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Journal : Income Journal of Economics Development

 1 
The Impact of Managerial Capabilities on the Effectiveness of Sustainable Economic Development: A Systematic Literature Review Ahmad Firdaus; Lina Mariana
Income Journal Of Economics Development Vol. 6 No. 1 (2026): January 2026
Publisher : Pustaka Digital Indonesia

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Abstract

Sustainable economic development has become a critical global priority, requiring organizations to balance economic growth with environmental sustainability and social equity. This study aims to examine the impact of managerial capabilities on the effectiveness of sustainable economic development through a systematic literature review. Using the PRISMA framework, this research analyzes 52 peer-reviewed articles published between 2021 and 2025, sourced from major academic databases including Scopus, Web of Science, ScienceDirect, and SpringerLink. The findings reveal that managerial capabilities—encompassing strategic decision-making, leadership, innovation management, and adaptability—play a central role in driving sustainability outcomes. These capabilities enable organizations to align business strategies with sustainability goals, optimize resource utilization, and respond effectively to dynamic environmental challenges. The study further identifies innovation as a key mediating variable that translates managerial competencies into sustainable performance, while leadership and organizational culture act as moderating factors that strengthen this relationship. Additionally, digital transformation emerges as a critical enabler that enhances managerial effectiveness by improving decision-making, operational efficiency, and organizational agility. The results also highlight that managerial capabilities are particularly crucial in emerging economies, where institutional limitations and resource constraints demand adaptive and innovative approaches. This study contributes to the literature by integrating multiple theoretical perspectives and proposing a comprehensive framework linking managerial capabilities to sustainable economic development. The findings provide important implications for managers, policymakers, and researchers in advancing sustainability-oriented strategies.
Co-Authors . Abdul Wahab Abdul Wahab Adi Siswanto Adi Siswanto Aditya Halim Perdana Kusuma Putra Putra Adrian Adrian Adrianus Parenden Agung Wicaksono Ahmad Firdaus Ahmad Firdaus Ahmad Firdaus, Ahmad Ainun Syaifa, Tamira Altin, Muhammad Anastasia D'Ornay Andi Saprianti Apiaty K Amin Apiaty Kamaluddin Aptiaty Kamaluddin Arsyad Paweroi Arwaty, Arwaty Asryanti Baharuddin, Megawaty Ceskakusumadewi Bahtiar Cesar, Aprilia Putri Maharani Dakhri, M Dakhri, M. Damis, Sariana Diani Nurhajati Effendy, Fiqram Ramadhan Eko Eddya Supriyanto EKO EDDYA SUPRIYANTO EKO EDDYA SUPRIYANTO Entar Sutisman Entis Sutisna Fadillah, Indira Fahrudin Pasolo Fibry Haeruddin Haeruddin Hartawati, Sri Indira Harun, Hernianti Hasniaty Hatidja, St Hatidja, St. Hernianti Harun Hidayat Marmin Husni Bt Salam Husni Salam I, Ilmiah Imran Tahalua Indarwati Indarwati Indarwati Indarwati Indarwati Indarwati Indarwati Indriana Ismawati Ismawati Ismawati Jamaluddin Jamaluddin Jamaluddin Jamaluddin Junaidin - Junaidin, Junaidin Kencanawati, Dewi M. Yusuf Alfian Rendra Anggoro KR Marmin, Hidayat Marsuni, Nur Sandi Matteo Rossi Megawhati Artiyany Megawhaty Artiyany Meida Rachmawati Meida Rachmawati Miranda, Yola Muh Rizal Halim Muh. Dakhri Muh. Ramli Muhammad Yusuf MUHAMMAD YUSUF munifa, Munifa Nasrullah , Nasrullah Nersiyanti, Nersiyanti Noor, Moh. Yasin Norhapifah, Hestri Nugroho, Fibry Jati Nur Aisyah Nur Fadny Yuliani Nur Fadny Yuliani Nur Sandi Marsuni Nur Sandi Marsuni Nurhaedar Nursiah, Andi Nurul Fitrah Yani Panus, Panus Pattarani, Andi Quach, Tai Minh R, Masmarulan Rachman, Siswati Ramadhani, Nurul Syahri Roslina Alam Rosmiati Rosmiati Ruki Ambar Arum Rusli Rusli Siri Sanusi, M Dakhri Sariana Damis Shofiana Syam Sri Indira Hartawati Sri Indira Hartawati Sri Indira Hartawati St. Hatidja St. Hatidja St. Hatidja - Suriani Suriani SURYA DHARMA Suryani, Anny Syarifuddin Syarifuddin - Syarifuddin Syarifuddin Thaha, Salmiyah Utina, Dian Anggriani Wagiman S Wibowo, J Ari WK, Muh. Yasin Noor Yuliani, Nur Fadny Yulitasari, Yulitasari