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Differentiation Strategy and Cost Leadership Strategy: Their Contribution to Achieving Sustainable Financial Performance

In: Digital Economy and New Value Creation

Author

Listed:
  • Juniarti Juniarti

    (Petra Christian University)

  • Clarissa Simanjaya

    (Petra Christian University)

  • Marcella Chandra

    (Petra Christian University)

  • Zenia Estella Soesetyo

    (Petra Christian University)

Abstract

This research aims to study the influence of differentiation and cost-leadership strategy on sustainable financial performance with innovation as the moderator variable. This research uses the last 5 years financial report of go-public companies in South-East Asia, with a total of 250 firm years. In the early stage of the research, the companies are grouped into their respective strategy. From that grouping, each strategy is then measured. The researcher uses 5 measurements to test the strategies, 2 for differentiation strategy and 3 for cost-leadership strategy. The finding of this research is that differentiation positively influences sustainable financial performance, with innovation as the moderator variable. However, these findings are not proved in cost leadership strategy. Innovation shows partially influences to the achievement of sustainable financial performance. This research contributes to adding the innovation factor that strengthens the relationship between the successes of a strategy with the sustainable financial performance so that the result can be more consistent.

Suggested Citation

  • Juniarti Juniarti & Clarissa Simanjaya & Marcella Chandra & Zenia Estella Soesetyo, 2022. "Differentiation Strategy and Cost Leadership Strategy: Their Contribution to Achieving Sustainable Financial Performance," Springer Proceedings in Business and Economics, in: Mihail Busu (ed.), Digital Economy and New Value Creation, pages 197-219, Springer.
  • Handle: RePEc:spr:prbchp:978-3-031-07265-9_16
    DOI: 10.1007/978-3-031-07265-9_16
    as

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