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Original Research

THE ROLE OF PARENTING STRATEGY IN IMPROVING COMPANY PERFORMANCE: CASE STUDY AT PT TELKOM INDONESIA (PERSERO) TBK

CHAIRUDIN MIRZA 1, and SARI WAHYUNI 2.

Vol 18, No 02 ( 2023 )   |  DOI: 10.17605/OSF.IO/CZQEY   |   Author Affiliation: Postgraduate of Economic and Business Faculty, University of Indonesia 1,2.   |   Licensing: CC 4.0   |   Pg no: 1675-1689   |   Published on: 27-02-2023

Abstract

For multi-business state-owned enterprise, parenting strategy plays an important role as one of the corporate strategies. However, there was a tendency that several subsidiaries performance had not reached the target, still in the red report card position, and fighting for the same market. This shows that the parenting strategy implementation has not fully achieved the target. This study aims to describe and analyze the parenting strategy at PT Telkom Indonesia (Persero) Tbk (Telkom), its implementation and the role of subsidiaries on Telkom's performance. This study is based on qualitative research through direct observation, in-depth interviews, and Focus Group Discussion (FGD). The results show that according to CSS 2021-2025, parenting strategy is included in the delivery model direction. Telkom manages its business based on the Customer Facing Unit (CFU) by categorizing its product portfolio into five segments: Mobile, Consumer, Enterprise, Wholesale & International Business, and “other” segments. The implementation of parenting strategy has different levels of dominance depending on the maturity of the subsidiary. This study suggest that the most significant variable in parenting strategy that can improve the subsidiary performance are: portfolio management, investment support, HR support, network factors and access to information from the parent company.


Keywords

Corporate Performance, Parenting Strategy, Telkom