The Effect of Digital Analytics Based Strategic Cost Management on Operational Efficiency and Corporate Financial Performance

This study aims to examine the effect of digital analytics-based strategic cost management, consisting of digital analytics-based cost driver analysis, digital analytics-based value chain cost management, and digital analytics-based target costing, on corporate financial performance with operational efficiency as a mediating variable. This study employs a quantitative research approach using a survey method involving 100 companies in Ambon City that have implemented digital technologies, accounting information systems, financial dashboards, or analytical platforms to support cost management and operational decision-making. Data were analyzed using Structural Equation Modeling based on Partial Least Squares (SEM-PLS) with SmartPLS. The results indicate that all dimensions of digital analytics-based strategic cost management have positive and significant effects on operational efficiency and corporate financial performance. Operational efficiency also significantly mediates the relationship between digital analytics-based strategic cost management and corporate financial performance. These findings imply that companies can improve financial performance by integrating digital analytics into cost management practices to enhance cost visibility, operational productivity, resource utilization, and strategic decision-making capabilities. This study contributes by developing an integrated framework linking digital analytics, strategic cost management, operational efficiency, and financial performance in the context of digital transformation.