Public RelationsUPNVJ - Covid-19 shocked the world when it was first declared a pandemic by the World Health Organization (WHO) in 2020. During the pandemic, many companies were hit hard and suffered huge losses, even going bankrupt.
However, there are also a number of companies that have survived the pandemic and have been able to recover as before.
According to Professor of Management Science, Faculty of Economics and Business, Prof. Dr. Prasetyo Hadi, SE, MM, the concept of business sustainability is one of the elements that makes a number of companies able to survive in a changing environment.
Business sustainability or firm sustainability refers to a company's ability to maintain good performance in the long term.
"We certainly hope that our business can progress and develop and be sustainable. So there is a concept of maintaining good performance in the long term by paying attention to economic, environmental and social dimensions," said Prasetyo.
The concept of business sustainability is related to ambidexterity. In the business world, ambidexterity is defined as a company's ability to balance exploration and exploitation. Companies are able to exploit existing competencies, and at the same time explore various new opportunities.
Apart from business sustainability and ambidexterity, the third factor that can make a company survive in an ever-changing environment is dynamic capability. This term refers to a company's ability to integrate, build and reconfigure internal and external competencies in the face of rapid environmental change.
Continuously Changing Environment
"Organizations that are able to integrate exploration and exploitation in a balanced manner through ambidexterity tend to have better performance. They can innovate effectively while maintaining operational efficiency, which in turn will increase business sustainability," said Prasetyo.
He added that internal factors such as culture, supportive leadership and flexible organizational structures, play an important role in supporting ambidexterity. Organizations that have a strong innovation culture are more likely to successfully integrate exploration and exploitation.
A final point, a dynamic business environment can impact an organization's ability to achieve ambidexterity. Organizations must be able to read market signals and adapt to changes in the external environment. Managing ambidexterity needs to be an integral part of an organization's strategic management.
"Ambidexterity is part of being able to mediate the roles of dynamic capability in producing business sustainability. So it is very necessary to be able to control an environment that continues to change, then read opportunities by predicting what will happen in the future ," said Prasetyo.