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Superior business performance is determined by the ability of business units to create competitive advantage. However, the rapid development of technology and market make uncertain condition on business environment. This condition is known as environmental turbulence. This research aims to investigate the impact of environmental turbulence and dynamic capabilities on business unit performance in communication industry in Indonesia. The methods used were descriptive survey method and explanatory survey method. The population was telecommunication operator business unit in Indonesia. The data was taken from The Ministry of Communication and Information. The result showed that the direct impact of environmental turbulence on business unit performance was 0.104. The direct impact of dynamic capabilities on business unit performance was 0.220. Meanwhile, the score of (impact from unknown variables) was 0.214. This result implied that: 1) environmental turbulence had more significant influence on business unit performance compared to dynamic capabilities and 2) dynamic capability was the key factor in improving business unit performance. Keywords—Environmental Turbulence; Dynamic Capabilities; Business Unit Performance

The Impact of Environmental Turbulence and Dynamic Capabilities Toward Business Unit Performance (Case Study at Communication Organization Industries)