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Examining Leadership Capabilities, Risk Management Practices, and Organizational Resilience: The Case of State-Owned Enterprises in Indonesia

Author

Listed:
  • Purwatiningsih Lisdiono

    (Faculty of Economics and Business, Universitas Indonesia, Campus UI, Depok City 16424, Indonesia)

  • Jamaliah Said

    (Accounting Research Institute, Universiti Teknologi MARA, Shah Alam 40450, Malaysia)

  • Haslinda Yusoff

    (Faculty of Accountancy, Universiti Teknologi MARA, Selangor Branch, Puncak Alam Campus, Bandar Puncak Alam 42300, Malaysia)

  • Ancella Anitawati Hermawan

    (Faculty of Economics and Business, Universitas Indonesia, Campus UI, Depok City 16424, Indonesia)

Abstract

This study aims to assess the role of leadership in Indonesia’s State-Owned Enterprises in bringing the companies to be resilient amid uncertainties and a dynamic environment based on dynamic capability theory. Risk management practices are used to mediate the relationship between leadership capabilities and enterprise resilience. The authors conducted a quantitative and cross-sectional study using a questionnaire distributed to members of the board of directors and senior managers of Indonesia SOEs and their subsidiaries. Based on the structural equation modeling analysis, the findings reveal that leadership capabilities play a role in developing enterprise resilience and risk management practice. Additionally, risk management practice partially mediates the relationship between leadership capabilities and enterprise resilience. The empirical findings enrich the knowledge on the relationship between enterprise resilience, leadership capability, and risk management practice. These results enable management SOEs and their subsidiaries and policymakers to develop strategies and a policy framework to create and develop enterprise resilience and help SOEs navigate safely and triumphantly in uncertain and disruptive business environments. This study supports empirical evidence that expands the context of applying the enterprise resilience concept and dynamic capability theory in hybrid organization types, such as SOEs, that operate in emerging countries.

Suggested Citation

  • Purwatiningsih Lisdiono & Jamaliah Said & Haslinda Yusoff & Ancella Anitawati Hermawan, 2022. "Examining Leadership Capabilities, Risk Management Practices, and Organizational Resilience: The Case of State-Owned Enterprises in Indonesia," Sustainability, MDPI, vol. 14(10), pages 1-19, May.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:10:p:6268-:d:820633
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    References listed on IDEAS

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    1. Teixeira, Eduardo de Oliveira & Werther, William B., 2013. "Resilience: Continuous renewal of competitive advantages," Business Horizons, Elsevier, vol. 56(3), pages 333-342.
    2. Annarelli, Alessandro & Nonino, Fabio, 2016. "Strategic and operational management of organizational resilience: Current state of research and future directions," Omega, Elsevier, vol. 62(C), pages 1-18.
    3. Heo,Kyoungsun, 2018. "Effects of corporate governance on the performance of state-owned enterprises," Policy Research Working Paper Series 8555, The World Bank.
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    Cited by:

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