EMPIRICAL ANALYSIS OF FIRM RESOURCES IN THE BANKING INDUSTRY IN INDONESIA: A RESOURCE - BASED VIEW

Firm resources have been considered to be firm strategic assets and have an important role in gaining a competitive advantage. The purpose of this paper is to investigate the role of internal resources that leads to bank competitiveness in Indonesia. To this end, this study adopts a resource - based view concept to identify the firm resources that influence bank competitiveness. A regression analysis is built on balanced panel data
set comprising 30 observations of top 10 Indonesia commercial banks (key players) ranging from 2013 to 2015. All data were collected from secondary sources. The analysis reveals that capital adequacy ratio (CAR),
branch network, and brand value are significantly related to bank competitiveness, which is measured by return on asset (ROA) and return on equity (ROE). Specifically, branch network and brand value are positively
correlated, while CAR and training has found negatively correlated with ROA and ROE. Furthermore, training is the only indicator t
hat found insignificant in this study