The Effect of Business Partnership and Competitive Strategy in Improving Rural Bankperformance in West Java The Effect of Business Partnership and Competitive Strategy in Improving Rural Bank performance in West Java AV Rahajeng Widyarsih1, Sucherly2 and Umi Kaltum3 1 Doctoral Program in Business Management, Faculty of Economic and Business, Padjadjaran University, Lecturer of Perbanas Institute Jakarta, E-mail:
[email protected] 2 Doctoral Program in Business Management, Faculty of Economic and Business, Padjadjaran University 3 Doctoral Program in Business Management, Faculty of Economic and Business, Padjadjaran University Abstract: Although Rural Bank has a major role to boost the regional economy, but it’s contribution is still relatively small. Rural Bank has not been widely known by the public and has not been used by the government to support economic development in order to improve the welfare of the people, especially in rural areas. Although the development of the assets, the amount of savings, deposits and loans from the Rural Bank belonging to the Provincial Government of West Java and Banten is likely to increase, but not matched by a stable growth in operating income, which tend to fluctuate, so that shows the performance is not optimal. Similarly, private Rural Bank are generally also experienced performance that is not optimal. This study aimed to examine the effect of the partnership and competitive strategy toward the rural bank performance in West Java. Data were collected through questionnaires to 50 respondents and analyzed using PLS. The results showed that competitive strategy has a greater influence rather than business partnership on rural bank performance.