Asian Management and Business Review
Volume 5 Issue 2, 2025

How environmental effort drives performance through competitive advantage in the Indonesian recycling industry

Agustiani, Sekar Ayu (Unknown)
Sabihaini, Sabihaini (Unknown)
Effendi, Mohamad Irhas (Unknown)



Article Info

Publish Date
20 Aug 2025

Abstract

This study explores the influence of corporate efforts in managing natural resources (ESD) on sustainable performance, specifically its economic and social dimensions, in Indonesia’s recycling industry, emphasizing the mediating role of competitive advantage. Additionally, it examines the effects of corporate social responsibility (CSR) and green innovation (GI) as control variables. Data were collected through an online survey involving 129 recycling companies across various Indonesian provinces. The research employs structural equation modeling using the partial least squares (SEM-PLS) method to test both direct and indirect relationships among variables. The results reveal that corporate efforts in managing natural resources significantly enhance competitive advantage, which in turn positively influences both economic and social dimensions of sustainable performance. Further­more, competitive advantage serves as a key mediator in the relationship between environmental efforts and sustainable outcomes. CSR and GI also exhibit significant effects on economic performance, underlining their strategic importance. However, the impact of envi­ron­mental initiatives on social performance remains limited without strong integration with sustainable development practices. The study highlights that achieving sustainability in the recycling industry requires an integrated approach that combines environmental management, competitive strategy, and innovation. These findings offer practical insights for industry stakeholders aiming to enhance long-term sustainability and competitiveness in an emerging market context.

Copyrights © 2025






Journal Info

Abbrev

AMBR

Publisher

Subject

Decision Sciences, Operations Research & Management Social Sciences

Description

Asian Management and Business Review (AMBR) is a peer-review journal published twice a year (February and August) by Master of Management, Department of Management, Faculty of Business and Economics, Universitas Islam Indonesia. AMBR addresses the broad area of management applied and its practices ...