In recent years, the pressing issue of sustainability has garnered immense attention across various sectors, particularly in the realm of corporate governance. Indonesian corporations are increasingly embracing sustainable practices, recognizing not only their ethical obligations but also the tangible benefits they reap from adopting green investment strategies. A pioneering study by Abdurrohman and Subiyantoro sheds light on this transformative journey, illustrating the crucial role of moderated mediation in understanding how environmental investments influence corporate sustainability. This research is positioned to be a cornerstone in both academic literature and practical applications, particularly as it delves into the intricate relationships between green investments and sustainable outcomes in a developing economy.
Indonesia, as one of the largest emerging markets, presents a unique case for examining the intersection of corporate sustainability and environmental responsibility. The country’s rich natural resources, coupled with its significant economic potential, make it a focal point for green investments. Yet, challenges such as regulatory frameworks, climate change, and economic disparities continue to pose significant obstacles. The study by Abdurrohman and Subiyantoro identifies these challenges and explores how they can be navigated through strategic corporate practices that prioritize sustainability alongside profitability.
Central to the study is the concept of green investment, which encompasses a range of financial commitments toward environmentally friendly projects and technologies. This approach not only aims to reduce a corporation’s carbon footprint but also to embed sustainability within the organizational fabric, promoting long-term viability and enhancing corporate reputation. By investing in green technologies, companies are not merely adhering to regulatory demands; they are also setting themselves up for innovative breakthroughs that can lead to unprecedented market advantages.
The moderated mediation approach used in the research further enriches the understanding of how these green investments impact overall business sustainability. This analytical framework allows the authors to dissect complex interactions and identify underlying mechanisms that drive successful outcomes. By doing so, they reveal how environmental, social, and governance (ESG) factors play into strategic decision-making processes. These factors are critical for companies looking to establish themselves as leaders in sustainability, enabling them to create robust business models that are both economically viable and environmentally sound.
Besides direct investments in renewable energy or sustainable materials, the research emphasizes the importance of corporate governance and stakeholder engagement in fostering an environment conducive to sustainability. The study highlights that corporations must actively engage with consumers, investors, and local communities to align their sustainability goals with broader societal needs. This multidimensional engagement not only enhances corporate image but also builds trust, which is increasingly becoming a currency in the modern market.
The findings presented by Abdurrohman and Subiyantoro underscore the increasing necessity for corporations to integrate sustainability into their core strategic frameworks. As consumer awareness grows around climate issues, companies that ignore green investments risk not only reputational damage but also potential financial losses. The authors argue that sustainable practices should be viewed not simply as a compliance measure but as an integral part of a company’s strategic advantage, a viewpoint that is gaining traction in corporate boardrooms globally.
Furthermore, the study addresses the importance of policy frameworks in facilitating green investments. Governments play a pivotal role in creating conducive environments for sustainable business practices. The authors contend that favorable regulations and incentives can significantly influence corporate decisions, urging policymakers to foster a culture of sustainability through legislative measures. By aligning business incentives with environmental goals, policymakers can catalyze a broader shift toward sustainable economic development.
The research also offers empirical insights, drawing from case studies across various Indonesian industries. These case studies illustrate the diverse applications of green investments, highlighting successful initiatives that have resulted in measurable sustainability. The authors meticulously demonstrate how companies that adopted these practices not only saw improvements in environmental performance but also enhanced profitability and market share, thereby debunking the myth that sustainability and financial success are mutually exclusive.
In essence, the relevance of this study extends beyond the geographical confines of Indonesia. It resonates globally, providing a model for corporations in developed and developing nations alike. The insights gained here are applicable in various contexts, recognizing that the journey toward sustainability requires a multifaceted approach where business leaders are called upon to innovate continuously and adapt to an evolving landscape.
As the world grapples with the realities of climate change and environmental degradation, the research by Abdurrohman and Subiyantoro stands as a significant contribution, urging stakeholders to embrace green investments more wholeheartedly. The implications for businesses are immense, as they have the opportunity to lead the charge toward a more sustainable future. It is clear that the path to corporate sustainability is not just a choice but an imperative for survival in today’s increasingly eco-conscious marketplace.
The study is not just a call to action for large corporations but also provides valuable insights for small and medium enterprises (SMEs) in Indonesia. With tailored strategies that consider their specific contexts and constraints, these businesses can also harness the power of green investments to enhance their sustainability profiles. The potential for SMEs to contribute positively to the environmental landscape is enormous, and with the right guidance and support, they can become key players in the green economy.
As businesses look forward, the integration of sustainability into corporate strategies will likely become more prevalent, driven by both consumer demand and regulatory pressure. The research serves as a reference point for future studies in the field, inspiring scholars and practitioners to explore further the intricate relationships between investment behavior, corporate governance, and sustainability. Ultimately, the call to embrace green investments is a compelling one; it is no longer merely a trend but a fundamental shift in how businesses operate within the fabric of society.
In conclusion, Abdurrohman and Subiyantoro’s study makes a profound impact by connecting the dots between corporate strategy and environmental responsibility in Indonesia, demonstrating that the two can, and must, coexist. By adopting a moderated mediation approach, the authors provide a nuanced understanding that opens the door to further research and practical applications. As the corporate world continues to evolve, embracing sustainability will not be just an option, but the driving force behind future growth and innovation.
Subject of Research: Corporate business sustainability and green investment in Indonesia.
Article Title: Exploring corporate business sustainability through green investment in Indonesia using a moderated mediation approach.
Article References:
Abdurrohman, Sunardi & Subiyantoro, E. Exploring corporate business sustainability through green investment in Indonesia using a moderated mediation approach. Discov Sustain (2026). https://doi.org/10.1007/s43621-025-02564-0
Image Credits: AI Generated
DOI: 10.1007/s43621-025-02564-0
Keywords: Corporate sustainability, green investment, moderated mediation, Indonesia, environmental responsibility.
