The Influence of External Environtmental Forces and Strategic Orientation on Value Creation and the Implication on Business Performance

The growth of business performance of courier service industry in Indonesia in the last five years is likely to stagnate. The percentage of target achievement of sales performance is still hard to achieve and profit growth is relatively small. This study aims to explore the data and information on External Environmental Forces and Strategic Orientation on Value Creation and their implication on Business Performance of courier service industry in Indonesia. The nature of this research is verification. The unit of analysis is the courier service industry, and a sample of 72 courier companies from various regions in Indonesia, which the branch office in Jakarta. Time horizon is cross-sectional, where the research is done at a certain time. The analysis is done by using the model verification Partial Least Square (PLS). The findings reveal that strategic orientation has a significant influence on value creation, while External Environmental Forces do not have a significant influence on value creation. Strategic orientation has a greater influence rather than External Environmental Forces in influencing business performance. Value creation has a greatest influence on business performance.