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Leading for Sustainability: ESG Implementation and Performance in Indonesian Forestry Firms

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  • Maria Klara Dhika Ayu Utaminingtyas

    (Hasanuddin University)

Abstract

Forestry and wood-based firms face intensifying expectations to demonstrate credible environmental, social, and governance (ESG) performance while sustaining competitiveness. Building on the natural-resource-based view, dynamic capabilities, and upper-echelons logic, this study tests a parsimonious leadership-to-practice-to-performance mechanism in South Sulawesi, Indonesia. We model strategic environmental leadership (SEL) as the independent variable, ESG implementation as the mediator, and sustainability performance (SP) as the outcome. Using a cross-sectional survey of 212 firms selected via proportional stratification by subsector and district cluster, we estimate a variance-based structural equation model. The measurement model meets accepted quality criteria. Structurally, SEL strongly predicts ESG (β = 0.62, p

Suggested Citation

  • Maria Klara Dhika Ayu Utaminingtyas, 2026. "Leading for Sustainability: ESG Implementation and Performance in Indonesian Forestry Firms," Advances in Economics, Business and Management Research,, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6239-709-5_178
    DOI: 10.2991/978-94-6239-709-5_178
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