The Influence of Restructuring and Strategic Change on Firm Performance Using Environmental Dynamism as a Mediation Variable

International Journal of Economics and Management Studies

© 2019 by SSRG - IJEMS Journal

Volume 6 Issue 5

Year of Publication : 2019

Authors : Yandi Suprapto, Itjang D. Gunawan, Willy Arafah

10.14445/23939125/IJEMS-V6I5P105

How to Cite?

Yandi Suprapto, Itjang D. Gunawan, Willy Arafah, "The Influence of Restructuring and Strategic Change on Firm Performance Using Environmental Dynamism as a Mediation Variable," SSRG International Journal of Economics and Management Studies, vol. 6,  no. 5, pp. 27-31, 2019. Crossref, https://doi.org/10.14445/23939125/IJEMS-V6I5P105

Abstract:

This paper aims to analyze whether restructuring and strategic change directly influences firm performance and to analyze whether restructuring and strategic change mediated by environmental dynamism have an effect on firm performance. The total sample of 45 people representing the company with criteria has the position of Manager, Director or President Director who has worked in the company for at least 5 years in LQ 45 companies. Analysis method used for this study used PLS SEM with Smart PLS Application. The results showed that restructuring, strategic change and environmental dynamism individually had a significantly positive effect on firm performance. Then restructuring and strategic change individually had a significant positive effect on environmental dynamism. For the relationship indirectly, the restructuring and strategic change variables significantly and perfectly
affect firm performance through environmental dynamism.

Keywords:

restructuring, strategic change, firm performance, environmental dynamism.

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