Corporate Parenting and Center Development on Indonesia Automotive Manufacturer to Improve Its Business Performance

Purpose: This study identifies and analyzes the corporate parenting strategy for a private manufacturing firm in Indonesia with six different business units, that are focused on the automobile sector. XYZ Group is a manufacturing company that has six business units and partnering with overseas companies. XYZ, formerly a SME, has significant growth to become a medium-large industry. The objective of this study is to enhance the overall business performance in manufacturing company, through corporate-level strategy by considering external environment in related industry. Design/methodology/approach: This research employs a case study design utilizing qualitative method. Primary data collection method was conducted through interviews, internal surveys, and utilizing focus group discussions as a data verification method. Secondary data from corporate reports to support the primary data. This research uses the parenting advantage framework, parenting strategy archetypes approach, and parenting fit matrix for corporate- level strategy and corporate center development. Findings: The result analysis and identification according to the parenting fit matrix, five XYZ Group's subsidiaries are in "Heartland" area and one business unit in "Edge-of-Heartland" area. A complete corporate parenting approach is conducted, integrates the strategies of "Functional Leader" and "Strategic Guide", including synergy in sales, cost, and managerial across business units, with a unified corporate center encouraging the strategic approach. Research limitations/implications: This analysis is limited to the main subsidiaries of XYZ Group. It proposes more investigation into the specific aspects of operational management and the complexities of organizational structures within corporate centers. Originality/value: The study presents an identification and analysis of corporate-level strategy for companies engaged in the automotive manufacturing industry in Indonesia, through corporate parenting advantage and center development, particularly relevant to the professionals, practitioners, and academics in the automotive manufacturing industry, especially those who manage various diversified business units.