FACTORS INFLUENCING THE BUSINESS SUCCESS: A SURVEY OF STATE OWNED ENTERPRISES OF MERGER PROCESS

This research wants to test and analyze the impact of strategic leadership toward business success on three state-owned enterprises (SOEs) that are in the process of merging. These three companies will be merged and they will become one of the world class holding companies. The type of this research is a survey using questionnaire and interview with the key manager that can represent the company. Population and respondents are the managers of three state-owned enterprises who have direct involvement on changing program and act as the agent of change. The sampling technique uses stratified proportional area random sampling. The data analysis technique uses Partial Least Square. The result is that: (1) the strategic leadership can improve empowerment and work motivation of the manager, (2) the empowerment can increase work motivation of manager and company business success and (3) the company business will be able to increase as the manager work motivation increases. On the other side, this research finding is surprising because strategic leadership is perceived cannot affect the company business success in the future. It seems that there are excessive worries toward company business failure in the future.