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

This research aims to study the influence of differentiation and costleadership 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.