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Enhancing Financial Performance and The Growth of Company Value in Facing Global Competition Catur Fatchu Ukhriyawati; Shafie Zabri; Tibrani Tibrani
Jurnal Organisasi dan Manajemen Vol. 22 No. 1 (2026)
Publisher : LPPM Universitas Terbuka

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.33830/jom.v22i1.11852.2026

Abstract

Purpose – This study aims to evaluate the impact of financial performance on firm value growth in the context of global competition, focusing on the manufacturing industry in Batam. Methodology – A quantitative approach involving 10 companies and 110 participants was used in this research. Some data were collected through a questionnaire containing statements related to the variables of this research. SmartPLS software was used in data analysis to examine the relationships between variables and indicators that influence firm value growth. Findings – The results show that financial performance significantly affects the growth of firm value, with a very high correlation. In contrast, the relationships between financial performance and global competition, as well as between global competition and the growth of firm value, were not statistically significant. As a mediating variable, global competition does not provide a significant contribution, as indicated by a very low correlation value and T-statistics that are below the significance limit. These findings confirm that the effective financial performance management through improved profitability, liquidity, and solvency is an essential factor of the growth of firm value. Originality – This study offers new insight by exploring global competition as a mediating variable between financial performance and the growth of company value in the underexplored manufacturing sector in Batam.