<![CDATA[This study examines the strategic determinants and performance consequences of Energy Transition Strategy Intensity in Indonesian power companies. Drawing on Institutional Theory, the Resource-Based View, Corporate Governance Theory, and Dynamic Capability Theory, the study investigates the effects of Institutional Pressure, Firm Characteristics, Corporate Governance, and Dynamic Capabilities on transition strategy and firm performance. A quantitative explanatory approach was applied to 42 Indonesian electricity companies during 2021–2025, generating firm-year observations analyzed using Partial Least Squares Structural Equation Modeling. The results show that Institutional Pressure, Firm Characteristics, Corporate Governance, and Dynamic Capabilities significantly influence Energy Transition Strategy Intensity, with Dynamic Capabilities emerging as the strongest determinant. High Leverage constrains strategic flexibility and transition investment. Energy Transition Strategy Intensity has a strong positive effect on Non-Financial Performance, particularly environmental, social, and governance outcomes, emission reductions, stakeholder trust, and organizational legitimacy, while its positive effect on Financial Performance is weaker and more gradual. The strategy also mediates the relationships between Institutional Pressure, Corporate Governance, and firm performance, while Dynamic Capabilities strengthen the effect of Institutional Pressure on transition intensity. The study concludes that energy transition is a capability-driven strategic reconfiguration process rather than merely a regulatory compliance initiative. Regulatory alignment, organizational capability development, effective governance, and financial flexibility are therefore essential to support sustainable transformation and long-term value creation in the electricity sector.]]>
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