Partnership strategy model in developing renewable power plant : case study in Indonesia

Abstract

Purpose: This research was carried out as an effort to encourage performance improvement of renewable energy industry development in Indonesia and effort needs to be supported by development of optimal partnership strategies through dynamic capabilities, supply chain performance and right regulations. The purpose of this study was to determine the effect of partnership strategy of renewable energy companies in creating a better business performance in Indonesia. Design/Methodology/Approach: This research is based on data collection and testing of renewable power plant company models and test data using partial least square equipped with various supporting data obtained from government institutions. Findings: Dynamic capability with average value, supply chain performance and overall regulations have been determined with conditions that are not optimal in all variables studied so that they influence implementation of partnership strategy. Practical Implications: In optimal conditions it is expected that power plant industry is able to provide sustainable electricity supply in line with ever-increasing demand, expand electrification reach to remote villages, able to transform use of primary energy sources from fossils to environmentally friendly renewable energy where potential is widely spread throughout region. Originality/Value: The study is expected to be reference for further research relating to development of partnership strategy model in improving business performance that is influenced by dynamic capability, supply chain performance and regulation framework.