EFFECT OF MARKET ORIENTATION, GOOD GOVERNANCE, AND PROFESSIONAL LEADERSHIP ON MANAGERIAL PERFORMANCE OF SPECIAL UNIT OF UPSTREAM OIL AND GAS: A CASE STUDY OF SKK MIGAS INDONESIA

Abstract

This study has a goal to investigate the relationship between the effect of market orientation, good governance
and professional leadership on managerial performance of Special Unit of Upstream Oil and Gas (SKK Migas)
in Indonesia. This study also looked at the various variables that determine the survival of the industry,
particularly oil and natural gas company in terms of managerial performance. The company's performance will
be analyzed with some variables of market orientation, good governance, and professional leadership to
demonstrate empirically the effects of the variables. The samples are collected from the population of staff and
employees totaled 110 respondents. The model is estimated by maximum likelihood estimation (MLE). Study
results showed simultaneously and partially that market orientation significantly influence the corporate
performance which followed by professional leadership and good governance. It is followed by professional
leadership which affecting the corporate performance of SKK Migas. This study implies that competitiveness of
the state-owned enterprise requires an understanding of market orientation so that the company can survive in a
changing business environment.