Mahdani Ibrahim, Mohamed Sulaiman, Ali Al Kahtani, Ismael Abu-Jarad
This study was conducted to investigate the relationship between strategy implemention and firm performance. It also investigated the moderating role of formality structure on the relationship between strategy implementation and performance of manufacturing firms in Indonesia. The population in this study was the manufacturing firms listed in the Jakarta Stock Exchange (JSE). The Primary data on strategy implementaion were obtained through questionnaires to CEOs of manufacturing firms while the secondary data were obtained from the Indonesian Capital Market Directory report. Out of 164 questionnaires that were distributed to the CEOs of manufacturing firms, 127 were returned out of which only 112 were used for further analysis. The results of this research showed that there was a significant relationship between strategy implementation and performance of the manufacturing firms. The results also showed that there was a moderating effect of formalized structure on the relationship between strategy implementation (program of budget and control of resources) and performance of the manufacturing firms measured by Return on Equity (ROE). © IDOSI Publications, 2012.
Faculty of Economics, Syiah Kuala University, Darussalam, Banda Aceh, Indonesia; Department of Business Administration, Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia, 50728 Kuala Lumpur, P.O. Box: 10, Malaysia; Department of Human Resource Management, King Abdul Aziz University, Jeddah, Saudi Arabia; School of Business Management, College of Business, Universiti Utara Malaysia (UUM), 06010 Sintok, Kedah Darul Aman, Malaysia
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