THE ROLE OF CSR AND PARTNERSHIP STRATEGY IN IMPROVING LOYALTY OF PT TELKOM FOSTER PARTNERS IN INDONESIA Suparjiman, Erika Nurmartiani
UNiversitas Sangga Buana
Abstract
PT Telkom implements CSR programs and partnership funds with the target of business actors as Foster Partners. To achieve the target of PT Telkom^s fostered program, it is necessary to have partner loyalty to utilize PT Telkom Indonesia^s products. However, their partner loyalty is not yet high. This condition is thought to be related to the implementation of CSR and partnership strategy run by PT Telkom. Therefore, this study aims to examine the effect of CSR and partnership strategy on the loyalty of PT Telkom foster partner.
Based on the research objectives, the quantitative research method that will be used is causality research. The unit of analysis is Small and Medium Enterprises (UKM) which have received the Corporate Social Responsibility (CSR) program from PT. Telkom Indonesia. Meanwhile, the units of observation are the owners and managers of the UKM business. The population is all SMEs assisted by PT Telkom throughout Indonesia. The requirements to be used as sample units are SMEs that have been guided by PT. Telkom minimum 2 (two) years. The sample was taken as many as 200 SMEs which were distributed to 7 regions with proportional allocation based on the number of population in each region and taken randomly (Simple Random Sampling). This analysis is to answer the research objectives, using Structural Equation Modeling (SEM).
The results of this study indicate that CSR and the partnership strategy affect the loyalty of PT Telkom foster partners. Partner loyalty is more dominantly formed by the partnership strategy than by CSR. Based on this result, it is recommended for the management of PT Telkom who manages the partnership program to develop a partnership strategy in terms of: trust, independence, agreement, commitment, and coordination. Besides, it is also necessary to develop CSR in terms of: development, utilization, distribution, and impact.
