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Bambang Riyanto
Sekolah Teknik Elektro dan Informatika, Institut Teknologi Bandung Jalan Ganesha 10, Bandung 40132, Indonesia
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Journal : Journal of Indonesian Economy and Business

 1 
STRATEGY IMPLEMENTATION: THE EFECT OF DECENTRALIZATION, PARTICIPATION IN BUDGET SETTING, AND MANAGERS’ ATTITUDE ON PERFORMANCE Riyanto, Bambang
Journal of Indonesian Economy and Business Vol 25, No 3 (2010): September
Publisher : Journal of Indonesian Economy and Business

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Abstract

The performance of a business unit, to a large extent, is determined by the quality of its strategy and how well the strategy is implemented. This study examines the effect ofstrategy implementation on performance. In particular, it investigates the extent to which the fit between two crucial strategic supporting systems, namely decentralization andbudget system, and managers’ attitude with the strategy of SBU on performance. It is argued that the more consistent the level of decentralization, degree of participation in thebudget system and managers’ attitude with the SBU strategies, the higher the performance will be, and vice versa. Unlike most prior studies, the hypothesis was tested by adopting the system of fit approach. Responses from 75 divisional managers of 75 diversified companies are analyzed. The results show that managers pursuing a strategy of differentiation (cost leadership) report high performance when they worked in highly (less) decentralized structures, are given more (less) opportunity to participate in the budget process, and had strongly positive attitude toward their jobs and their firms. These findings are consistent with the basic premise of strategy implementation that different strategies should be supported with different configuration of organizational structure and process to achieve optimal results.Keywords: strategy implementation, decentralization, participation, attitude, system of fit.
Co-Authors -, Nurseha A.A. Ketut Agung Cahyawan W Agung Budiwirawan Agus Taufik Mulyono Ahmad Harisb januar Syahidan, Ahmad Harisb januar Al-Faruqi, Muhammad Umar Alfa Narendra Alfila, Sinta Amelia Kusuma Indriastuti Ani Setiarini Arafah, Purnama Ariska, Risti Arivai Santosae, Zacky Astri Purnama Dewi Azhar Hermawan Riyanto, Azhar Hermawan Bagus Hario Setiadji Bambang Haryadi Bambang Pudjianto Bambang Susantono Cahyuning Isnaini, Cahyuning Dalimunthe, Zahirada Danang Parikesit Dardanila, Dardanila Darmawijoyo, Darmawijoyo Dendy Wicaksono Dianita Ratna Kusumastuti Dinamella Wahjuningrum Doni Ramadhan, Doni Dwi Widayati, Dwi Elisati Hulu Fauziah, Silva Ferry Hermawan Fitria, Hadaya Gugup Kismono Hidayati, Aulia Hinggo S, Hichmaed Tachta Indah, Febriamitha Indrasurya Budisatrya Mochtar Ismiyati Ismiyati Jogiyanto Hartono Joko Santoso Joko Siswanto Juang Akbardin Kami Hari Basuki Kami Hari Basuki Kustiariyah Tarman Lutfi, Agus Marsella, Emma Masrianto Masrianto Mudjiastuti Handajani Muhammad Amin Cakrawijaya Mustafid Mustafid Mustika Mahamarendra Mutik Sirait, Raisyicha Naibaho, Margareta Desnawati Nanda Dwi Astri Novita, Winda Duwi Nur Listiawati, Nur Nurhayati Harahap Nuroji Nuroji Poernomosidhi Poerwo Pratiwi, Ghina Eka Prestika Fiprilia Medawati Rakhmatika, Rakhmatika Ramadan Ramadan Ratu Ilma Indra Putri Reza Maulana Ria Asih Ariyani Soemitro Risti Ariska Ritonga, Parlaungan Rizky Akbar Fathurochman Rusdy A. Siroj S, Marsel Saulina Santosae, Zacky Arivai Simon Sili Sabon, Simon Sili Sinulingga, Fahri Sipayung, Klariani Sriningsih Sirait, Raisyicha Mutik Siswantari Sodikin Sodikin Soegiono Soetomo Sri Widyantoro, Sri Subijanto Sugeng Heri Suseno Syafrudin Syafrudin Syahfitri, Utami Dyah TATI NURHAYATI Tiftazani, M. Haekal Trilaksini, Wini Wahyu Ramadhan Wardhana A.S, Wisnu Wibowo, Slamet Widiarsyah, Farel Wini - Trilaksani Wirda, Yendri Wulandari, Ayu Septi Y I Wicaksono YI. Wicaksono Zulkardi Zulkardi Zulkardi