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Journal : keunis

Innovation's Mediating Contribution To The Relationship Between Financial Flexibility And Sustainability Performance Rahmadhani, Sari; Praptitorini, Mirna Dyah; Shobandiyah, Siti; Laila, Nazil Rizki
KEUNIS Vol. 13 No. 1 (2025): JANUARY 2025
Publisher : Finance and Banking Program, Accounting Department, Politeknik Negeri Semarang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32497/keunis.v13i1.6111

Abstract

This study explores the impact of debt and cash combination arrangements as financial flexibility that can improve sustainable performance in companies. This research also examines how innovation mediates the relationship between a company's financial flexibility and future sustainability achievements. Utilizing a resource-based view and path analysis, we analyze data from sustainability reports of basic and chemical industry firms listed on the IDX from 2020 to 2023. These findings provide empirical evidence that contingency theory can adapt by controlling the effect of financial flexibility on sustainability performance. As tested through debt and cash flexibility, financial flexibility has no direct impact on sustainability performance. Meanwhile, innovation is proven to depend on sustainability achievement. Empirical evidence of resource-based theory, where financial flexibility is a potential competitive advantage over the development and research process in innovation. Likewise, innovation holds a significant role in linking financial flexibility to sustainability performance. Companies with flexible finances can more easily allocate resources to innovate, increasing the company's ability to carry out activities that pay attention to the social and environmental impacts of sustainable business activities.
Co-Authors - Astohar - Dhian AMS Abdullah Abdullah Abdullah Abdullah Adhitya Yoga Prasetya Agustinus Jaha Dili Amini, Rahmi Anastasia Wea Andi Kartika Anisa Kusumawardani Anisa, Fitri Arkanuddin Nur Arona Jaya Telaumbanua Astillero, Marlon Rael Astohar Astohar Astohar Astohar Ausgaria Ega Benediktus Ardie Reho Bhandari, Rahul Bone, Esra Eban Br Haloho, Yesicha Windi Yani Chanwut Thongkamkaew Christiani, Aqnisa DHIAN ANDANARINI MINAR SAVITRI Dian Kurniasari Dian Kurniasari Dili, Agustinus Jaha Diovany Tirtana Endamora Fatlina Z Hari, Dewi Gulyla Hasan Abdul Rozak Heri Susanto Husnunnisa Indira Djanuarti Indrasmitha, Gustyana Indriyani, Rahayu Irawan Yuswono Irfan, Nawwar Ita Nur Rahmawati Jaeni Jaeni Kase, Ratna Khazanah Nurain Nurdin Khazanah Nurain Nurdin Kikiana, Marsia Laila, Nazil Rizki Lubis, Nursyafni Lusi Indriani Mabruri, Dzikhaq Miftakhurniyati, Miftakhurniyati Muhamad Saufi Che Rusuli Mulyani Mulyani Nasution, Izza Aulia Rizqika Nico Irawan Ningly, Ira Ningrum, Dina Dwi Noor Salim Noveri Rahmawati Novtafia Endri Nur, Arkanuddin Nurdina Putri Olo, Andriana Paskah A Sinaga Praptitorini, Mirna Dyah Putri Tri Hartini Putri, Nurdina Rahayu Indriyani Rahmawati, Ita Nur Rahul Bhandari RATNA SARI Resi Rizki Banjarani Restu Anisa Puteri Restu Anisa Putri Reza laila Najmi Rizky Rindiana Rosita Rosita Rusli, Muhamad Saufi Che Shobandiyah, Siti Shobandiyah, Siti Siti Helmyati Siti Niqmatun Jannah Sugiharti Sugiharti Sugiharti Sugiharti Taswan, Taswan Tri Sumiyanti Wery, Artiany Yanto, Dwi Zati Rizka Fadhila