Indonesian Firms in Facing Globalization: Do Foreign Ownership and Export Matter?

Suyanto, Suyanto and Sugiarti , Yenny (2020) Indonesian Firms in Facing Globalization: Do Foreign Ownership and Export Matter? In: Proceedings of the 17 th International Symposium on Management (INSYMA 2020), February 19-21, 2020, Ba Ria Vung Tau University.

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Abstract

The Indonesian firms need to prepare and be ready for the globalization and industrial revolution 4.0. The inward-looking strategy is no longer sufficient to face the world competition, rather the outward-looking strategy provides a significant benefit for the firms to survive and compete. In response to this globalization issue, the current study evaluates the outward looking strategy through examining three important external factors, besides inward looking factors, that contribute to Indonesian firms’ productivity. The outward-looking factors are foreign ownership, export, and import, whereas the inward-looking factors are material, labour, capital, and energy. Applying the augmented Cobb-Douglas production function on 8,589 manufacturing firms within seven years period, the findings of this current study show the importance of for-eign ownership, export, and import in significantly influence the productivity of the Indonesian firms. The re-sults are robust under four methods of analyses, namely Ordinary Least Squared (OLS), Generalized Least Squared (GLS), Maximum Likelihood (ML), and General Method of Moments(GMM). The findings suggest for the outward-looking strategy for Indonesian firms to increase their productivity.

Item Type:	Conference or Workshop Item (Speech)
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HC Economic History and Conditions
Divisions:	Faculty of Business and Economic > Department of Economic
Depositing User:	Suyanto 3198
Date Deposited:	24 Feb 2020 05:15
Last Modified:	09 Mar 2020 08:43
URI:	http://repository.ubaya.ac.id/id/eprint/37432

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