Widharma Raya Dipodiputro, Hamidah Nayati Utami, Mohammad Iqbal, Saparila Worokinasih
This study examines the role of sustainable leadership and organizational green culture in fostering green innovation and their subsequent impact on sustainable corporate performance. Grounded in the Resource-Based View (RBV) theory, the research explores how internal organizational capabilities contribute to long-term sustainability and competitive advantage, particularly in the fertilizer industry. The study was conducted at PT Pupuk Indonesia, with a sample comprising 250 top management respondents selected through random sampling. Data analysis was performed using Structural Equation Modeling (SEM) with SmartPLS 3.0 to assess the relationships among variables. The results reveal that sustainable leadership significantly enhances green innovation, while organizational green culture positively influences green innovation and sustainable corporate performance. Additionally, green innovation contributes significantly to sustainable corporate performance. However, sustainable leadership does not directly affect sustainable corporate performance, indicating that its impact is mediated through green innovation. The study underscores the importance of cultivating a strong organizational green culture to drive green innovation and achieve long-term corporate sustainability. It also highlights the indirect role of sustainable leadership in improving sustainable corporate performance through innovation-led pathways. From an RBV perspective, these findings reinforce that internal strategic resources, such as leadership and culture, are key drivers of sustainable corporate outcomes. These findings provide actionable insights for business leaders and policymakers aiming to enhance corporate sustainability. Organizations should prioritize sustainable leadership to foster an innovative culture and integrate green initiatives into their strategic operations. This research advances the existing literature by offering an integrated model that links sustainable leadership, organizational green culture, green innovation, and sustainable corporate performance. By contextualizing these relationships within PT Pupuk Indonesia, this study fills an empirical gap in sustainability research within the fertilizer industry while contributing to the theoretical understanding of RBV in sustainability-driven corporate strategies. © 2026 American Society for Quality.
Brawijaya University, Malang, Indonesia
