Strategic Performance Management Practices and Operational Excellence in Palm Oil Agribusiness: A Qualitative Case Study from South Kalimantan, Indonesia
DOI:
https://doi.org/10.33021/ijfbp.v9i1.6758Abstract
Introduction/Main Objectives: The palm oil industry employs millions of workers in dispersed plantation environments, yet the business practices through which agribusiness firms convert workforce management into competitive performance remain underexamined. This study examines how strategic performance management practices shape operational excellence, understood here as productivity and cost efficiency, in an Indonesian palm oil company. Research Methods: Drawing on the resource-based view, human capital theory, and the management practices literature, we conducted a qualitative single case study of PT. XYZ, a vertically integrated palm oil company in South Kalimantan. Data were collected over five months through twenty-three semi-structured interviews with informants ranging from senior management to operational workers, analysis of internal performance records, and non-participant observation, and were analyzed using thematic analysis. Finding/Results: The findings identify four mechanisms through which performance management affects operational outcomes: goal cascading that ties individual effort to organizational targets, continuous monitoring and feedback that reduce information gaps across dispersed operations, competency development that converts performance gaps into capability gains, and performance-linked incentives that balance output with quality and cost discipline. Conclusion: The study shows how deliberately designed business practices build the organizational capability that underpins competitiveness and business sustainability in emerging-economy agribusiness, and it offers practical guidance for plantation firms, including the family-owned enterprises that are common in the sector, seeking to professionalize their management.
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