ANALYSIS OF MILES AND SNOW TYPOLOGY TOWARDS BUSINESS PERFORMANCE: CASE STUDY OF INDONESIAN PUBLIC COMPANIES

Abstract

This study aim to relating to Miles and Snow Typology and company financial performance on public listed companies in Indonesia as the object of research. The research looks on listed companies typology composition and aims to determine which variables from Innovativeness, Risk Averse, and Operational Efficiency that significantly influence company financial performance. This research used descriptive analysis and multiple linear regression analysis, with Statistic Package for Social Science (SPSS) to test the relationship between variables. The model was tested based on financial data obtained between financial year 2010-2015. The sample that is selected is Liquid45 (LQ45) due to their large transaction value and frequency. This research finding reveals that for Defender companies, Innovativeness have positive relationship but does not significantly influence Financial Performance, while both Risk Averse and Operational Efficiency have positive relationship and does significantly influence Financial Performance. While for Prospector companies, All three variables; Innovativeness, Risk Averse and Operational Efficiency have significant influence towards Financial Performance, but only Risk Averse have negative relationship, while Operational Efficiency and Innovativeness have positive relationship towards financial performance.