.
    17. Chin-Hung Tseng & Kuo-Hsiung Chang & Ho-Wen Chen, 2019. "Strategic Orientation, Environmental Innovation Capability, and Environmental Sustainability Performance: The Case of Taiwanese Suppliers," Sustainability, MDPI, vol. 11(4), pages 1-19, February.
    18. Guktae Kim & Moon-Goo Huh, 2015. "Exploration and organizational longevity: The moderating role of strategy and environment," Asia Pacific Journal of Management, Springer, vol. 32(2), pages 389-414, June.
    19. Min Xu & Jeanne M. David & Suk Hi Kim, 2018. "The Fourth Industrial Revolution: Opportunities and Challenges," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 9(2), pages 90-95, April.
    20. Giorgos Meramveliotakis & Manolis Manioudis, 2021. "History, Knowledge, and Sustainable Economic Development: The Contribution of John Stuart Mill’s Grand Stage Theory," Sustainability, MDPI, vol. 13(3), pages 1-16, January.
    21. Hugo van Driel & Henk W. Volberda & Sjoerd Eikelboom & Eline Kamerbeek, 2015. "A co-evolutionary analysis of longevity: Pakhoed and its predecessors," Business History, Taylor & Francis Journals, vol. 57(8), pages 1277-1305, November.
    22. Geroski, P. A., 1995. "What do we know about entry?," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 421-440, December.
    23. Shabir Ahmad & Rosmini Omar & Farzana Quoquab, 2019. "Corporate Sustainable Longevity: Scale Development and Validation," SAGE Open, , vol. 9(1), pages 21582440188, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shabir Ahmad & Rosmini Omar & Farzana Quoquab, 2019. "Corporate Sustainable Longevity: Scale Development and Validation," SAGE Open, , vol. 9(1), pages 21582440188, January.
    2. Ugur, Mehmet & Trushin, Eshref & Solomon, Edna, 2016. "Inverted-U relationship between R&D intensity and survival: Evidence on scale and complementarity effects in UK data," Research Policy, Elsevier, vol. 45(7), pages 1474-1492.
    3. Guidi, Francesco & Solomon, Edna & Trushin, Eshref & Ugur, Mehmet, 2015. "Inverted-U relationship between innovation and survival: Evidence from firm-level UK data," EconStor Preprints 110896, ZBW - Leibniz Information Centre for Economics.
    4. Christos Genakos & Ioannis Kaplanis & Maria Theano Tagaraki & Aggelos Tsakanikas, 2023. "Firm Resilience and Growth during the Economics Crisis: lessons from the Greek depression," GreeSE – Hellenic Observatory Papers on Greece and Southeast Europe 186, Hellenic Observatory, LSE.
    5. Cefis, Elena & Bartoloni, Eleonora & Bonati, Marco, 2020. "Show me how to live: Firms' financial conditions and innovation during the crisis," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 63-81.
    6. Masatoshi Kato & Koichiro Onishi & Yuji Honjo, 2022. "Does patenting always help new firm survival? Understanding heterogeneity among exit routes," Small Business Economics, Springer, vol. 59(2), pages 449-475, August.
    7. Ugur, Mehment & Vivarelli, Marco, 2020. "The role of innovation in industrial dynamics and productivity growth: a survey of the literature," GLO Discussion Paper Series 648, Global Labor Organization (GLO).
    8. Chun Yang & Bart Bossink & Peter Peverelli, 2017. "High-tech start-up firm survival originating from a combined use of internal resources," Small Business Economics, Springer, vol. 49(4), pages 799-824, December.
    9. Kim, Jungho & Lee, Chang-Yang, 2016. "Technological regimes and firm survival," Research Policy, Elsevier, vol. 45(1), pages 232-243.
    10. Bj�rn Eriksson & Maria Stanfors, 2015. "A winning strategy? The employment of women and firm longevity during industrialisation," Business History, Taylor & Francis Journals, vol. 57(7), pages 988-1004, October.
    11. Marco Vivarelli, 2013. "Is entrepreneurship necessarily good? Microeconomic evidence from developed and developing countries," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(6), pages 1453-1495, December.
    12. Enrico Santarelli & Marco Vivarelli, 2007. "Entrepreneurship and the process of firms’ entry, survival and growth," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(3), pages 455-488, June.
    13. Mehmet Ugur & Marco Vivarelli, 2021. "Innovation, firm survival and productivity: the state of the art," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 30(5), pages 433-467, July.
    14. Christos, Genakos & Kaplanis, Ioannis & Tagaraki, Maria Theano & Tsakanikas, Aggelos, 2023. "Firm resilience and growth during the economics crisis: lessons from the Greek depression," LSE Research Online Documents on Economics 119705, London School of Economics and Political Science, LSE Library.
    15. Marco Vivarelli, 2012. "Entrepreneurship and Post-Entry Performance: the Microeconomic Evidence," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1286, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    16. Vivarelli, Marco, 2012. "Drivers of entrepreneurship and post-entry performance : microeconomic evidence from advanced and developing countries," Policy Research Working Paper Series 6245, The World Bank.
    17. Vivarelli, Marco, 2012. "Entrepreneurship in Advanced and Developing Countries: A Microeconomic Perspective," IZA Discussion Papers 6513, Institute of Labor Economics (IZA).
    18. Mehmet Ugur & Marco Vivarelli, 2020. "Technology, industrial dynamics and productivity: a critical survey," DISCE - Quaderni del Dipartimento di Politica Economica dipe0011, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    19. Silviano Esteve Pérez & Fabio Pieri & Diego Rodriguez, 2015. "Age and productivity as determinants of firm survival over the product life cycle," Working Papers 1502, Department of Applied Economics II, Universidad de Valencia.
    20. Agustí Segarra & Maria Callejón, 2002. "New Firms' Survival and Market Turbulence: New Evidence from Spain," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 20(1), pages 1-14, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:11:p:6431-:d:823187. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.