THE ROLE OF PRO INNOVATION OPPORTUNITY EXPLOITABILITY AS MEDIATING DYNAMIC CAPABILITIES AND COMPANY PERFORMANCE
Abstract
The phenomenon of a decrease in the percentage of palm oil export performance from its overall production from 2017 to 2019 from 77% to 72% is an important highlight in this study. In addition, the role of palm oil export performance in the trade balance of the non-oil and gas sector decreased from 2017 to 2019 from 13.3% (20,341 million USD) in 2017 to 10% (15,574 million USD) in 2019. Furthermore, export performance to countries the main destinations (India, Pakistan, Netherlands, USA etc.) showed a decline from 2017-2019, namely from 20,341 Million USD in 2017 to 15,574 Million USD in 2019 or decreased by about -23%. This study aims to explain how the existing dynamic capabilities become an opportunity to improve the company's performance through the mediating variable, namely Pro Innovation Opportunity Exploitability. The population used in this study is the entire palm oil industry that produces CPO (Crude Palm Oil) products and its derivatives in Indonesia which are registered in related associations and data from the Palm Oil Plantation Fund Management Agency (BPDPKS) of the Ministry of Finance of the Republic of Indonesia and obtained a research sample of 168. The statistical test tool used in this research is WarpPLS 7.0. The results show that Dynamic Capabilities affect the company's performance, then Dynamic Capabilities affect Pro-Innovation Opportunity Exploitability, and Pro-Innovation Opportunity Exploitability affects the Company's performance. This study also proved that Pro-Innovation Opportunity Exploitability mediates Dynamic Capabilities on Company Performance.
Keyword : Company Performance, Pro Innovation Opportunity Exploitability, Dynamic Capability
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References
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