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ESG’s Role in Sustainable Performance: Green Innovation, Policy, and Supply Chain Resilience

Author

Listed:
  • I Made Suyanta Yoga

    (Hasanuddin University)

Abstract

Global trade volatility, climate pressures, and growing environmental concerns have intensified the need for sustainable business models, particularly in emerging economies. This study investigates the effects of Green Innovation (GI), Government Policy Support (GPS), and Supply Chain Resilience (SCR) on Sustainable Business Performance (SBP), with Environmental, Social, and Governance (ESG) practices examined as a moderating variable. Using a quantitative survey approach, data were collected from 300 decision-makers across manufacturing, logistics, and maritime-based SMEs in Indonesia—an economy at the forefront of the blue-green transition. Structural Equation Modeling (SEM-PLS) was employed to test the research model. The results reveal that GI, GPS, and SCR each have significant positive impacts on SBP, with GI emerging as the strongest driver. ESG practices strengthen the effects of GI and GPS on SBP but show no significant moderating role in the SCR–SBP relationship. These findings reinforce the Porter Hypothesis that well-designed regulations and innovation can drive competitiveness, while also highlighting the independent importance of operational resilience in uncertain global environments. The study contributes to sustainability literature by integrating innovation, policy, and resilience within the context of blue-green economies, and offers actionable insights for managers and policymakers to align ESG strategies with business transformation.

Suggested Citation

  • I Made Suyanta Yoga, 2026. "ESG’s Role in Sustainable Performance: Green Innovation, Policy, and Supply Chain Resilience," Advances in Economics, Business and Management Research,, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6239-709-5_92
    DOI: 10.2991/978-94-6239-709-5_92
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