Journal of Entrepreneurship Education (Print ISSN: 1098-8394; Online ISSN: 1528-2651)


Human Capital Strategy Model for Improving Business Unit Performance, Based on Environmental Turbulence, Strategic Leadership and Organizational Culture (A Survey on Unit Business Indonesian Telecommunication Operator)

Author(s): Dwi Heriyanto Budisusetio, Ernie Tisnawati Sule, Erie Febrian, Yunizar

Performance of the business unit of some telecommunication operators in Indonesia is decreasing their income, especially some of the business unit of the legacy products (voice calls and sms) and connectivity (VPN, IP, leased line). Turbulent telecommunication business environment in Indonesia, especially from the tight competitive turbulence it shows that there is a price war for some products especially in the cellular business. The turbulent disruptive environment also decreasing the unit business performance. This situation signed with there is replacement product ‘Over the Top (OTT)’ business. Strategic leadership is good in transforming from a telecommunications company to a digital company, a good organizational culture, entrepreneurship and also the right strategy of human resources from a telecom operator's business unit so as to improve the performance of business units.

The purpose of this research is to find out the impact of the environmental turbulence, strategic leadership, culture of the organization to the Human Capital Strategy. The unit analysis in this research is in business unit in the five of big telecommunication operators in Indonesia. The observation has done to 190 surveys that determined by Partial Least Square-Path Modelling (PLS-PM) technique.

The result of this research revealed that turbulent telecommunication business environment in Indonesia is in the high category. Variable strategic leadership operator business unit in the good category, organization culture in the good category and has an impact to the variable Human Capital strategy.

This research resulting the model of Human Capital strategy DWI Model, with Human Capital strategy model that consist from delivering great people, Work on great culture and Integrating great organization.

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