Sustainability Transformation: Leadership, Innovation, and Strategic Flexibility Improve Sustainability Performance
Downloads
This study investigates how sustainability leadership impacts sustainability performance through strategic flexibility and sustainability innovation, which function as the mediators. This study collected data from 200 respondents using purposive sampling and 6-point Likert scale questionnaires. The data were subsequently analyzed using PLS-SEM. The findings confirm that sustainability leadership significantly and positively impacts sustainability performance through strategic flexibility and innovation. Additionally, data analysis revealed that sustainability leadership has a positive and significant impact on strategic flexibility and sustainability innovation. This study highlights the unique aspect of the Indonesian mining sector. It has not received extensive examination regarding sustainability and sustainability leadership as systems thinking that requires the perspective of interdependent structures and adaptability to changes. Strategic flexibility, as an organization's capability to adapt to changes reactively and proactively, is crucial to the organization's effort to create sustainability innovation to ensure sustainability performance.
Downloads
[1] Kuhlman, T., & Farrington, J. (2010). What is Sustainability? Sustainability, 2(11), 3436–3448. doi:10.3390/su2113436.
[2] Almaqtari, F. A., Elsheikh, T., Hussainey, K., & Al-Bukhrani, M. A. (2024). Country-level governance and sustainable development goals: implications for firms’ sustainability performance. Studies in Economics and Finance, 41(3), 684–723. doi:10.1108/SEF-05-2023-0272.
[3] Hansen, E. G., & Schaltegger, S. (2014). The Sustainability Balanced Scorecard: A Systematic Review of Architectures. Journal of Business Ethics, 133(2), 193–221. doi:10.1007/s10551-014-2340-3.
[4] Schaltegger, S., Lüdeke-Freund, F., & Hansen, E. G. (2016). Business Models for Sustainability: A Co-Evolutionary Analysis of Sustainable Entrepreneurship, Innovation, and Transformation. Organization and Environment, 29(3), 264–289. doi:10.1177/1086026616633272.
[5] Keeble, B. R. (1988). The Brundtland report: ‘Our common future.’ Medicine and War, 4(1), 17–25. doi:10.1080/07488008808408783.
[6] Intergovernmental Panel on Climate Change (IPCC). (2022). Global Warming of 1.5°C. Intergovernmental Panel on Climate Change (IPCC), Geneva, Switzerland. doi:10.1017/9781009157940.
[7] A/RES/70/1. (2015). Transforming our world: The 2030 agenda for sustainable development. UN. Department of Economic and Social Affairs. Division for Sustainable Development Goals, United Nations, New York, United States.
[8] Doppelt, B., & McDonough, W. (2017). Leading Change Toward Sustainability. Routledge, United Kingdom. doi:10.4324/9781351278966.
[9] An, Z., Zhao, Y., & Zhang, Y. (2023). Mineral exploration and the green transition: Opportunities and challenges for the mining industry. Resources Policy, 86, 104263. doi:10.1016/j.resourpol.2023.104263.
[10] Mahdi, O. R., & Nassar, I. A. (2021). The business model of sustainable competitive advantage through strategic leadership capabilities and knowledge management processes to overcome covid-19 pandemic. Sustainability (Switzerland), 13(17), 9891. doi:10.3390/su13179891.
[11] Singh, P. (2024). Analyzing Responsible Leadership Effectiveness for Attainment of Sustainable Development Goals in Developing Countries Using Environmental Scanning Techniques. Responsible Corporate Leadership Towards Attainment of Sustainable Development Goals. Responsible Leadership and Sustainable Management, Springer, Singapore. doi:10.1007/978-981-97-1386-8_13.
[12] Basu, M., & Mukherjee, K. (2020). Impact of Sustainable Leadership on Organizational Transformation. Sustainable Human Resource Management. Springer, Singapore. doi:10.1007/978-981-15-5656-2_9.
[13] Burawat, P. (2019). The relationships among transformational leadership, sustainable leadership, lean manufacturing and sustainability performance in Thai SMEs manufacturing industry. International Journal of Quality and Reliability Management, 36(6), 1014–1036. doi:10.1108/IJQRM-09-2017-0178.
[14] Fatoki, O. (2021). Sustainable leadership and sustainable performance of hospitality firms in South Africa. Entrepreneurship and Sustainability Issues, 8(4), 610–621. doi:10.9770/jesi.2021.8.4(37).
[15] Iqbal, Q., Ahmad, N. H., & Halim, H. A. (2020). How Does Sustainable Leadership Influence Sustainable Performance? Empirical Evidence from Selected ASEAN Countries. Sage Open, 10(4). doi:10.1177/2158244020969394.
[16] Eustachio, J. H. P. P., Caldana, A. C. F., & Leal Filho, W. (2023). Sustainability leadership: Conceptual foundations and research landscape. Journal of Cleaner Production, 415, 137761. doi:10.1016/j.jclepro.2023.137761.
[17] Alves, W., Ferreira, P., & Araújo, M. (2021). Challenges and pathways for Brazilian mining sustainability. Resources Policy, 74, 101648. doi:10.1016/j.resourpol.2020.101648.
[18] Famiyeh, S., Opoku, R. A., Kwarteng, A., & Asante-Darko, D. (2021). Driving forces of sustainability in the mining industry: Evidence from a developing country. Resources Policy, 70. doi:10.1016/j.resourpol.2020.101910.
[19] Maliganya, W., & Bengesi, K. M. K. (2023). Compliance Of Large-Scale Mining Companies to Regulatory Framework for Sustainable Mining: A Case of Buzwagi Gold Mine, Kahama District, Tanzania. Business Excellence and Management, 13(3). doi:10.24818/Beman/2023.13.3-06.
[20] Cacciuttolo, C., & Atencio, E. (2022). Past, Present, and Future of Copper Mine Tailings Governance in Chile (1905–2022): A Review in One of the Leading Mining Countries in the World. International Journal of Environmental Research and Public Health, 19(20), 13060. doi:10.3390/ijerph192013060.
[21] Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: what are they? Strategic Management Journal, 21(10–11), 1105–1121. doi:10.1002/1097-0266(200010/11)21:10/11<1105::aid-smj133>3.0.co;2-e.
[22] Sanchez, R. (1995). Strategic flexibility in product competition. Strategic Management Journal, 16(S1), 135–159. doi:10.1002/smj.4250160921.
[23] Senge, P. (2008). The necessary revolution: How individuals and organisations are working together to create a sustainable world. Management Today, 24(10), 54-57.
[24] Porter, T., & Córdoba, J. (2009). Three views of systems theories and their implications for sustainability education. Journal of Management Education, 33(3), 323–347. doi:10.1177/1052562908323192.
[25] Yang, J., Zhang, F., Jiang, X., & Sun, W. (2015). Strategic flexibility, green management, and firm competitiveness in an emerging economy. Technological Forecasting and Social Change, 101, 347–356. doi:10.1016/j.techfore.2015.09.016.
[26] Nwachukwu, C., & Vu, H. M. (2020). Strategic flexibility, strategic leadership and business sustainability nexus. International Journal of Business Environment, 11(2), 125. doi:10.1504/ijbe.2020.107500.
[27] Dwikat, S. Y., Arshad, D., & Mohd Shariff, M. N. (2023). Effect of Competent Human Capital, Strategic Flexibility and Turbulent Environment on Sustainable Performance of SMEs in Manufacturing Industries in Palestine. Sustainability, 15(6), 4781. doi:10.3390/su15064781.
[28] Schaltegger, S., & Wagner, M. (2006). Integrative management of sustainability performance, measurement and reporting. International Journal of Accounting, Auditing and Performance Evaluation, 3(1), 1–19. doi:10.1504/IJAAPE.2006.010098.
[29] Damtoft, N. F., van Liempd, D., & Lueg, R. (2025). Sustainability performance measurement – a framework for context-specific applications. Journal of Global Responsibility, 16(1), 162–201. doi:10.1108/JGR-05-2023-0082.
[30] Elkington, J. (1997). The triple bottom line. Environmental management: Readings and cases, 2(1997), 49-66, Capstone, North Mankato, United States.
[31] Ibrahim, Y. M., Hami, N., & Abdulameer, S. S. (2020). A scale for measuring sustainable manufacturing practices and sustainability performance: validity and reliability. Quality Innovation Prosperity, 24(2), 59–74. doi:10.12776/QIP.V24I2.1385.
[32] Akhimien, O. G., & Adekunle, S. A. (2023). Technological environment and sustainable performance of oil and gas firms: a structural equation modelling approach. Future Business Journal, 9(1), 24. doi:10.1186/s43093-023-00204-5.
[33] Beehner, C. G. (2019). System leadership for sustainability. Routledge, London, United Kingdom. doi:10.4324/9780429324512.
[34] Liao, Y. (2022). Sustainable leadership: A literature review and prospects for future research. Frontiers in Psychology, 13, 1045570. doi:10.3389/fpsyg.2022.1045570.
[35] Sajjad, A., Eweje, G., & Raziq, M. M. (2024). Sustainability leadership: An integrative review and conceptual synthesis. Business Strategy and the Environment, 33(4), 2849–2867. doi:10.1002/bse.3631.
[36] Hitt, M. A., Keats, B. W., & DeMarie, S. M. (1998). Navigating in the new competitive landscape: Building strategic flexibility and competitive advantage in the 21st century. Academy of Management Executive, 12(4), 22–42. doi:10.5465/ame.1998.1333922.
[37] Agostini, L., Nosella, A., Sarala, R., & Nkeng, C. (2023). Emerging trends around strategic flexibility: a systematic review supported by bibliometric techniques. Management Decision, 62(13), 46–92. doi:10.1108/MD-02-2023-0135.
[38] Charter, M., & Clark, T. (2007). Sustainable Innovation: Key conclusions from Sustainable Innovation Conferences 2003-2006 organized by The Centre for Sustainable Design. In Innovation, The Centre for Sustainable Design, University College for the Creative Arts, Farnham, United Kingdom.
[39] Hermundsdottir, F., & Aspelund, A. (2021). Sustainability innovations and firm competitiveness: A review. Journal of Cleaner Production, 280, 124715. doi:10.1016/j.jclepro.2020.124715.
[40] Zotov, M. (2024). Innovation to ensure sustainable development in the coal industry. E3S Web of Conferences, 548, 4021. doi:10.1051/e3sconf/202454804021.
[41] Afeltra, G., Alerasoul, S. A., Minelli, E., Vecchio, Y., & Montalvo, C. (2022). Assessing the Integrated Impact of Sustainable Innovation on Organisational Performance: An Empirical Evidence from Manufacturing Firms. Journal of Small Business Strategy, 32(4), 143–166. doi:10.53703/001c.38515.
[42] Baxter, D., & Chipulu, M. (2023). Developing a new scale for measuring sustainability-oriented innovation. Journal of Cleaner Production, 429, 139590. doi:10.1016/j.jclepro.2023.139590.
[43] Miroshnychenko, I., Strobl, A., Matzler, K., & De Massis, A. (2021). Absorptive capacity, strategic flexibility, and business model innovation: Empirical evidence from Italian SMEs. Journal of Business Research, 130, 670–682. doi:10.1016/j.jbusres.2020.02.015.
[44] Abdul. (2010). Quality of Psychology Test Between Likert Scale 5 and 6 Points. Journal of Social Sciences, 6(3), 399–403. doi:10.3844/jssp.2010.399.403.
[45] Usakli, A., & Rasoolimanesh, S. M. (2023). Which SEM to Use and What to Report? A Comparison of CB-SEM and PLS-SEM. Cutting Edge Research Methods in Hospitality and Tourism, 5–28, Emerald Publishing Limited, Leeds, United Kingdom. doi:10.1108/978-1-80455-063-220231002.
[46] Linnenluecke, M. K., & Griffiths, A. (2010). Corporate sustainability and organizational culture. Journal of World Business, 45(4), 357–366. doi:10.1016/j.jwb.2009.08.006.
[47] Wang, L., Jin, X., & Yoo, J. J. (2024). The Process of Visionary Leadership Increases Innovative Performance among IT Industry 4.0 for SMEs for Organizational Sustainability: Testing the Moderated Mediation Model. Sustainability (Switzerland), 16(19), 8690. doi:10.3390/su16198690.
[48] Bansal, P., & DesJardine, M. R. (2014). Business sustainability: It is about time. Strategic Organization, 12(1), 70–78. doi:10.1177/1476127013520265.
[49] Slawinski, N., & Bansal, P. (2009). Short on time: The role of time in business sustainability. Academy of Management Annual Meeting Proceedings, 26(2), 531–549. doi:10.5465/ambpp.2009.44257607.
[50] Teece, D. J. (2017). Towards a capability theory of (innovating) firms: Implications for management and policy. Cambridge Journal of Economics, 41(3), 693–720. doi:10.1093/cje/bew063.
- This work (including HTML and PDF Files) is licensed under a Creative Commons Attribution 4.0 International License.
