Competitive Advantage: Mediator of Diversification and Performance

摘要

Study relates to the correlation between diversification strategy and corporate sustainability performance, many of them are conducted in service industry. In this study, it is explained about competitive advantage that also becomes the important attention on the creation of corporate sustainability performance. But study relates to mediating effect of competitive advantage on the correlation of diversification and corporate sustainability performance, has not reviewed especially in-service industry and it becomes the focus of this study. The study is conducted by case study on Building Automation System industry in Indonesia as one of service industries that needs corporate sustainability performance. There are 43 directors of business unit which is taken their data by questionnaire as respondent, with using Structural Equation Model analysis. This finding is stated that corporate sustainability performance can be achieved well through the implementation of diversification strategy. But, competitive advantage is unable mediating diversification strategy on the improvement of corporate sustainability performance. This finding is useful to support Indonesia government's program in facing issue of "Saving Energy", through the review of Building Automation System industry.