The Effect of Strategic Leadership and Environmental Management on Firm Performance Mediated by Competitive Advantage in The Mining Industry

Adrian Nurcahyo

doi:10.38035/dijefa.v5i3.3182

Authors

Adrian Nurcahyo Universitas Bunda Mulia, Tangerang, Indonesia

DOI:

https://doi.org/10.38035/dijefa.v5i3.3182

Keywords:

Strategic Leadership, Environmental Management, Competitive Advantage, Firm Performance, Mining Industry

Abstract

This study aims to investigate and analyze the impact of strategic leadership and environmental management on competitive advantage, and the effect of strategic leadership and environmental management on firm performance mediated by competitive advantage within the mining industry in Indonesia. Data for this research were collected from a population of 90 respondents who work in the mining sector and possess a Mining Business License (IUP) as well as are members of the Indonesia Mining Association (IMA). The sample includes business owners, mining contractors, mining consultants, traders, and beneficiation plant operators. This study analyzed the effects of Strategic Leadership and Environmental Management on Competitive Advantage and Firm Performance in the mining industry using Structural Equation Modeling (SEM) with Partial Least Squares (PLS). The findings reveal that Strategic Leadership and Environmental Management significantly enhance Competitive Advantage. However, their direct effects on Firm Performance are not significant, suggesting their impact is mediated through Competitive Advantage. Notably, Competitive Advantage strongly drives Firm Performance. These results highlight the critical roles of strategic leadership and sustainable practices in fostering competitive strengths, ultimately leading to superior performance outcomes. Mining companies should focus on these areas to achieve and sustain competitive advantages. Future research should explore additional mediating factors and examine these relationships in various contexts to deepen the understanding of these dynamics within the mining sector.

References

Bougie, R., & Sekaran, U. (2020). Research Methods For Business A Skill Building Approach. In Research Methods for Business A Skill-Building Approach (8th ed.). John Wiley & Sons, Inc.

Hair, J. F., Hult, G. T. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial Least Squares Structural Equation Modeling(PLS-SEM) Using R A Wordbook (Third Edition). Sringer Nature Switzerland AG.

Hendrata, D., Arofah, W., & Martadisastra, D. S. (2023). Enrichment: Journal of Management The influence of strategic leadership, transformational leadership and visionary leadership on performance at the naval academy mediated by decision making. In Enrichment: Journal of Management (Vol. 12, Issue 6).

O’Shannassy, T. (2021). The Challenges of Strategic Leadership in Organizations. In Journal of Management and Organization (Vol. 27, Issue 2, pp. 235–238). Cambridge University Press. https://doi.org/10.1017/jmo.2021.36

Otten, J. A., & Heugens, P. P. M. A. R. (n.d.). THE MANAGERIAL POWER THEORY OF EXECUTIVE PAY: A CROSS NATIONAL TEST AND EXTENSION.

Potrich, L., Cortimiglia, M. N., & de Medeiros, J. F. (2019). A systematic literature review on firm-level proactive environmental management. In Journal of Environmental Management (Vol. 243, pp. 273–286). Academic Press. https://doi.org/10.1016/j.jenvman.2019.04.110

Priadana, S., Sunarsi, D., Prawiro Sudarso, A., Mogi, A., Agustin, F., Irawati, L., Sapari Kahpi, H., Wandi, D., Purwanto, A., & Tinggi Ilmu Ekonomi Banten, S. (2021). The Effect of Strategic Leadership on Competitive Strategy and Business Performance: Evidence from Indonesian SME’s (Vol. 25). http://annalsofrscb.ro

Rezende, L. de A., Bansi, A. C., Alves, M. F. R., & Galina, S. V. R. (2019). Take your time: Examining when green innovation affects financial performance in multinationals. Journal of Cleaner Production, 233, 993–1003. https://doi.org/10.1016/j.jclepro.2019.06.135

Siswoyo, M., Kustyadji, G., Wijayani, A., & Hartati, W. (2020). Competitive advantage of environmental management and green innovation. Utopia y Praxis Latinoamericana, 25(Extra10), 533–544. https://doi.org/10.5281/zenodo.4155841

Sugiyono. (2022). Metode Penelitian Kuantitatif, Kualitatif, dan R&D (Edisi 2). CV Alfabeta.

Sugiyono. (2024). Metode Penelitian Kuantitatif (Setiyawami, Ed.; Edisi ke-3). CV.Alfabeta.

Yi, Y., Chen, Y., & He, X. (2022). CEO Leadership, Strategic Decision Comprehensiveness, and Firm Performance: The Moderating Role of TMT Cognitive Conflict. Management and Organization Review, 18(1), 131–166. https://doi.org/10.1017/mor.2021.10.