THE EFFECT OF BOARD SIZE ON COMPANY PERFORMANCE: THE ROLE OF INNOVATION AS INTERVENING
Abstrak
This research aims to examine the influence of board size on company performance through innovation as an intervening variable. The object of this research is manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2018–2022 period. Based on the purposive sampling used, there are 17 companies that fulfill the criteria, and 24 observations are outliers, so there were 61 observations processed. The analysis technique used is PLS-SEM using Warp PLS 8.0. This research shows that board size has a significant positive effect on company performance. The larger the board size in a company, the higher the company's performance. Furthermore, the variable board size has a significant positive effect on innovation. This shows that the larger the board, the greater the innovation created by the company. Then innovation can mediate the size of the board on company performance. Previous research did not test the role of innovation as a mediation linking company performance. Theoretically, this research contributes to the study of agency theory and signaling theory. Practically, this research is useful for companies to improve their company performance through the role of board size and through innovations created by the company so as to produce profits that can improve company performance.
Referensi
Akram, Farheen, Muhammad Abrar, and Ul Haq. 2022. “Integrating Agency and Resource Dependence Theories to Examine the Impact of Corporate Governance and Innovation on Firm Performance Theories to Examine the Impact of Corporate.” Cogent Business & Management 9 (1). https://doi.org/10.1080/23311975.2022.2152538.
Alshetwi, Mohammed. 2017. “The Association Between Board Size, Independence and Firm Performance: Evidence from Saudi Arabia.” Global Journal of Management and Business Research: D Ccounting and Auditing 17 (1): 17–28.
Anggreni, Maretha Kris Dwi, and Robiyanto. 2021. “Pengaruh Struktur Modal Dan Strukture Kepemilikan Terhadap Kinerja Perusahaan Dengan Corporate Governance Sebagai Variabel Moderasi.” Jurnal Ekonomi Bisnis Dan Kewirausahaan (JEBIK) 10 (2): 100–120.
Balagobei, Saseela. 2018. “Corporate Governance and Firm Performance: Empirical Evidence from Emerging Market.” Asian Economic and Financial Review 8 (12): 1415–21. https://doi.org/10.18488/journal.aefr.2018.812.1415.1421.
Buwana, Muhammad Akbar Langlang, and Siti Nursyamsiah. 2018. “Analisis Implementasi Inovasi Terbuka : Peran Kerjasama Eksternal Terhadap Inovasi Produk Dan Kinerja Perusahaan (Studi Empiris Pada Usaha Kecil Dan Menengah (UKM) Batik Di Yogyakarta).” Jurnal Manajemen Dan Bisnis Indonesia 6 (1): 45–64. https://doi.org/10.31843/jmbi.v6i1.182.
Ellen, Ellen, and Kartika Nuringsih. 2020. “Pengaruh Struktur Kepemilikan, Keputusan Keuangan Dan Risiko Bisnis Terhadap Kinerja Perusahaan.” Jurnal Manajerial Dan Kewirausahaan 2 (2): 417. https://doi.org/10.24912/jmk.v2i2.7935.
Fajarwati, Elisa, and Rini Setyo Witiastuti. 2022. “Board of Directors Structure and Firm Performance: Evidence from Indonesia and Malaysia.” Management Analysis Journal 11 (1): 8–21. https://doi.org/10.15294/maj.v11i1.51672.
Fatmawati, Ikha, and Ceacilia Srimindarti. 2022. “Pengaruh Struktur Aktiva, Profitabilitas Dan Struktur Modal Terhadap Kinerja Perusahaan.” JIMEA | Jurnal Ilmiah MEA (Manajemen, Ekonomi, Dan Akuntansi 6 (1): 2621–5306.
Gonzales-bustos, Juan Pablo, Ana Beatriz Hern, and Xiaoni Li. 2020. “Board Effects on Innovation in Family and Non-Family Business.” Journal Heliyon 6 (July). https://doi.org/10.1016/j.heliyon.2020.e04980.
Gulzar, Ishfaq, and S M Imamul Haque. 2020. “Corporate Governance and Firm Performance in Indian Textile Companies : Evidence from NSE 500.” Indian Journal of Corporate Governance, 1–17. https://doi.org/10.1177/0974686220966809.
Hasina, Zahwaril, and Yustrida Bernawati. 2021. “Gender on Board and the Impact to Firm Performance through Innovation as Mediating Variable: Evidence from Indonesian Non-Financial Firms.” Jurnal Keuangan Dan Perbankan 25 (2): 400–414. https://doi.org/10.26905/jkdp.v25i2.5462.
Kamajaya, I Wayan Diva Pradita, and I.g.a.m Asri Dwija Putri. 2019. “Pengaruh Pertumbuhan Perusahaan, Kepemilikan Manajerial Dan Kebijakan Dividen Pada Kinerja Perusahaan Manufaktur Di BEI.” E-Jurnal Akuntansi Universitas Udayana 26 (2): 997–1021.
Kijkasiwat, P, A Hussain, U Nisar, and ... 2023. “The Mediating Effect of Innovation On The Relationship Between Corporate Governance and Firm Performance: Evidence From Developed And Developing Countries.” Asian Academy of Management Journal. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4324353.
Kijkasiwat, Ploypailin, and Pongsutti Phuensane. 2020. “Innovation and Firm Performance: The Moderating and Mediating Roles of Firm Size and Small and Medium Enterprise Finance.” Journal of Risk and Financial Management 13 (5). https://doi.org/10.3390/jrfm13050097.
Lee, Ryeowon, Jong Ho Lee, and Tony C. Garrett. 2019. “Synergy Effects of Innovation on Firm Performance.” Journal of Business Research 99 (August): 507–15. https://doi.org/10.1016/j.jbusres.2017.08.032.
Miao, Miao, Muhammad Irfan Khan, Saghir Pervaiz Ghauri, and Syed Imran Zaman. 2023. “The Effect of Corporate Governance on Firm Performance: Perspectives from an Emerging Market.” Economic Research-Ekonomska Istrazivanja 36 (3). https://doi.org/10.1080/1331677X.2023.2277275.
Mishra, Supriti. 2023. “Do Independent Directors Improve Firm Performance? Evidence from India.” Global Business Review 24 (5): 1092–1110. https://doi.org/10.1177/0972150920917310.
Muslih, Mochamad, and Intan Hartati. 2022. “Pengaruh Tata Kelola Perusahaan Dan Ukuran Perusahaan Terhadap Kinerja Perusahaan Lq45 Di Bursa Efek Indonesia (Bei).” Jurnal Kewirausahaan, Akuntansi Dan Manajemen Tri Bisnis 4 (1): 165–80. https://doi.org/10.59806/tribisnis.v4i1.155.
Nawaz Khan, Sajjad, Rai Imtiaz Hussain, Shafique Ur-Rehman, Muhammad Qasim Maqbool, Engku Ismail Engku Ali, and Muhammad Numan. 2019. “The Mediating Role of Innovation between Corporate Governance and Organizational Performance: Moderating Role of Innovative Culture in Pakistan Textile Sector.” Cogent Business and Management 6 (1): 1–23. https://doi.org/10.1080/23311975.2019.1631018.
Perangin-Angin, Chindy Pebrika, Mayla Khoiriyah, and Raja Adri Satriawan. 2023. “Pengaruh Karakteristik Komite Audit Terhadap Kinerja Perusahaan.” Jurnal Kajian Akuntansi Dan Bisnis Terkini 4 (2): 345–55.
Pfeffer, Jeffrey. 1972. “Size and Composition of Corporate Boards of Directors: The Organization and Its Environment.” Corporate Governance: Values, Ethics and Leadership 17 (2): 53–64. https://doi.org/10.2307/2393956.
Pondrinal, Muhammad, Rozi Destian, Hanna Pratiwi, Desi Ilona, Program Studi Akuntansi, and Fakultas Ekonomi. 2022. “Pengaruh Good Corporate Governance Terhadap Innovation Performance The Influence of Good Corporate Governance on Innovation Performance.” Jurnal Akuntansi Dan Bisnis 8 (1): 1–8. https://doi.org/10.31289/jab.v8i1.5424.
Riyadh, Hosam Alden, Eko Ganis Sukoharsono, and Salsabila Aisyah Alfaiza. 2019. “The Impact of Corporate Social Responsibility Disclosure and Board Characteristics on Corporate Performance.” Cogent Business and Management 6 (1). https://doi.org/10.1080/23311975.2019.1647917.
Sarpong-Danquah, Beatrice, Kwasi Oko-Bensa-Agyekum, and Emmanuel Opoku. 2022. “Corporate Governance and the Performance of Manufacturing Firms in Ghana: Does Ownership Structure Matter?” Cogent Business and Management 9 (1). https://doi.org/10.1080/23311975.2022.2101323.
Setyowati, Jihaan Aatikah Almaasi, and Endang Dwi Retnani. 2021. “Pengaruh Kinerja Keuangan Dan Ukuran Perusahaan Terhadap Pertumbuhan Laba Perusahaan Farmasi.” Jurnal Ilmu Dan Riset Akuntansi 12: 2088–2106.
Sierra-morán, Johana, Laura Cabeza-garcía, Nuria González-álvarez, and Juan Botella. 2021. “The Board of Directors and Firm Innovation : A Meta-Analytical Review.” Business Research Quarterly. https://doi.org/10.1177/23409444211039856.
Sierra-Morán, Johana, Laura Cabeza-García, Nuria González-Álvarez, and Juan Botella. 2021. “The Board of Directors and Firm Innovation: A Meta-Analytical Review.” BRQ Business Research Quarterly. https://doi.org/10.1177/23409444211039856.
Sumartini, Emi. 2020. “Pengaruh Struktur Modal , Ukuran Perusahaan Dan Pendidikan Dewan Komisaris Terhadap Kinerja Perusahaan Manufaktur Di Bursa Efek Indonesia.” Jurnal Dinamika Ekonomi Dan Bisnis 17 (02): 143–49.
Supriyanto, and Janice Soe. 2021. “Analisa Pengaruh Tata Kelola Perusaahaan Dan Struktur Modal Terhadap Kinerja Persahaan Di Bursa Efek Indonesia Tahun 2016-2020.” JIMEA | Jurnal Ilmiah MEA (Manajemen, Ekonomi, Dan Akuntansi) 5 (3).
Timorria, Ilm Fathimah. 2022. “Laba Garudafood (GOOD) Naik 67,48 Persen Sepanjang 2021.” Bisnis.Com. 2022. https://market.bisnis.com/read/20220307/192/1507714/laba-garudafood-good-naik-6748-persen-sepanjang-2021#:~:text=Laba Garudafood (GOOD) naik dari,Rp424%2C86 miliar tahun 2021.&text=Bisnis.com%2C JAKARTA — Emiten,kenaikan laba signifikan pada 2021.
Tung, Le Thanh, and Quan Minh Quoc Binh. 2021. “The Impact of R&D Expenditure on Firm Performance in Emerging Markets: Evidence from the Vietnamese Listed Companies.” Asian Journal of Technology Innovation 30 (2): 447–65. https://doi.org/10.1080/19761597.2021.1897470.
Yopie, Santi, and Desiani. 2021. “Pengaruh Kinerja Perusahaan Keluarga Dengan Gender, Kepemilikan Manajerial, Kepemilikan Keluarga, Board Characteristic, Umur Perusahaan, Ukuran Perusahaan Dan Sektor Bisnis Perusahaan.” JIMEA | Jurnal Ilmiah MEA (Manajemen, Ekonomi, Dan Akuntansi) 5 (3): 2227–41.
Yumitri, Violla, Raja Adri Satriawan Surya, and Arumega Zarefar. 2019. “Pengaruh Mekanisme Corprorate Governnce Terhadap Kinerja Perusahaan.” JAKK ( Jurnal Akuntans Dan Keuangan Kontemporer) 2 (2): 2623–2596. https://doi.org/10.46975/aliansi.v13i1.15.
Alshetwi, Mohammed. 2017. “The Association Between Board Size, Independence and Firm Performance: Evidence from Saudi Arabia.” Global Journal of Management and Business Research: D Ccounting and Auditing 17 (1): 17–28.
Anggreni, Maretha Kris Dwi, and Robiyanto. 2021. “Pengaruh Struktur Modal Dan Strukture Kepemilikan Terhadap Kinerja Perusahaan Dengan Corporate Governance Sebagai Variabel Moderasi.” Jurnal Ekonomi Bisnis Dan Kewirausahaan (JEBIK) 10 (2): 100–120.
Balagobei, Saseela. 2018. “Corporate Governance and Firm Performance: Empirical Evidence from Emerging Market.” Asian Economic and Financial Review 8 (12): 1415–21. https://doi.org/10.18488/journal.aefr.2018.812.1415.1421.
Buwana, Muhammad Akbar Langlang, and Siti Nursyamsiah. 2018. “Analisis Implementasi Inovasi Terbuka : Peran Kerjasama Eksternal Terhadap Inovasi Produk Dan Kinerja Perusahaan (Studi Empiris Pada Usaha Kecil Dan Menengah (UKM) Batik Di Yogyakarta).” Jurnal Manajemen Dan Bisnis Indonesia 6 (1): 45–64. https://doi.org/10.31843/jmbi.v6i1.182.
Ellen, Ellen, and Kartika Nuringsih. 2020. “Pengaruh Struktur Kepemilikan, Keputusan Keuangan Dan Risiko Bisnis Terhadap Kinerja Perusahaan.” Jurnal Manajerial Dan Kewirausahaan 2 (2): 417. https://doi.org/10.24912/jmk.v2i2.7935.
Fajarwati, Elisa, and Rini Setyo Witiastuti. 2022. “Board of Directors Structure and Firm Performance: Evidence from Indonesia and Malaysia.” Management Analysis Journal 11 (1): 8–21. https://doi.org/10.15294/maj.v11i1.51672.
Fatmawati, Ikha, and Ceacilia Srimindarti. 2022. “Pengaruh Struktur Aktiva, Profitabilitas Dan Struktur Modal Terhadap Kinerja Perusahaan.” JIMEA | Jurnal Ilmiah MEA (Manajemen, Ekonomi, Dan Akuntansi 6 (1): 2621–5306.
Gonzales-bustos, Juan Pablo, Ana Beatriz Hern, and Xiaoni Li. 2020. “Board Effects on Innovation in Family and Non-Family Business.” Journal Heliyon 6 (July). https://doi.org/10.1016/j.heliyon.2020.e04980.
Gulzar, Ishfaq, and S M Imamul Haque. 2020. “Corporate Governance and Firm Performance in Indian Textile Companies : Evidence from NSE 500.” Indian Journal of Corporate Governance, 1–17. https://doi.org/10.1177/0974686220966809.
Hasina, Zahwaril, and Yustrida Bernawati. 2021. “Gender on Board and the Impact to Firm Performance through Innovation as Mediating Variable: Evidence from Indonesian Non-Financial Firms.” Jurnal Keuangan Dan Perbankan 25 (2): 400–414. https://doi.org/10.26905/jkdp.v25i2.5462.
Kamajaya, I Wayan Diva Pradita, and I.g.a.m Asri Dwija Putri. 2019. “Pengaruh Pertumbuhan Perusahaan, Kepemilikan Manajerial Dan Kebijakan Dividen Pada Kinerja Perusahaan Manufaktur Di BEI.” E-Jurnal Akuntansi Universitas Udayana 26 (2): 997–1021.
Kijkasiwat, P, A Hussain, U Nisar, and ... 2023. “The Mediating Effect of Innovation On The Relationship Between Corporate Governance and Firm Performance: Evidence From Developed And Developing Countries.” Asian Academy of Management Journal. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4324353.
Kijkasiwat, Ploypailin, and Pongsutti Phuensane. 2020. “Innovation and Firm Performance: The Moderating and Mediating Roles of Firm Size and Small and Medium Enterprise Finance.” Journal of Risk and Financial Management 13 (5). https://doi.org/10.3390/jrfm13050097.
Lee, Ryeowon, Jong Ho Lee, and Tony C. Garrett. 2019. “Synergy Effects of Innovation on Firm Performance.” Journal of Business Research 99 (August): 507–15. https://doi.org/10.1016/j.jbusres.2017.08.032.
Miao, Miao, Muhammad Irfan Khan, Saghir Pervaiz Ghauri, and Syed Imran Zaman. 2023. “The Effect of Corporate Governance on Firm Performance: Perspectives from an Emerging Market.” Economic Research-Ekonomska Istrazivanja 36 (3). https://doi.org/10.1080/1331677X.2023.2277275.
Mishra, Supriti. 2023. “Do Independent Directors Improve Firm Performance? Evidence from India.” Global Business Review 24 (5): 1092–1110. https://doi.org/10.1177/0972150920917310.
Muslih, Mochamad, and Intan Hartati. 2022. “Pengaruh Tata Kelola Perusahaan Dan Ukuran Perusahaan Terhadap Kinerja Perusahaan Lq45 Di Bursa Efek Indonesia (Bei).” Jurnal Kewirausahaan, Akuntansi Dan Manajemen Tri Bisnis 4 (1): 165–80. https://doi.org/10.59806/tribisnis.v4i1.155.
Nawaz Khan, Sajjad, Rai Imtiaz Hussain, Shafique Ur-Rehman, Muhammad Qasim Maqbool, Engku Ismail Engku Ali, and Muhammad Numan. 2019. “The Mediating Role of Innovation between Corporate Governance and Organizational Performance: Moderating Role of Innovative Culture in Pakistan Textile Sector.” Cogent Business and Management 6 (1): 1–23. https://doi.org/10.1080/23311975.2019.1631018.
Perangin-Angin, Chindy Pebrika, Mayla Khoiriyah, and Raja Adri Satriawan. 2023. “Pengaruh Karakteristik Komite Audit Terhadap Kinerja Perusahaan.” Jurnal Kajian Akuntansi Dan Bisnis Terkini 4 (2): 345–55.
Pfeffer, Jeffrey. 1972. “Size and Composition of Corporate Boards of Directors: The Organization and Its Environment.” Corporate Governance: Values, Ethics and Leadership 17 (2): 53–64. https://doi.org/10.2307/2393956.
Pondrinal, Muhammad, Rozi Destian, Hanna Pratiwi, Desi Ilona, Program Studi Akuntansi, and Fakultas Ekonomi. 2022. “Pengaruh Good Corporate Governance Terhadap Innovation Performance The Influence of Good Corporate Governance on Innovation Performance.” Jurnal Akuntansi Dan Bisnis 8 (1): 1–8. https://doi.org/10.31289/jab.v8i1.5424.
Riyadh, Hosam Alden, Eko Ganis Sukoharsono, and Salsabila Aisyah Alfaiza. 2019. “The Impact of Corporate Social Responsibility Disclosure and Board Characteristics on Corporate Performance.” Cogent Business and Management 6 (1). https://doi.org/10.1080/23311975.2019.1647917.
Sarpong-Danquah, Beatrice, Kwasi Oko-Bensa-Agyekum, and Emmanuel Opoku. 2022. “Corporate Governance and the Performance of Manufacturing Firms in Ghana: Does Ownership Structure Matter?” Cogent Business and Management 9 (1). https://doi.org/10.1080/23311975.2022.2101323.
Setyowati, Jihaan Aatikah Almaasi, and Endang Dwi Retnani. 2021. “Pengaruh Kinerja Keuangan Dan Ukuran Perusahaan Terhadap Pertumbuhan Laba Perusahaan Farmasi.” Jurnal Ilmu Dan Riset Akuntansi 12: 2088–2106.
Sierra-morán, Johana, Laura Cabeza-garcía, Nuria González-álvarez, and Juan Botella. 2021. “The Board of Directors and Firm Innovation : A Meta-Analytical Review.” Business Research Quarterly. https://doi.org/10.1177/23409444211039856.
Sierra-Morán, Johana, Laura Cabeza-García, Nuria González-Álvarez, and Juan Botella. 2021. “The Board of Directors and Firm Innovation: A Meta-Analytical Review.” BRQ Business Research Quarterly. https://doi.org/10.1177/23409444211039856.
Sumartini, Emi. 2020. “Pengaruh Struktur Modal , Ukuran Perusahaan Dan Pendidikan Dewan Komisaris Terhadap Kinerja Perusahaan Manufaktur Di Bursa Efek Indonesia.” Jurnal Dinamika Ekonomi Dan Bisnis 17 (02): 143–49.
Supriyanto, and Janice Soe. 2021. “Analisa Pengaruh Tata Kelola Perusaahaan Dan Struktur Modal Terhadap Kinerja Persahaan Di Bursa Efek Indonesia Tahun 2016-2020.” JIMEA | Jurnal Ilmiah MEA (Manajemen, Ekonomi, Dan Akuntansi) 5 (3).
Timorria, Ilm Fathimah. 2022. “Laba Garudafood (GOOD) Naik 67,48 Persen Sepanjang 2021.” Bisnis.Com. 2022. https://market.bisnis.com/read/20220307/192/1507714/laba-garudafood-good-naik-6748-persen-sepanjang-2021#:~:text=Laba Garudafood (GOOD) naik dari,Rp424%2C86 miliar tahun 2021.&text=Bisnis.com%2C JAKARTA — Emiten,kenaikan laba signifikan pada 2021.
Tung, Le Thanh, and Quan Minh Quoc Binh. 2021. “The Impact of R&D Expenditure on Firm Performance in Emerging Markets: Evidence from the Vietnamese Listed Companies.” Asian Journal of Technology Innovation 30 (2): 447–65. https://doi.org/10.1080/19761597.2021.1897470.
Yopie, Santi, and Desiani. 2021. “Pengaruh Kinerja Perusahaan Keluarga Dengan Gender, Kepemilikan Manajerial, Kepemilikan Keluarga, Board Characteristic, Umur Perusahaan, Ukuran Perusahaan Dan Sektor Bisnis Perusahaan.” JIMEA | Jurnal Ilmiah MEA (Manajemen, Ekonomi, Dan Akuntansi) 5 (3): 2227–41.
Yumitri, Violla, Raja Adri Satriawan Surya, and Arumega Zarefar. 2019. “Pengaruh Mekanisme Corprorate Governnce Terhadap Kinerja Perusahaan.” JAKK ( Jurnal Akuntans Dan Keuangan Kontemporer) 2 (2): 2623–2596. https://doi.org/10.46975/aliansi.v13i1.15.
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