Examining the Influence of Organizational Culture and Asset Management on the Valuation of the Diving Industry in Indonesia

Abstract

Background: In Indonesia, the diving industry has experienced a surge in PADI certifications due to the multitude of diving locations. However, the sector grapples with instability. Existing research has underscored the significance of organizational culture and company assets in business valuation, revealing specific issues in these domains. This study endeavors to assess their impact on the valuation of the diving industry in Indonesia. Objective: Our primary objective is to investigate how organizational culture and company assets influence the valuation of diving businesses in Indonesia. We aim to provide actionable insights to industry management, presenting a model for enhancing valuations through the development of corporate assets and organizational culture. Method: We adopted a quantitative research approach, focusing on dive operators as our unit of analysis and the management of these operators as our observation unit. Our sample consisted of 50 respondents, and we collected primary data through questionnaires. This research employed a cross-sectional design and used causality research techniques, employing the Partial Least Square (PLS) method. Our Findings: Our research substantiates the influence of both organizational culture and company assets on the valuation of Indonesia's diving industry. Notably, the impact of company assets surpasses that of organizational culture in elevating business valuations. This discovery offers a promising alternative for industry management, emphasizing the development of tangible assets and organizational stability and control for success in this dynamic sector. Conclusion: Our study underscores the importance of prioritizing the development of tangible company assets in the diving industry in Indonesia. Additionally, it highlights the need for management to focus on enhancing organizational stability and control within the organization as a strategy for improving business valuations.