Effect of business unit performance on company value

Abstract

Purpose: This research aims to examine the effect of business unit performance on the value of BUMD business units in West Java. Design/Methodology/Approach: The research was conducted using a quantitative approach. The unit of analysis in this study is the business unit of BUMD owned by West Java Province. The observation unit is the management of the business unit owned by the West Java Province BUMD. Questionnaires were distributed to 34 managers of the West Java Provincial BUMD business units. Findings: Business unit performance influences the value of the company. Resources provide the highest influence in increasing the value of the company, when compared to operation management and culture. Practical Implications: The research has implications for the management of BUMD business units in West Java where in order to increase the value of the company it can be done by increasing the ownership of resources supported by the development of operation management, and culture. Originality/Value: This research shows how to increase the value of the company by increasing the ownership of resources, supported by the development of operation management, and culture.