Contingency Variable Interaction Model: Implementation on Credit Risk Management System of the Commercial Banks In Indonesia

Research on credit risk management systems in Indonesia commercial banks beyond moderating contingency variables such as competitive strategy, corporate culture, external environment and organizational structure has never been done. The research objectives are: (1) to analyze the influence of contingency variables (competitive strategy, corporate culture, external environment and organizational structure) on the bank's credit risk management system in Indonesia, (2) to analyzed the effect of the credit risk management system on the performance of banks in Indonesia, (3) to analyze between contingency moderating variables (competitive strategy, corporate culture, external environment and organizational structure) and credit risk management system on organizational performance of commercial banks in Indonesia and (4) to analyze consistency of commercial banks performance between primary and secondary data years 2004 2008 in Indonesia. Secondary and primary data collection is done through a survey of 97 commercial banks in Indonesia as a unit of study samples. A set of questionnaires as primary data collection instruments were distributed to the directors, managers and heads of commercial banks on credit division as research respondent and secondary data analysis of the financial statements of Commercial Banks operations in the period 2004 to 2008 was obtained from Bank Indonesia. Furthermore, statistically processed data, whether a descriptive analysis and verification analysis were conducted. Multiple regression analysis and T test are used to test hypotheses. The research results prove that: (1) competitive strategy, corporate culture and organizational structure affect the bank's credit risk management system, (2) credit risk management systems affect the performance of commercial banks, (3) competitive strategy, corporate culture and organizational structure to strengthen moderation credit risk management system on the performance of commercial banks and the most powerful moderation is the corporate culture and (4) The performance of commercial banks in Indonesia as a whole is good enough and the line with financial performance from Annual Report, Bank of Indonesia, while the best is State of Commercial Bank (Persero). In other words, the performance of state commercial banks (Persero) is better relative than the performance of other competitors of commercial banks.