The Role of Leadership, Dynamic Capabilities, and Organization Culture, in Company Performance of Manufacturing Industries in Indonesia (Study in Food and Beverages Industries)

Globalisation economy impacted in Indonesia industrial sectors especially in manufacturing. This effect become worst with situation of the crisis energy, increasing the minimum wages, increasing the electrical and fuel price, so the cost of product will be increase significantly, in 2013 production cost incremental is 25%. While the incremental price of goods just only maximum 1,41%. In this condition the role of the innovation, which focusing research in manufacturing company is esentially need, with the objective to improving the products and market competitiveness in a way to increase the company performance. Manufacturing industries in Indonesia have an important role in national economic, with contributes by 20,85% of national GDP (Gross Domestic Products), and 60,02% contribution to total national export in 2012. This research objectives will help to improve performance of manufacturing industries in Indonesia, through leadership, innovation culture, and dynamic capabilities. The quantitative research were conducted with unit analysis is company, focusing to the 190 manufacturing companies—with food and beverages producers—under GAPMMI Organization. From 63 valid datas, and analyzed by Smart PLS2. The results are the leadership, dynamic capability and innovation culture supported to the company performance directly, while dynamic capability has the highest impact, follow by leadership, and innovation culture. Leadership and dynamic capabilities also has indirect impact to the company performance through the innovation culture, but leadership role have higher impact compare to the dynamic capabilty. Now the business leaders understand what variable has very dominant factors to increased the company performance, and how the prioritization of those three factors to be applied in the strategic management in order to increase the performance of the manufacturing company especially in food and beverages industries in Indonesia.