The Role of CSR and Partnership Strategy in Improving Loyalty of PT Telkom Foster Partners in Indonesia

Abstract

. This study aims to look into the impact of CSR and partnership strategy on PT Telkom promote partner loyalty. The quantitative research approach employed is causality research, which will be based on the study objectives. Small and Medium Enterprises (UKM) that have received PT's Corporate Social Responsibility (CSR) program are the unit of analysis. Indonesian telecommunications company Telkom. Meanwhile, the owners and managers of the UKM company are the units of observation. In Indonesia, the population is made up entirely of SMEs whom PT Telkom helps. Therefore, SMEs that PT has directed are the prerequisites to be used as example units. Telkom has a two-year minimum contract. A total of 200 SMEs were randomly selected and distributed over seven regions, with proportional allocation based on the population of each region (Simple Random Sampling). Using Structural Equation Modeling, this analysis will address the research objectives (SEM). The findings of this study show that CSR and partnership strategy impact PT Telkom cultivating partners' loyalty. The partnership strategy more dominantly forms partner loyalty than CSR. Based on this result, it is recommended to manage PT Telkom, who manages the partnership program to develop a partnership strategy: trust, independence, agreement, commitment, and coordination. Besides, it is also necessary to develop CSR in development, utilization, distribution, and impact.