State-owned enterprises (SOEs), including state-owned banks (SOBs), play a crucial role in economic development and public welfare. Indonesian SOBs face a volatile, uncertain, complex, and ambiguous (VUCA) environment, characterized by unpredictable customer needs, intense competition, and technological change. This necessitates adaptability and flexibility from branch offices to maintain profitability and sustainability. Branch managers are central to this adaptation, engaging in boundary-spanning activities (BSAs) – connecting the branch with its external environment – and resource orchestration (RO) – effectively combining resources to achieve performance goals. Further complicating the matter, branch managers often experience intra-individual goal conflict, balancing profit generation with broader social and developmental responsibilities mandated by the government. This study examines the impact of perceived environmental uncertainty (PEUN) and intra-individual goal conflict (GCFL) on BSAs and RO, ultimately influencing perceived organizational performance (PPER) of the branch offices.

Existing research highlights the link between PEUN and BSAs, with some studies indicating a positive relationship and others suggesting a negative one depending on managerial capabilities. Similarly, the literature shows a connection between PEUN and RO, with higher uncertainty leading to increased RO in some contexts. The relationship between RO and PPER is largely positive, with RO acting as a mediator or moderator in various organizational contexts. However, direct relationships between GCFL, BSAs, and RO remain largely unexplored, with most studies focusing on indirect impacts through mediating variables. This research aims to fill these gaps by investigating the direct effects of GCFL on BSAs and RO, and the direct effect of BSAs on RO.

This quantitative study employed covariance-based structural equation modeling (SEM) to analyze data collected from 186 branch managers of a major Indonesian SOB. The sample represents 92.54% of the bank's 201 full-service branch offices across Indonesia. Data was gathered using a questionnaire with a 6-point Likert scale, measuring PEUN (three dimensions, ten indicators), GCFL (three dimensions, ten indicators), BSAs (five dimensions, nineteen indicators), RO (three dimensions, thirteen indicators), and PPER (two dimensions, eleven indicators). To address the issue of a small sample size relative to the number of indicators, a parceling method was used to aggregate indicators into parcels, reducing the number of observed variables while maintaining the reliability and validity of the measurement model. The measurement model was evaluated for validity and reliability using standard thresholds for loading factors, Cronbach's alpha, composite reliability, and variance extracted. The structural model was then tested to assess the hypothesized relationships between the latent variables, using t-values to determine statistical significance at a 95% confidence level (one-tailed test, t ≥ 1.65). A pretest was conducted to refine the questionnaire before data collection.

The analysis revealed several key findings. First, PEUN positively and significantly influenced both BSAs and RO. Second, contrary to expectations, GCFL did not negatively influence BSAs; instead, a positive and significant relationship was observed. However, GCFL showed no significant impact on RO. Third, BSAs had a positive and significant effect on RO. Fourth, RO had a positive and significant relationship with PPER. The path with the highest loading factors was PEUN → BSAs → RO → PPER. The positive relationship between GCFL and BSAs is explained by the cultural context of Indonesia, characterized by high power distance, low individualism, low masculinity, and low indulgence. These cultural values may encourage branch managers to prioritize workplace harmony and obedience to superiors even in the face of goal conflict, leading to increased efforts in boundary spanning activities.

The findings contribute to the understanding of how environmental uncertainty and internal goal conflicts influence managerial actions in a specific cultural context. The positive relationship between PEUN and both BSAs and RO confirms that environmental uncertainty encourages managers to actively engage with their surroundings and optimize resource usage to achieve better performance. The unexpected positive correlation between GCFL and BSAs suggests that instead of hindering performance, goal conflict in this context may lead managers to proactively engage with the environment to find support and resources to reconcile competing goals. The direct and positive link between BSAs and RO is a novel finding, demonstrating the crucial role of external engagement in optimizing internal resource use. The strong relationship between RO and PPER reinforces the importance of effective resource management for achieving superior organizational performance.

This study confirms existing literature on the positive effects of PEUN on BSAs and RO, and the positive impact of RO on PPER. It introduces novel findings regarding the direct positive relationship between BSAs and RO, and the unexpected positive effect of GCFL on BSAs in the context of Indonesian culture. Managerial implications include developing branch managers' boundary-spanning and resource orchestration skills, fostering non-hierarchical communication, and delegating more authority to branch managers. Future research could explore other external and internal environmental variables, intervening variables, different respondent groups, and other SOEs or banking contexts.

The study's limitations include the use of only PEUN and GCFL as environmental and internal variables, and the focus on branch managers as respondents. The reliance on self-reported data and the cross-sectional nature of the study also limit the generalizability of findings. Future research should consider expanding the scope of variables, using longitudinal data, incorporating other methodological approaches, and replicating the study in different contexts.