ORIGINAL RESEARCH article
Front. Hum. Dyn.
Sec. Environment, Politics and Society
Volume 7 - 2025 | doi: 10.3389/fhumd.2025.1599894
Enhancing green innovation and financial performance: The role of stakeholder pressures and green dynamic capabilities
Provisionally accepted
- Binus University, West Jakarta, Indonesia
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The present study focuses on stakeholder pressures and the green dynamic capabilities of achieving green innovation and financial performance in various sectors in Indonesia. Data were collected from one hundred and twenty top management representing their companies involved in this study, and path analysis was applied to test the hypothesis. The study results reveal that stakeholder pressures strengthen organizational green dynamic capabilities and innovation. Moreover, the study finds that stakeholder pressures significantly and positively predict green innovation through green dynamic capabilities and corporate financial performance through sequential mediation involving both green dynamic capabilities and green innovation. This study underscores the significance of green initiatives across various sectors, positioning them as essential components of corporate strategy in the modern business landscape.
Keywords: Stakeholder pressure, Green dynamic capabilities, green innovation, Financial performance, Business entities, Firm size
Received: 25 Mar 2025; Accepted: 23 Jun 2025.
Copyright: © 2025 Widyantoro, Rusmanto, Warganegara and Furinto. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
* Correspondence: Tjatur Widyantoro, Binus University, West Jakarta, Indonesia
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