Better Performance: What Company Should Improve?
Dewi Nari Ratih Permada*
1Department of Management, Faculty of Economics and Business, Brawijaya
University, Malang, Jawa Timur 65145, Indonesia
Email: dewi.permada@gmail.com
Ananda Sabil Hussein
2Department of Management, Faculty of Economics and Business, Brawijaya
University, Malang, Jawa Timur 65145, Indonesia
Email: Ananda@ub.ac.id
Risna Wijayanti
3Department of Management, Faculty of Economics and Business, Brawijaya
University, Malang, Jawa Timur 65145, Indonesia
Email: risna@ub.ac.id
Kusuma Ratnawati
4Department of Management, Faculty of Economics and Business, Brawijaya
University, Malang, Jawa Timur 65145, Indonesia
Email: kusuma@ub.ac.id
*Correspondence author: dewi.permada@gmail.com
Abstract
This study examines the performance of 35 Indonesian Consumer Non-Cyclical Companies before and after the COVID-19 impact, focusing on stability and survival in the manufacturing sector. Limited to companies with a minimum 12-year operational period, we analyzed the factors that can influence a manufacturing company so that it can develop and improve its performance of that company. This analysis concerns 1) Firm Corporate Governance with its influence on manufacturing firm Dynamic Performance and 2) its influence on Intellectual Capital. Several previous studies also explain that effective firm corporate governance has a positive relationship with the dynamic performance of a firm. In this research, there are 4 elements assessed in Firm Corporate Governance, namely: a) board structure; b) Board processes; c) Composition of the board; and d) Characteristics of the board. Then we carried out; a 3) analysis of the influence of Intellectual Capital on Dynamic Performance. Dynamic Performance is measured through DEA (Data Envelopment Analysis). We also conducted 4) an analysis of the mediating influence of Intellectual Capital on Corporate Governance firms to 5) the moderating influence of Investment Opportunity Set on Corporate Governance firms on Dynamic Performance. The findings reveal that Corporate Governance positively and significantly affects firm Dynamic Performance through direct effect to Dynamic Performance using Stata analysis (t count 2.81 > 1.96 and P Values 0.005 <0.05) and Corporate Governance also affect Intellectual Capital (t count 2.68 > 1.96 and P Values 0.007 < 0.05) through indirect effect to Dynamic Performance using Stata analysis. Intellectual Capital variable positively and significantly affects firm Dynamic Performance through direct effect to Dynamic Performance using Stata analysis (t count 2.46 > 1.96 and P Values 0.015 <0.05). Corporate Governance mediated by Intellectual Capital has a positive and significant effect on firm Dynamic Performance but moderating variables cannot be concluded as moderating variables Investment Opportunity Set Moderation on the influence of Corporate Governance on Dynamic Performance is not significant. In the control variable, Firm Size and Sales Growth do not affect Dynamic Performance but Firm Age and Debt Asset Ratio have a negative effect on Dynamic Performance so the older and higher the Debt Asset Ratio, it will have a negative effect on the company’s Dynamic Performance..
Keywords: Dynamic Performance, Corporate Governance, Intellectual Capital, Investment Opportunity