Strategic Intent As A Driver Of Bank Performance: The Role Of Human Resource Specialization, Innovation Strategy, And Enterprise Risk Management
DOI:
https://doi.org/10.29284/z90qs107Keywords:
strategic intent, enterprise risk management, human resource specialization, innovation strategy, rural bank performanceAbstract
The collapse of 20 rural banks (BPR) in Indonesia in 2024—the highest figure in the past decade—highlights the urgent need for strategic measures to enhance industry resilience. This study investigates the effect of strategic intent on BPR performance, mediated by human resource (HR) specialization, innovation strategy, and enterprise risk management (ERM). Using data from 783 private conventional BPRs with core capital ≥ IDR 6 billion, the study applies partial least squares structural equation modeling (PLS-SEM) version 4.0 for analysis. The results indicate that strategic intent significantly influences performance both directly and through the mediating roles of HR specialization and ERM. Conversely, innovation strategy does not have a significant effect and fails to mediate the relationship, primarily due to limited resources, conservative market preferences, and regulatory constraints. These findings suggest that innovation alone is insufficient to drive performance without the support of strong HR capabilities and risk management frameworks. This study contributes to the extension of Strategic Intent Theory (Hamel & Prahalad, 1989) by integrating ERM as a crucial mechanism for sustaining long-term strategic vision. Practically, the findings underscore the importance of aligning strategic intent with HR development and ERM to enhance competitiveness and sustainability in the rural banking sector.
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