Financial Capability and Strategic Competitiveness in ASEAN State-Owned Enterprises: Investigating the Moderating Role of Financial Resilience

DOI

10.2991/978-94-6463-994-0_4How to use a DOI?

Keywords

Financial Capability; Financial Resilience; Strategic Competitiveness; Asean State; Owned Enterprise

Abstract

This study investigates to prove the role of financial resilience in the relationship between financial capabilities and strategic competitiveness in State-Owned Enterprises (SOEs) in the ASEAN region. Based on the Resource-Based Theory framework, Dynamic Capability Theory, and Resilience Theory, financial capabilities are viewed as dynamic internal resources that enable companies to respond to changes, shocks, and market fluctuations to maintain competitive advantage. By using pooled data from 252 N samples from 60 SOEs in several ASEAN countries, a Multivariate General Linear Model (MGLM) with Multivariate Regression Analysis techniques has been used. The results of the study prove that financial capabilities proxied by reinvestment rate, cash flow, asset turnover, and size (control variables) have a significant positive effect on Return on Capital (ROIC). Meanwhile, operational efficiency (OER) and cash flow have a negative effect on ROIC. Furthermore, Capital expenditure (CAPEX) and OER have a positive effect on Enterprise Value to Revenue (EVR), and size as a control variable has a negative effect on EV. Financial Resilience (FR) has a significant negative effect on ROIC and has no effect on Enterprise Value. The moderating effect of FR occurs partially between Cash Flow Margin (CFM), OER on ROIC. Furthermore, FR partially moderates the relationship between CAPEX, OER on EVR. These findings indicate that financial resilience has a crucial role in surviving and adapting to financial shocks and is able to improve long-term and short-term strategic performance. This study provides theoretical contributions in expanding the understanding of Resource-Based Theory, Dynamic Capability Theory, and Resilience Theory in the context of state-owned enterprises (SOEs), as well as offering practical implications for policymakers and SOE managers in improving competitiveness amidst increasing economic uncertainty.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Betharia Efriani
AU  - Sulastri Sulastri
AU  - Isnurhadi Isnurhadi
AU  - Belinda Mora Siagian
PY  - 2026
DA  - 2026/02/23
TI  - Financial Capability and Strategic Competitiveness in ASEAN State-Owned Enterprises: Investigating the Moderating Role of Financial Resilience
BT  - Proceedings of the 24th Malaysia-Indonesia International Conference on Economics, Management, and Accounting (The 24th MIICEMA) in conjunction with The 9th Sriwijaya Economics, Accounting, and Business Conference (The 9th SEABC) (MIICEMA-SEABC 2025)
PB  - Atlantis Press
SP  - 34
EP  - 51
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-994-0_4
DO  - 10.2991/978-94-6463-994-0_4
ID  - Efriani2026
ER  -