Strategies affecting sustainable financial performance (A case study on southeast asian companies

This study aims to find out the effect of cost leadership and differentiation
strategies on sustainable financial performance, including which strategy
has a more dominant effect. Sustainable financial performance is financial
performance that can be achieved and enjoyed into the future, not just for
temporary in a certain period. The sample includes public companies in
the Southeast Asia region consisting of 395 companies during the period
2107-2020, with a total 1,580 observations. This study uses Struc-tural
Equation Modeling to analyze the data. The test results show that the cost
lead-ership strategy has no effect on sustainable financial performance. In
contrast, the differentiation strategy has a positive and significant effect on
sustainable financial performance. The role of innovation is very important
in achieving sustainability. This study proves that innovation moderates
the effect of the two strategies on sustainable financial performance. This
study failed to prove which strategy has a more dominant effect due to the
different results of the effect of the two strategies on sustainable fi-nancial
performance.