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Sustainable Growth of Indonesia Palm Oil Companies:
Synchronizing Agility, Culture, and Engagement
ICOSMI, 14-16 September 2020
Introduction & Objectives • Because of its highest productivity and lowest production of cost, it makes CPO becomes main substitute commodity for soybean, rapeseed and sunflower oil as the source of vegetable oil [1] • For the national interest, CPO production reached 37.8 million tonnes in 2017 and contributed to around 12% of the country’s non oil and gas exports. In the context of global trade, Indonesia produced 58% while Malaysia produced 29% in the global market of CPO [2]. Indonesia is a biggest producer of CPO in the world. • The oil palm plantation companies are facing a various challenges both in ecological, social and managerial perspective for aiming sustainable growth. This article is focused on managerial issues, especially related to talent shortage in managerial resources. ICOSMI, 14-16 September 2020 2 Introduction & Objectives • Survey Tenaga Kerja Nasional 2018; Indonesian labor force working in the agriculture, forestry and fisheries sectors experienced a generationally decline. Previous generations were around 43.57% to only 23.61% in the Gen- X generation and continues to decline to 16.04% in Millennials generation • This declining trend leads to the decreasing talent supply for managerial resources in oil palm plantation companies. • Relating to this talent shortage, oil palm plantation companies should be able to effectively answer the two important questions: (1) how to obtain and retain managerial resources to work over a long period and (2) how to obtain and retain managerial resource to work in a challenging remote locations • Therefore this paper is focused on work engagement, business agility, corporate culture, and its interrelationship. ICOSMI, 14-16 September 2020 3 Methods • This study is a quantitative reserach by using online questionnaire for gathering the data. This study used convenience and snowballing as sampling methods. • The seminars were conducted in Jakarta, Pekanbaru (Sumatera), and Pontianak (Kalimantan). From the three seminars, the study got 290 responses from 102 companies. • From the snowballing approach, this study got 200 responses from 72 oil palm companies. • Total responses were 490 but the completed and valid were only 477 responses from 132 palm oil companies
ICOSMI, 14-16 September 2020
4 Results & Discussion
ICOSMI, 14-16 September 2020
5 Results & Discussion
ICOSMI, 14-16 September 2020
6 Results & Discussion • Holistic work engagement is influenced by multi-layer agility significantly. Multi-layer agility influences 46,6% on holistic work engagement. • Learning culture impacts on learning agility, leadership agility, and strategic agility significantly. Learning culture impacts on multi-layer agility significantly. • Learning culutre impact holistic work engagement indirectly. By impacts on multi-layer agility then multi-layer agility impacts holistic work engagement. • Strategic agility also does not impact on learning agility directly. Strategic agility influences leadership agility then leadership agility impacts on learning agility.
ICOSMI, 14-16 September 2020
7 Conclusion • For sustaining the business growth in changing environment, it need work engagement of the managerial resource holistically. • Holistic work engagement can be aimed by developing multi-layer business agility. • Developing learning culture is an imperative for sustaining multi- layer agility.