THE EFFECT OF ENVIRONMENTAL COSTS AND PRODUCT QUALITY ON COMPETITIVE ADVANTAGE THROUGH FINANCIAL PERFORMANCE AS A MEDIATING VARIABLE (STUDY ON BAKERY AND PASTRY PRODUCT INDUSTRY IN PALU CITY)

Abstract

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