Accelerating Homestay Business Performance in Lake Toba: Transforming Entrepreneurial Competence into Sustainable Competitive Advantage

Abstract

Riko Fridolend Sianturi

Sustainable tourism in Lake Toba, a UNESCO Global Geopark, has shifted toward high-value, low-impact experiences by 2026. This study examines the factors influencing the business performance of homestays in tourist villages transitioning from agriculture to a service economy. Utilizing Structural Equation Modeling with a sample of 192 homestay owners, the research evaluates the impact of entrepreneurial orientation (EO) and marketing capacity of tourist villages (MCTV) on business performance (BP). It also analyzes sustainable competitive advantage (SCA) as a mediator and cultural values (CV) as a moderator. The results demonstrate that both entrepreneurial orientation and marketing capacity have positive and significant effects on homestay business performance. Sustainable competitive advantage successfully mediates the relationship between entrepreneurial orientation and business performance. Furthermore, cultural values serve as a significant moderator that strengthens the influence of marketing capacity on business performance, highlighting the vital synergy between Toba Batak hospitality and service innovation. These findings underscore the importance of embracing sustainability practices and leveraging dynamic capabilities to achieve environmental sustainability alongside profitability in a competitive tourism environment. The study provides practical insights for stakeholders to enhance competitiveness through collective marketing and proactive entrepreneurial strategies within Indonesia's "Super Priority" destinations.

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