The Role of Strategic Planning and Innovation in Achieving Performance of Public Organization in Indonesia

International Journal of Economics and Management Studies

© 2019 by SSRG - IJEMS Journal

Volume 6 Issue 10

Year of Publication : 2019

Authors : Suyono Saputra, Professor Dadan Umar Daihani, Dr. Agustinus Sri Wahyudi

10.14445/23939125/IJEMS-V6I10P113

How to Cite?

Suyono Saputra, Professor Dadan Umar Daihani, Dr. Agustinus Sri Wahyudi, "The Role of Strategic Planning and Innovation in Achieving Performance of Public Organization in Indonesia," SSRG International Journal of Economics and Management Studies, vol. 6,  no. 10, pp. 98-102, 2019. Crossref, https://doi.org/10.14445/23939125/IJEMS-V6I10P113

Abstract:

This study is conducted to investigate the role of strategic planning and innovation in achieving performance of Free Trade Zone Development Agency in Indonesia including the role of innovation as mediation in supporting the relationship of independent variables and dependent variables. The model proposed was tested using SmartPLS version 3.0 for data processing. Data was collected from questionnaires filled by 109 sample who were registered as executives/head of department of the Free Trade Zone Development Agency in Indonesia The four hypotheses tested in this study concluded that the construct of strategic planning has negative effect and not significant to the performance, but indirectly has a significant effect on performance if through innovation as mediation. Innovation also proved have strong influence on achieving organizational performance. This study shows the Agency may achieve great performance if they can practically set up strategic planning and optimizing innovation ability within organization.

Keywords:

strategic planning, innovation, organization performance.

References:

[1] L. Höglund, M. H. Caicedo, M. Mårtensson, and F. Svardsten, “Strategic Management in the Public Sector : How Tools Enable and Constrain Strategy Making,” Int. Public Manag. J., vol. 21, no. 5, pp. 822–849, 2018.
[2] J. Weiss, “Trust as a key for strategic management ? The relevance of council – administration relations for NPM-related reforms in German local governments reforms in German local governments,” Public Manag. Rev., vol. 00, no. 00, pp. 1–16, 2017.
[3] A. Johnsen, “Strategic Planning and Management in Local Government in Norway : Status after Three Decades,” Scand. Polit. Study, vol. 00, 2016.
[4] S. Elbanna, R. Andrews, and R. Pollanen, “Strategic Planning and Implementation Success in Public Service Organizations : Evidence from Canada,” Public Manag. Rev., no. July, pp. 1–28, 2015.
[5] J. R. Hansen and E. Ferlie, “Applying Strategic Management Theories in Public Sector Organizations : Developing a Typology,” no. October, pp. 37–41, 2014.
[6] J. M. Bryson, “Th e Future of Public and Nonprofi t Strategic Planning in the United States,” pp. 255–267, 2010.
[7] G. Johnson, K. Scholes, and R. Whittington, Exploring Corporate Strategy. Prentice Hall, 1998.
[8] H. Mintzberg, An Excerpt From Managing. Berret-Koehler Publisher, 2009.
[9] D. Z. Zeng, “Global Experiences with Special Economic Zones  With a Focus on China and Africa,” no. February, pp. 1–17, 2015.
[10] I. Barati-stec, “Strategic Planning in Hungarian Municipalities,” Transylvanian Rev. Adm. Sci., pp. 5–14, 2015.
[11] C. S. Jung and G. Lee, “Goals, Strategic Planning, and Performance in Government Agencies,” Public Manag. Rev., vol. 15, no. 6, pp. 787–815, 2013. [12] A. Ramli, M. Zen, M. Mustafa, and R. Z. Yusoff, “Strategic planning and organizational performance in the Public Sector: A study of local government in Aceh, Indonesia,” Soc. Sci., vol. 12, no. 6, pp. 902–906, 2017.
[13] J. D. Preciado, “Strategic Planning in the public sector,” California State University, 2015.
[14] T. H. Poister, “The Future of Strategic Planning in the Public Sector : Linking Strategic Management and Performance,” Public Adm. Rev., vol. 70, no. S1, pp. S246–S254, 2010.
[15] R. Hendrick, “Strategic Planning Environment , Process , and Performance in Public Agencies : A Comparative Study of Departments in,” vol. 13, no. 4, pp. 491–519, 2003.
[16] O. M. Sophia and D. Owuor, “Effects of Strategic Planning on Organizational Growth .,” Int. J. Sci. Res. Publ., vol. 5, no. 9, pp. 1–15, 2015.
[17] T. H. Poister, D. W. Pitts, and L. H. Edwards, “Strategic Management Research in the Public Sector: A Review, Synthesis, and Future Directions,” Amercian Rev. Public Adm., vol. 40, no. 2, pp. 522–545, 2010.
[18] J. M. Bryson and W. D. Roering, “Applying Private-Sector Strategic Planning in the Public Sector,” J. Am. Plan. Assoc., vol. 53, no. 1, pp. 9–22, 1987.
[19] M. Bryson and D. Roering, “Initiation of Strategic Planning by Governments,” Am. Soc. Public Adm., vol. 48, no. 6, pp. 995–1004, 1988.
[20] M. H. Moore, Creating Public Value_ Strategic Management in Government. Massachusetts: Harvard University Press, 1995.
[21] E. Segev, J. Chen, B. English, and R. C. Johns, “Impacts of Participatory Strategic Planning on Advancing Innovation at the Volpe Center,” Transp. Res. Rec., no. 2420, pp. 45–54, 2014.
[22] A. O. Ovbiagele and I. M. Chinedu, “Strategic Planning As an Effective Tool on Organizational Performance in Nigeria : An Empirical Study of Some Firms in Delta State,” Glob. J. Interdiscip. Soc. Sci., vol. 4, no. 6, pp. 68–72, 2015.
[23] H. Sen, “Strategic planning in the public sector : the case of the Turkish Ministry of Interior,” University of Nottingham, 2016.
[24] D. Z. Zeng, “Building a Competitive City through Innovation and Global Knowledge The Case of Sino-Singapore Suzhou Industrial Park,” no. February, 2016.
[25] S. Choi and J. Choi, “Dynamics of Innovation in Nonprofit Organizations : The Pathways from Innovativeness to Innovation Outcome,” Hum. Serv. Organ. Manag. Leadersh. Gov., vol. 38, no. 4, pp. 360–373, 2014.
[26] T. Choi and S. M. Chandler, “Human Service Organizations Management , Leadership & Governance Exploration , Exploitation , and Public Sector Innovation : An Organizational Learning Perspective for the Public Sector,” no. April 2015, pp. 37–41.
[27] A. T. Karabulut, “Effects of Innovation Types on Performance of Manufacturing Firms in Turkey,” Procedia - Soc. Behav. Sci., vol. 195, pp. 1355–1364, 2015.
[28] A. Koloubandi, H. Mehrmanesh, and Y. N. Keli, “Study The Effect of Strategic Planning and Innovation on Organizational Performance ( Case Study : Tehran Municipality ),” Croizatia, vol. 92, no. 2, pp. 64–72, 2016.
[29] M. Song, S. Im, H. Van Der Bij, and L. Z. Song, “Does Strategic Planning Enhance or Impede Innovation and Firm Performance?,” pp. 503–520, 2011.
[30] B. George, “Does strategic planning „ work ‟ in public organizations ? Insights from Flemish municipalities,” Public Money Manag., vol. 37, no. 7, pp. 527–530, 2017.
[31] C. Dibrell, J. B. Craig, and D. O. Neubaum, “Linking the formal strategic planning process , planning fl exibility , and innovativeness to fi rm performance,” vol. 67, pp. 2007–2009, 2014.
[32] I. Salkic, “Impact of Strategic Planning on Public Organization in Bosnia Herzegovina,” Interdiscip. Descr. Complex Syst., vol. 12, no. 1, pp. 61–77, 2014.
[33] C. Mafini, “Performance Through Innovation , Quality And Inter-Organisational Systems : A Public Sector Perspective,” J. Appl. Bus. Res., vol. 31, no. 3, pp. 939–952, 2015.
[34] J. W. Creswell, Research Design, 4th editio. California: SAGE Publication, 2010.
[35] J. Henseler, G. Hubona, and P. A. Ray, “Using PLS path modeling in new technology research : updated guidelines,” Ind. Manag. Data Syst., vol. 116, no. 1, pp. 2–20, 2016.
[36] R. T. JF Hair, WC Black, BJ Babin, RE Anderson, Multivariate Data Analysis. 2009.
[37] F. Lehner and N. Haas, “Knowledge Management Success Factors – Proposal of an Empirical Research,” Electron. J. Knowl. Manag., vol. 8, no. 1, pp. 79–90, 2010.
[38] F. Khan, Z. Xuehe, F. Atlas, K. U. Khan, A. Pitafi, and M. U. Saleem, “Impact of absorptive capacity and dominant logic on innovation performance of public sector organizations in Hefei (Anhui Province), China,” Manag. Sci. Lett., vol. 7, pp. 275–284, 2017.
[39] H. Gieske, I. Van Meerkerk, and A. Van Buuren, “The Impact of Innovation and Optimization on Public Sector Performance : Testing the Contribution of Connective , Ambidextrous , and Learning Capabilities,” Public Perform. Manag. Rev., vol. 0, no. 0, pp. 1–28, 2018.
[40] B. Buligescu and H. Hollanders, “The impact of public administration and public services innovation on,” no. May 2012, 2018.
[41] B. S. Jimenez, “Strategic Planning and the Fiscal Performance of City Governments during the Great Recession,” Amercian Rev. Public Adm., vol. 43, no. 5, pp. 581–601, 2012.
[42] T. H. Poister, L. H. Edwards, O. Q. Pasha, and J. Edwards, “Strategy Formulation and Performance Evidence from Local Public Transit Agencies,” Public Perform. Manag. Rev., vol. 36, no. 4, p. 2014, 2014.
[43] J. M. Widener, T. J. Gliedt, and P. Hartman, “Visualizing dynamic capabilities as adaptive capacity for municipal water governance,” Sustain. Sci., vol. 12, no. 2, pp. 203–219, 2017.
[44] H. Jiao, I. Alon, and Y. Cui, “Environmental dynamism, innovation, and dynamic capabilities: the case of China,” J. Enterprising Communities People