Business Unit Management Performance Analysis in PT. Perkebunan Nusantara II Medan-North Sumatra

Abstract

The goal of this research was to look at how market orientation and corporate innovation affected the success of PT Perkebunan Nusantara II, a state-owned corporation. PT Perkebunan Nusantara II is currently facing a challenge in achieving the Health Assessment Level of State-Owned Enterprises in categories B and BB (Unhealthy). Digital change acts as a mediator, while competitive advantage acts as a moderator. The study population consists of business unit leaders from Top Management, Middle Management, and Lower Management. A total of 255 people were included in the study, one from each of the 25 business divisions. The sample strategies employed were Proportional Cluster Sampling and Stratified Random Sampling. SmartPLS as an analytical tool for structural equation modeling. With a total effect coefficient of 0.547 and 0.310, the findings demonstrate that market orientation and corporate innovation have a positive and significant impact on competitive advantage. With a total coefficient of influence of 0.343 and 0.108, market orientation and corporate innovation have a positive but not significant impact on business unit performance. With a total coefficient of influence of 0.570, competitive advantage has a positive and significant impact on the performance of business units. With a total influence coefficient of 0.090, digital transformation is able to reduce the impact of market orientation on business unit performance. With a total effect coefficient of-0.087, digital transformation is unable to control the impact of the company's innovation on business unit performance. At PT Perkebunan Nusantara II in Medan, North Sumatra, competitive advantage can mediate the impact of market orientation on business unit performance with an influence coefficient of 0.311, while corporate innovation through competitive advantage has a positive and significant impact on business unit performance with an influence coefficient of 0.177.