The Influence Of Business Strategy On Relationship Between Political Connection And Market Performance

摘要

Political factor is one of the environmental factors influencing the success of business growth in developing countries such as Indonesia. Thiscondition happens because capital market in developing countries such is managed under law supremacy, and resources allocation is also controlledand managed by government. The purpose of the research is to analyze and test the influence of business strategy on relationship between politicalconnection and market performance. The research uses purposive sampling on manufacturing companies listed in Indonesia Stock Exchange period2012 – 2016 using SMARTPLS 3.0 analytical tools. The result shows that political connection positively and significantly influences on marketperformance. While the research contributes that low costs and differentiation strategy do not moderate the influence of political connection on marketperformance. The research contributes that political connected companies (connected between government and military) may provide benefits, such assimplification on regulatory, network amongst other companies and regulation, and simplification for project winning with end result to increase sales,then it finally improves market performance.