Indonesia Conference Directory

This study scrutinize the business strategy at State-Owned Enterprises (SOEs) in Indonesia that is affected by innovation. Formulation and implementation of SOEs business strategies are theoretically and empirically determined by innovation. The purpose of this study was to determine and analyze the effect of innovation on business strategy of SOEs. This study was conducted using a survey method with a quantitative approach.The units of analysis of this study were 64 SOEs that have applied the Criteria for Performance Excellence since 2012. Data were obtained from survey results through questionnaires distributed directly to the representative of SOEs managements. Data were analyzed using descriptive statistical analysis and SEM-PLS.The results in general reveal thatinnovation has a positive and significant effect on business strategy. The impact of this study may be continued on a discussion of excellent performance.