THE INFLUENCE OF BUSINESS ORIENTATION AND PORTFOLIO DIVERSIFICATION ON THE VALUE CREATION AND ITS IMPLICATION ON BUSINESS PERFORMANCE (A STUDY IN THE NON-AERO AIRPORT SERVICE INDUSTRY IN INDONESIA) Virda Dimas Ekaputra, Agus Rahayu, Lili Adi Wibowo, Puspo Dewi Dirgantari
Universitas Pendidikan Indonesia
Abstract
This study aims to examine the effect of business orientation and portfolio diversification on the value creation and the implication on the business performance of non-aero airport service industry in Indonesia.
The study is conducted using a quantitative research approach. The observation is conducted on a cross section/one-shot time horizon, in 2023. The unit of analysis in this study is all airports in Indonesia, and 25 airports are taken as sample with consideration that the airports have sufficient complexity and have served commercial flights. Partial Least Square (PLS) is using to test the hypothesis.
The results of hypothesis testing show that portfolio diversification has a dominant influence on value creation than business orientation- value creation has a significant effect on business performance- as well as value creation mediates the influence of business orientation and portfolio diversification on business performance.
The results of this study propose a managerial implications for the management of non-aero airport service industry companies in Indonesia to develop value creation based on portfolio diversification and business orientation to enhance their business performance.
Keywords: business orientation, portfolio diversification, value creation, business performance
