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
Highlights
Indonesia's Global Competitiveness Index in 2018 is in the 45th rank out of 140 countries
Based on previous exposure about the phenomenon and research gap, this study aims to predict the influence of company's external and internal factors to financial performance and company competitiveness on consumer good companies industry
The sample selection criteria are based on the considerations: 1) The research period in this study is from 2016 to 2018, which is listed on the Indonesia Stock Exchange; 2) Companies in the consumer goods industry sub-sector that have complete financial statements during the study period
Summary
Indonesia's Global Competitiveness Index in 2018 is in the 45th rank out of 140 countries. This ranking was released by the World Economic Forum (WEF) in 2018. Competitiveness according to WEF benchmarks was identified to 5 (five) dominant factors. On the macro side there are 3 (three) factors, namely: (a) the macro economic conditions are not conducive; (b) the poor quality of public institutions in carrying out their functions as facilitators and service centers; and (c) weak technology development policies in facilitating the need for increased productivity. At the micro or business level, 2 (two) prominent factors are: (a) low business efficiency at the level of company operations; and (b) the weak business competition climate
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