Back to Basics in the Importance of Market Orientation and Corporate Strategy to Bank Performances in Indonesia

Abstract

This study was to see market orientation and corporate strategy to Bank performance, specifically product sales development, financial performance growth and market share growth in Indonesia. Unit analysis surveyed was a twelve (12) public listed commercial bank with the flexibility in the product offered and geographic coverage belongs to the group of BUKU III and BUKU IV under the Bank Indonesia classification. This study used the statistical reliable and valid Instrumentation. Given little samples, as they tell to a corporate strategy which is only formulated by the bank's headquarters, the results of studies were processed using partial least square's methods. Observations show that the dimensions of customer orientation dominate the preference on the bank's corporate strategy, followed by internal coordination and the least being a competitor orientation. The market orientation variables (±85.5%) influenced the strategy. Further observations also show that the approach (84.4%) explained the bank performance%) whereas other factors (26.6%) reflect other models.