MULTIVARIATE ANALYSIS OF STRATEGIC MANAGEMENT AND BUSINESS DEVELOPMENT IN SERVICE SECTOR

The purpose of this study is to examine the impact of strategic management, preferred strategies, core competencies and strategic management processes for business development in banking sector of Indonesia. To address this objective, primary data is collected from banking employees in Indonesia, working at different private and public sector banks. A sample of 272 respondents is finally collected for confirmatory factor analysis and multivariate techniques. Findings through CFA indicate that all items are significant to add in structural model through reasonable factor loadings. In the next step, structural model of the study is developed for better understating of relationship between the variables. It is observed that SM, PS, CC, and SMP are significantly and positively impacting on business development in banking sector of Indonesia. In addition, strategic policy makers like top level management in banks are also suggested to consider this document as an evidence for the development of any business plan while keeping the exogenous factors as main predictors to impact on their decision-making process. However, as per the limitations, this study should be reconsidered with better sample size, targeting higher level management for better understanding of strategic management and business development in coming future.