Competitive Advantage and Corporate Governance in Indonesia with Enterprise Risk Management as Mediating

Abstract

The objective of this research is the implementation of Good Corporate Governance in Indonesia  began to be intensified by the government since the events of the Indonesian economic crisis in 1997-1998. Because, at that time almost all of the companies in Indonesia still used traditional governance, where company owners became company managers. Because of that, suspected because there is no separation between the supervision and management system resulting in many conflicts of interest in companies in Indonesia, it is one of the factors that exacerbate the economic crisis. At present in the industrial revolution 4.0 that will be faced, the implementation of Good Corporate Governance is expected to be the key determinant in maintaining the level of stakeholders' trust in corporate governance.In this article, the author will try to analyze the implementation of Good Corporate Governance in companies with Competitive Advantage and the influence of Enterprise Risk Management in mediating the relationship between the three variables.

Keywords: Enterprise Risk Management, Good Corporate Governance, Cost Leadership Strategy, Diffetentiation Strategy, Indonesia

DOI: 10.7176/JESD/10-8-05

Publication date: April 30^th 2019