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Analysis Study Research Paper | Management | Indonesia | Volume 12 Issue 3, March 2023 | Popularity: 5 / 10

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Pestle Analysis: A Study of the Banking Industry in Indonesia

Syamsul Ridjal, Akhmad Muhammadin

Abstract: The banking industry including in Indonesia, experiences the challenge of dynamic changes in the external environment especially due to the influence of globalization and domestic such as national and international economic performance. The purpose of this research is to find out what the external environment and generic strategies influence on organizational performance. Survey to 101 banks through a set of questionnaires sent and collected directly by the researcher from the main director and bank director in Indonesia. Data were collected and analyzed using descriptive analysis and linear structuring relationships (LISREL). The results of the study show that there are eight paths that affect each variable. That is first politics, economy, social, technology, legal and environment have a positive and significant effect on generic strategy. Second, generic strategy has a positive and significant effect on organization performance. The three politic, economy, social, technology, legal and environment factors have a positive and significant effect on organization performance. Therefore, banks should always develop generic strategy in order to improve organization performance as well as always be sensitive to the influence of the external environment so it is important for decision makers to develop strategies to enhance competitive advantage.

Keywords: PESTLE Analysis, Generic Strategy, Organization Performance, Banking

Edition: Volume 12 Issue 3, March 2023

Pages: 1406 - 1414

DOI: https://www.doi.org/10.21275/SR23322105445

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