THE INFLUENCES OF PRIMARY STAKEHOLDERS, FARMERS' CAPACITY, AND COMPETITORS' BEHAVIORS ON BANK DYNAMIC CAPABILITY EMPIRICAL STUDY OF BANK DYNAMIC CAPABILITY ON THE IMPLEMENTATION OF PUBLIC BUSINESS CREDIT OF AGRICULTURAL SECTOR IN BANK INDUSTRY IN INDONESIA
International Journal of Economics, Commerce and Management United Kingdom
KUR (Kredit Usaha Rakyat or Public Business Credit) in agricultural sector, originally in the format of Food and Energy Credit, is a main financing program to support the important program of national food security. KUR in agricultural sector is expected to increase the farmers' business performance on both results and productivity of food crops, livestock, and fisheries in order to achieve food self-sufficiency. KUR complex problems are affecting the declining of KUR disbursing performance in
... ing performance in agricultural over time. This study geographically covers about 80% of © Lestariningsih, Suryana, Sucherly & Febrian Licensed under Creative Common Page 298 Indonesia lands, with the Branch Managers as the observation units and Branch Offices of KUR Executing Banks as the analytical units. The main purposes of the research are to give knowledge contribution to strategic management domain, as well to provide recommendation for improving the dynamic capability of executing Bank in KUR agricultural sector. The research uses the qualitative and quantitative methods with SEM statistical test, reviewing the variables of the primary stakeholders, the capacity of farmers, and the competitors' behavior as the antecedents of the dynamic capability of agricultural sector KUR executing banks. The results reveal that primary stakeholders gives no direct impact to bank dynamic capability; while competitors' behavior has significant role on bank dynamic capability. Further results show that farmers' capacity is proven to have the roles to improve bank dynamic capability.