THE INFLUENCE OF CORPORATE SOCIAL RESPONSIBILITY AND CORPORATE REPUTATION ON COMPETITIVE ADVANTAGE THROUGH FINANCIAL PERFORMANCE
Purpose: This study focuses on a formulation of the problem of low competitiveness of manufacturing industries so that efforts need to be made to increase the competitive advantage of manufacturing companies in Indonesia by paying attention to aspects of social responsibility and Corporate Reputation mediated by financial performance. Theoretical framework: This study used the Resources Based View (RBV), Signalling Theory, Agency Theory, and Competitive Advantage model as the explanatory of CSR, Corporate Reputation Financial Performance, and Competitive Advantage. The yearly report of manufacturing businesses in the food and beverage sub-sector listed on the Indonesia Stock Exchange from 2013 until 2022 was calculated using the Structural Equation Model (SEM) method and the Smart-PLS application. Design/methodology/approach: We conducted our analysis using data from www.idx.co.id, the Indonesia Stock Exchange's official website. We discovered that, over the course of the study's 10-year research period, from 2013 to 2022, there will be 28 104 manufacturing companies in the food and beverage sub-sector. This study used a quantitative data analysis method as its data analysis strategy. This paper applied structural equation modeling (SEM) osfor data analysis. Findings: The Structural Equation Model (SEM) method found that corporate reputation had a positive and significant impact on financial performance, while social responsibility had a positive and significant impact on excellence competitiveness, corporate reputation had a positive and significant impact on competitive advantage, and corporate financial performance had a positive and significant impact on reputation. Research, Practical & Social implications: The findings of this research can explain about economic development and job creation, Improved quality of life, promotion of ethical standards, Inequality Reduction, environmental conservation, stakeholder trust and loyalty, education and skills developments. Originality/value: The originality and significant contribution of studying the influence of Corporate Social Responsibility (CSR) and Corporate Reputation (CG) on competitive advantage through financial performance are multi-faceted. First Pioneering holistic understanding. Enriching CSR and CG discourse, Guide for corporate strategy, Policy Implications, Investor guidance and Benefit for Stakeholders.
Competitive Advantage, Corporate Reputation, Financial Performance, Social Responsibility.