Isomorphism in the Banking Industry of the Regional Development Banks in Indonesia

Ferry Novindra Idroes, Ernie Tisnawati Sule, Popy Rufaidah, Diana Sari

2017

Abstract

Isomorphism is an industry pressure on companies to be uniform through coercive, normative and mimetic mechanisms. Banking is an industry that has strong isomorphism. This study aims to investigate isomorphism in the banking industry of the Regional Development Bank (BPD) group in Indonesia. This research uses mixed method research design. The first stage is to collect questionnaire data on top management and financial data from 26 BPDs for quantitative data analysis. Quantitative data processing uses partial least square-structural equation model (PLS-SEM) to observe the relationship between the coercive, normative and mimetic dimensions of isomorphism variable. The second stage is the collection of information through in-depth interviews and focus group discussions with BPD leaders, the Association of Regional Banks (Asbanda), and the Financial Services Authority (OJK) to review the results of the quantitative. The results show that mimetic isomorphism pressure has the greatest influence in creating uniformity in the industry. The success of one company in marketing and operating will soon be imitated by competitors and in turn create uniformity in the industry. The findings suggest that the BPD industry environment situation in Indonesia is waiting and seeing the actions that competitors undertake to be imitated if they show superior performance.

Paper Citation

in Harvard Style

Idroes F., Sule E., Rufaidah P. and Sari D. (2017). Isomorphism in the Banking Industry of the Regional Development Banks in Indonesia.In 1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP, ISBN 978-989-758-315-5, pages 452-457. DOI: 10.5220/0007083904520457

in Bibtex Style

@conference{iciebp17,
author={Ferry Novindra Idroes and Ernie Tisnawati Sule and Popy Rufaidah and Diana Sari},
title={Isomorphism in the Banking Industry of the Regional Development Banks in Indonesia},
booktitle={1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP,},
year={2017},
pages={452-457},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0007083904520457},
isbn={978-989-758-315-5},
}

in EndNote Style

TY - CONF

JO - 1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP,
TI - Isomorphism in the Banking Industry of the Regional Development Banks in Indonesia
SN - 978-989-758-315-5
AU - Idroes F.
AU - Sule E.
AU - Rufaidah P.
AU - Sari D.
PY - 2017
SP - 452
EP - 457
DO - 10.5220/0007083904520457