To Sustain or not to Sustain: A Case Study of an Automotive Company in Adopting Technology
Diyah Ratna Fauziana1), Herbi Arfah Renaldi Sumitro2), Jhezel A. Franco3), Jocelyn Tan Zhe Lin4), Muhamad Ferdy Firmansyah5), Sylvia Sandyazmara Devi1), and Salsa Dilla1,a)

1School of Business, IPB University, Bogor, Indonesia
2International Centre for Education in Islamic Finance (INCEIF), Malaysia
3Iloilo Science and Technology University, Iloilo, Philippines
4Universiti Putra Malaysia, Selangor, Malaysia
5Universitas Siliwangi, Tasikmalaya, Indonesia

a)Corresponding author: salsadilla[at]apps.ipb.ac.id

Abstract

As the most prominent automotive manufacturer of 22 industrial companies of four or more wheeled vehicles in Indonesia, Toyota Astra Motor (TAM), the subsidiary of PT Astra International Tbk, is leading in the four-wheel vehicle market in Indonesia. Taking into consideration to COVID-19 pandemic, Astra^s strategy consolidation needs to be analysed to determine further initiatives. The relationship between Astra^s technology adoption and corporate sustainability, particularly in TAM will be analysed in this study. This study aims to identify the technology adoption in TAM using a TOE Framework, to analyse the business sustainability determinants, limited to financial performance using financial ratio and distress Z-Score model analysis, and level of customer satisfaction using a primary survey. The methods applied in this study are a combination of literature review and descriptive analysis by distributing customer satisfaction questionnaires to 218 respondents domiciled in Jabodetabek. The key finding is that TAM, an automotive manufacturer as a subsidiary of Astra, had adopted some technologies which may make a positive impact on their sustainability in the future. This claim is reinforced by the result of a short-term financial analysis conducted in this study.

Keywords: sustainability, COVID-19, automotive manufacturer

Topic: Social Science and Humanities