The influence of company's external and internal factors to financial performance and company competitiveness on consumer good companies industry

Authors

  • Ahmad Nur Budi Utama Faculty of Economics and Business, Universitas Jambi, Indonesia
  • Syamsurijal Tan Faculty of Economics and Business, Universitas Jambi, Indonesia
  • Tona Aurora Lubis Faculty of Economics and Business, Universitas Jambi, Indonesia
  • Asep Machpuddin Faculty of Economics and Business, Universitas Jambi, Indonesia

DOI:

https://doi.org/10.22437/ppd.v8i4.10703

Keywords:

Company competitiveness, External factor, Financial Performance, Internal factor

Abstract

The purpose of this study is to predict the influence model of external and internal factors of a company, starting a company's financial performance on the competitiveness of companies in the Consumer Goods Industry Sector on the Indonesia Stock Exchange. The sample of this research is 35 companies in the Consumer Goods Industry Sector on the Indonesia Stock Exchange during the period of 2016 to 2018. This research is used SEM (Structural Equation Modeling) based on component or variance based analysis known as Partial Least Square (PLS). The results of this study concluded that external factors affect the company's financial performance and company competitiveness. Internal factors also affect the company's financial performance and competitiveness but the influence of  both external factors and internal factors respectively are not able to mediate the financial performance of the company's competitiveness

Downloads

Download data is not yet available.

References

Aloui, M. & Jarboui, A. (2017). The effects of corporate governance on the stock return volatility: During the financial crisis. International Journal of Law and Management, 60(2), 478 - 495

Anwaar, M. (2016). Impact of Firms’ Performance on Stock Returns (Evidence from Listed Companies of FTSE-100 Index London, UK). Global Journal of Management and Business Research,16(1), 30 - 39

Békés, G., Horváth, A. & Sápi, Z. (2016). Flood Risk and Housing Prices: Evidence from Hungary. IEHAS Discussion Papers. Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences

Bonn, I., Yoshikawa, T. & Phan, P.H. (2004). Effects of Board Structure on Firm Performance: A Comparison Between Japan and Australia. Asian Business & Management, 3, 105-125

Egbunike, C.F. &. Okerekeoti, C.U. (2018). Macroeconomic factors, firm characteristics and financial performance, A study of selected quoted manufacturing firms in Nigeria. Asian Journal of Accounting Research, 3(2), 142-168

Obeng-Krampah, D.K. (2018). The Impact Of Macroeconomic Factors On Firm Performance, [Master’s Thesis] The University Of Ghana

Ghozali, I. (2008). Structural Equation Modeling Metode Alternatif dengan Partial Least Square. Semarang: BP-Undip.

Hamel, G & Praland, C K. (1995). Kompetisi Masa Depan. Jakarta : Bina Rupa Aksara

He, Zhen-Xia., Shen, Wen-Xing., Li, Qin-bin., Xu, Shi-Chun., Zaho, Bin., Long, & Ru-Yin. (2018). Investigating external and internal pressures on corporate environmental behavior in papermaking enterprises of China. Journal of Cleaner Production, 172. 1193 - 1211

Hsiao, Kuo-Lun., Lin, J.C., Xiang-Ying W., His-Peng Lu., & Hueiju Yu. (2010). Antecedents and Consequences of Trust in Online Product Recommendations. Online Information Review, 33(6), 935-953.

Juma, M. (2014). The Effect Of Macro-Economic Variables On Growth In Real Estate Investment In Kenya, [Master’s Thesis]. School Of Business, University Of Nairobi

Khan, Z., Khan, S., Rukh, L. & Imdadullah. (2012). Impact of Interest Rate, Exchange Rate and Inflation on Stock Returns Of Kse 100 Index. Int.J.Eco.Res, 3(5), 142-155,

Liang, Yan-Qing., Zhang, Shu-Lin., & Cui, Yi. (2015). Market Profitability Factors Exploration after the Stock Holding Event of Listed Companies Executives Evidence from China's Stock Market. International conference on management engineering and management innovation (ICMEMI), January 2015.

Morgan, R.M. & Hunt, S.D. (2004). The CommitmentTrust Theory of Relationship Marketing. Journal of Marketing, 58 (3), 20.

Porter, M. (1980). Competitive Strategy, Techniques for Analyzing Industries and Competitors. New York: The Free Press.

Porter, M. (2008). Strategi Bersaing (Competitive Strategy) Tangerang: Karisma Publishing Group.

Prempeh. (2016). Macroeconomic Variables and Stock Price Volatility in Ghana Munich Personal RePEc Archive, Available at https://mpra.ub.uni-muenchen.de/70545/ MPRA Paper No. 70545

Rivera, J. M., Muñoz, M. J., & Moneva, J. M. (2017). Revisiting the Relationship Between Corporate Stakeholder Commitment And Social And Financial Performance. Sustainable Development, 25(6), 482 - 494

Saedi, P., Sofian S., Rasid, S.Z.A, Saeid, S.P. (2012). The Role of Chief Risk Officer in Adoption and Implementation of Enterprise Risk Management. International Research Journal of Finance and Economics, 88, 118-123.

Sheikh, N. A., Wang, Z., & Khan, S. (2013). The Impact of Internal Attributes of Corporate Governance on Firm Performance: Evidance From Pakistan. International Journal of Commerce and Management, 23(1), 38-55.

Solimun. (2011). Analisis Variabel moderasi dan Mediasi. Malang: Program Studi Statistika FMIPA Universitas Brawijaya.

Spence, M. (1973). Job Market Signaling. The Quarterly Journal of Economics, 87(3), 355-374.

Teeratansirikool, L., Siengthai, S. Badir, Y., & Charoenngam, C. (2013). Competitive Strategies and Firms Performance: The Mediating Role of Performance Measurement. International Journal of Productivity and Performance Management, 63(1&2), 168 - 184

Wu, Wei. (2009). Board Composition And Firm Performance: A Quantitative Study On Chinese Listed Companies. [Master’s Thesis] Umea School of Business

Zhaohua, Deng., Yaobin, Lu., Kwok, Kee.Wei., & Jinlong, Zhang. (2010). Understanding Customer Satisfaction and Loyalty: An Empirical Study of Mobile Instant Messages in China. International Journal of Information Management, 30(4), 289-300.

Downloads

Published

2020-11-07

How to Cite

Utama, A. N. B., Tan, S., Lubis, T. A., & Machpuddin, A. (2020). The influence of company’s external and internal factors to financial performance and company competitiveness on consumer good companies industry . Jurnal Perspektif Pembiayaan Dan Pembangunan Daerah, 8(4), 405 - 414. https://doi.org/10.22437/ppd.v8i4.10703