The Influence of Business Value Creation to Improve Company Performance of Fertilizer Industry in Indonesia
Indarto Pamoengkas

Doctorate Program of Management Science, Faculty of Economics & Business, Padjadjaran University, 40132, Indonesia

Abstract

Total sales of PT Pupuk Indonesia (Persero) (PTPI) decreased by 1.8% from 2018 sales. Such problem have also experienced by Small or medium scale fertilizer companies which have been producing organic fertilizers in improving company performance. This condition is thought to be related to the problem of creating business value. This study aims to examine the effect of business value creation on the company performance of fertilizer indutry in Indonesia. This study used a quantitative research approach. A census was carried out for all of 55 fertilizer producers in Indonesia . PLS was used to measure hypothesis testing. Business value creation has an impact on the performance of fertilizer companies in Indonesia. Business domain gives the highest influence, followed by benefits and partnership. The increase in the performance of fertilizer companies is more dominant to be reached if the company is able to strengthen its business domain. This finding has implications for the management of fertilizer producing companies in Indonesia that in order to improve company performance, companies need to increase their business value creation through developing partnerships, business domains, and customer benefits.

Keywords: business value creation- company performance- fertilizer

Topic: Economics