THE EFFECT OF FUNCTIONAL FIELD COMPETENCE ON BANKING PERFORMANCE AT BANK IN JAKARTA
Amount: THE EFFECT OF FUNCTIONAL FIELD COMPETENCE ON BANKING PERFORMANCE AT BANK IN JAKARTA
Authors: Helen Erlyana Sihombing
Memberships: Master of Accounting Study Program, Faculty of Economics and Business, Universitas Airlangga Surabaya
Publisher: Airlangga University
Abstract
Economic globalization causes business competition in various industries to take place dynamically in line with environmental changes. The banking sector in Indonesia since regulation in 1988 which was then followed by other regulations has undergone very basic changes, since that period the banking sector has developed very rapidly, and this can be seen from the very large growth in the number of banks. As a result of this growth, competition in the banking sector has become more competitive. This condition has become increasingly difficult due to the recession in the 1997 period which was marked by many banks experiencing liquidation difficulties and even had to be liquidated by the government.
On the other hand, economic globalization as a form of market openness requires banks to be able to adapt international regulations, in accordance with those stipulated in the Bank for International Settlement (BIS), so that banks must not only adapt to increasingly fierce competition conditions and economic conditions that are in recession, they must also meet provisions of BIS in order to be able to conduct business activities internationally. The existence of banks in maintaining their business continuity must be supported by competence in functional areas consisting of marketing, technology, and operational competencies.
This study analyzes the effect of competence in banking functional fields (marketing, technology, and operations) on banking performance which is set as the Bank's assessment standard. From the results of these studies, it can be concluded that competence in the field of marketing, competence in the field of technology, and competence in the field of operations in banking has a significant influence on banking financial performance at banks in Jakarta.
This research is expected to provide information for the banking sector in developing sources of excellence in functional areas in order to improve performance and achieve the level of soundness as determined by Bank Indonesia.
Keywords: Marketing Competency, Innovation Competency, Operational Competency, and Banking Performance
sources: http://repository.unair.ac.id/34702/
