Open Access

American Research Journal of Business and Management

ISSN (Online): 2379-1047

DOI: 10.46568/arjbm

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Research Article Vol. 6, Issue 1 2020 Open Access

THE EFFECT OF CORPORATE ENTREPRENEURSHIP, ORGANIZATIONAL CULTURE THROUGH INNOVATION OF FIRM PERFORMANCE IN THE STRATEGIC INDUSTRY OF STATE DEFENSE

Donny Bayu Sukarno, Haryono Umar, Haeba Ramli

Abstract

The Defense Industry shows a decrease so that some products are no longer produced due to the absence of orders. This condition questions the systems and business strategies used by the Defense Industry in facing global competition against the production of state defense equipment. BUMN Defense Industry as a state-owned strategic BUMN that is expected to be a beacon of the Indonesian military equipment industry and able to meet the needs of the country’s defense and security equipment so that Indonesia does not depend on foreign defense products. Innovation, Firm Performance is a strategic and integrated approach to deliver positive results in organizations by improving performance and developing the ability of teams and individuals. Managing people in an organizational context means managing people in order to produce optimal performance for the organization, so it becomes a concept of firm performance, organizational structure. The method of analysis is done through explanatory research, with PLS / SEM applications. The concepts and problems studied see the causality relationship, then explain the variables that cause the problem under study. The research sample of 92 State Defense Strategic Industry BUMNs. Corporate Entrepreneurship is always used by companies that have been operating long enough and in large companies. This entrepreneurship is generally used for the purpose of seeing the company’s profits. The results of this study Corporate Entrepreneurship have a positive effect on firm performance and are able to improve Innovation Managerial implications in this study are to provide information for relevant agencies to be able to maintain organizational culture by being positive in supporting the development of the Strategic BUMN of the State Defense Industry.