Open Access
American Research Journal of Business and Management
ISSN (Online): 2379-1047
DOI: 10.46568/arjbm
The strategic role of Board of Commissioners in Resource-Based View approach and Agency Theory perspectives to attain sustainable competitive advantage in the Indonesian Banking Industry
Andre M. Hartawan, Yuswar Z. Basri, Willy Arafah, ”The strategic role of Board of Commissioners in Resource-Based
View approach and Agency Theory perspectives to attain sustainable competitive advantagein the Indonesian Banking
Industry.” American Research Journal of Business and Management, vol 6, no. 1, 2020, pp. 1-14.
Abstract
As Board of Commissioner (BoC) is one of the most important internal corporate governance mechanisms used by the shareholders to monitor
management, this study endeavors to develop and test a conceptual model to enable the BoC to function as the Bank’s strategic resources,
addressing agency dynamics in agency theory perspective which eventually will lead to sustainable competitive advantage in the Indonesian
Banking Industry.
The study focuses on the perceived knowledge of the Indonesian Bank’s current BoC members where data were collected through questionnaire
with Structural Equation Modeling (SEM) analysis. The sampling technique is purposive sampling method collected from 97 Commissioners in
Indonesian Banks within category 1 to 3.
The research reveals following findings: (i) The effect of Board Member Attributes on BoC performance in Resource-Based View (RBV) is positive
and significant (ii) The effect of Board Attributes on BoC performance in RBV is positive and significant (iii) The effect of Information Access and
Disclosure on BoC performance in RBV is positive and significant (iv) The effect of Information Access and Disclosure on Sustainable Competitive
Advantage is positive and significant (v) The effect of BoC in RBV on Sustainable Competitive Advantage is positive and significant (vi) The effect
of BoC in RBV on Agency Dynamics is positive and significant (vii) The effect of the Agency Dynamics on Sustainable Competitive Advantage
is insignificant and negative (viii) The mediating effect of BoC in RBV can increase the effect of Information Access and Disclosure on Agency
Dynamics mitigation (ix) The mediating effect of BoC in RBV can increase the effect of Information Access and Disclosure on Sustainable
Competitive Advantage (x) The mediating effect of BoC in RBV can increase the effect of Board Member Attributes on Sustainable Competitive
Advantage (xi) The mediating effect of BoC in RBV can increase the effect of Board Attributes on Sustainable Competitive Advantage.
Based on empirical findings obtained in this research, the managerial implications of this research can be used as input for Indonesian Bank’s
relevant stakeholders to improve the quality of Board Member Attributes, Board Attributes, Information Access and Disclosure, in optimizing
strategic role BoC in RBV, in mitigating Agency Dynamics towards achieving the Bank’s Sustainable Competitive Advantage.
