Strategic Orientation and Absorptive Capacity on Suppliers Performance: The Moderating Effects of Empowerment Climate
Ratih Agustina, Badri Munir Sukoco, Andri Rianawati

Departement of Management, Universitas Airlangga

Abstract

The success of Astra group as the largest group of automotive companies in Indonesia can not be separated from the role of suppliers that contribute to buyer-supplier partnership. Suppliers seek to improve their quality by doing organizational learning that can be known using the concept of absorptive capacity. Learning outcomes by suppliers can be an important resource for creating value, in this case supplier performance Using a strategic orientation perspective, this study shows that suppliers who prioritize market orientation and entrepreneurial orientation will find it easier to absorb, process and utilize new knowledge (through absorptive capacity) because they are more sensitive to change and more risk-averse. On the other hand, Astra Groups consistent empowerment efforts to suppliers have become a corporate value. Supplier perceptions of Astra Group empowerment efforts, establishing an empowering climate that can strengthen or weaken the role of absorptive capacity towards supplier performance. This study uses a sample of 85 people who are suppliers of Astra Group in Java. To prove the relationship between variables, this study uses Structural Equation Modeling (SEM).

Keywords: market orientation, entrepreneurship orientation, absorptive capacity, empowerment climate, supplier performance

Topic: Strategic Management, Entrepreneurship and Contemporary Issues