THE EFFECT OF ENVIRONMENTAL COSTS AND PRODUCT QUALITY ON COMPETITIVE ADVANTAGE THROUGH FINANCIAL PERFORMANCE AS A MEDIATING VARIABLE

Abstract

This research aims to determine and analyze the influence of each variable on environmental costs, product quality, competitive advantage and financial performance. This research uses quantitative methods, explanatory research type. The sample for this research was 49 respondents. Data collection was carried out using questionnaires, literature studies and interviews. Data collection in this research is primary and secondary data. Data analysis used in this research is in the form of convergent, discriminant, reliability tests, path equality tests and hypothesis tests using partial least squares. The research results show that environmental costs have a positive and significant effect on competitive advantage. Product quality has a positive and significant effect on competitive advantage. This shows that product quality is a benchmark for the competitive advantage of competing companies. Competitive advantage has a positive and significant effect on financial performance. Environmental costs have a positive and significant effect on financial performance. Product quality has a positive and significant effect on financial performance. This means that the better the product quality of the industry you own, the better the financial pattern of the industrial company. Environmental costs through financial performance have a positive value and significantly influence competitive advantage, the better managing environmental performance (costs) can influence the level of industrial financial performance so that it can create a competitive advantage in market share. Product quality through financial performance has a significant influence on competitive advantage, the better processing of product quality from the industry affects the level of financial performance that is owned so that it can compete in a superior and good industry.