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Regulatory Focus Enhancing Firm Performance through Strategic Change

Author

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  • Supriyanto

    (Universitas Trisakti, Indonesia)

  • Yolanda Masnita Siagian

    (Universitas Trisakti, Indonesia)

  • Wahyuningsih Santosa

    (Universitas Trisakti, Indonesia)

Abstract

This study aims to analyze the effect of regulatory focus on firm performance mediated by strategic change. Novelty in this study provides knowledge on how regulatory focus affects firm performance when mediated by strategic change. This research was tested using Structural Equation Modeling (SEM). The research data use manufacturing companies in the Riau Islands Province in Indonesia. The research results explain that regulatory focus can enhance firm performance through strategic change. This study provides theoretical implications for the development of the upper-echelon theory that regulatory focus theory is a theory in the field of psychology that can support strategic decision-making to survive dynamic conditions. The managerial implications in this study contribute to companies in determining the top management team. Companies can arrange a top management team with a regulatory focus theory approach in dealing with a dynamic environment. In addition, the top management team must implement strategic changes so that the company's performance is achieved.

Suggested Citation

  • Supriyanto & Yolanda Masnita Siagian & Wahyuningsih Santosa, 2023. "Regulatory Focus Enhancing Firm Performance through Strategic Change," European Journal of Business and Management Research, European Open Science, vol. 8(2), pages 314-320, March.
    • Handle: RePEc:epw:ejbmr0:v:8:y:2023:i:2:id:51944
    DOI: 10.24018/ejbmr.2023.8.2.1944
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