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A failure innovation strategy of acquisition during excess capacity: financial approach based on case study at the state-owned cement holding PT Semen Indonesia (Persero) Tbk

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  • Effnu Subiyanto

    (Widya Mandala Surabaya Catholic University (UKWM))

Abstract

This research aims to prove that wide gap between theories and practices in terms of acquisition that should be positive to drive performance of the acquirer but the distinctive things happened in Indonesia was not according to the preliminary design planned. The failure acquisition of Semen Indonesia (SMGR) over Holcim Indonesia (SMCB) in 2018 due to what had been done during excessive capacity should be priority to strengthen interns than acting to intervene outside. This study elaborates a case study, mixed-type research, and presents by explanatory design. It comes to find that acquisition during excess capacity is a failure step taken by PT Semen Indonesia (Persero) Tbk. Many corporate steps are taken to a polish performance of the SMCB-acquiree but so far failing and endangering the whole performance. To compensate and withhold the climb-down due to oversupply, the management engineering of market intervention had been done. Big portions of market’s regions previously belong to SMGR had been handed over to SMCB to help increase its performance. The forced switching to polishing SBI’s performance is hurting all of the holding’s members. SBI enjoys improving market but at the same time endangers the performance of the whole groups of holdings. This research contributes to updating the present development of recent corporate actions of popular merger and acquisition are both previously labeled as the best corporate strategy for decades.

Suggested Citation

  • Effnu Subiyanto, 2020. "A failure innovation strategy of acquisition during excess capacity: financial approach based on case study at the state-owned cement holding PT Semen Indonesia (Persero) Tbk," Journal of Innovation and Entrepreneurship, Springer, vol. 9(1), pages 1-14, December.
    • Handle: RePEc:spr:joiaen:v:9:y:2020:i:1:d:10.1186_s13731-020-00134-4
    DOI: 10.1186/s13731-020-00134-4
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    References listed on IDEAS

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    1. Effnu Subiyanto, 2020. "Violating Labour's Rights, A Failure Understanding Establishment of SOEs Holdings: Evidence at the State-owned Enterprise Cement Holding of PT Semen Indonesia (Persero) Tbk," Technium Social Sciences Journal, Technium Science, vol. 7(1), pages 1-17, May.
    2. Vissak, Tiia & Francioni, Barbara & Freeman, Susan, 2020. "Foreign market entries, exits and re-entries: The role of knowledge, network relationships and decision-making logic," International Business Review, Elsevier, vol. 29(1).
    3. Akinyinka Akinyoade & Chibuike Uche, 2018. "Development built on crony capitalism? The case of Dangote Cement," Business History, Taylor & Francis Journals, vol. 60(6), pages 833-858, August.
    4. Effnu Subiyanto, 2020. "The Relationship of Cement Consumption and Economic Growth: An Updated Approach," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 280-295.
    5. Chatzipanagiotou, Kalliopi & Christodoulides, George & Veloutsou, Cleopatra, 2019. "Managing the consumer-based brand equity process: A cross-cultural perspective," International Business Review, Elsevier, vol. 28(2), pages 328-343.
    6. Triebs, Thomas P. & Pollitt, Michael G., 2019. "Objectives and incentives: Evidence from the privatization of Great Britain’s power plants," International Journal of Industrial Organization, Elsevier, vol. 65(C), pages 1-29.
    7. Cao, Lanlan & Navare, Jyoti & Jin, Zhongqi, 2018. "Business model innovation: How the international retailers rebuild their core business logic in a new host country," International Business Review, Elsevier, vol. 27(3), pages 543-562.
    8. Marshall, Guillermo & Parra, Álvaro, 2019. "Innovation and competition: The role of the product market," International Journal of Industrial Organization, Elsevier, vol. 65(C), pages 221-247.
    9. Effnu Subiyanto, 2020. "Assessing Total Logistics Costs: Case Study During the Execution of Cement Projects in Indonesia," International Journal of Applied Logistics (IJAL), IGI Global, vol. 10(2), pages 45-61, July.
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    Cited by:

    1. Diah Hari Suryaningrum & Abdul Aziz Abdul Rahman & Abdelrhman Meero & Pandu Adi Cakranegara, 2023. "Mergers and acquisitions: does performance depend on managerial ability?," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-23, December.

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