The role of environmental sustainable development in mediating CSR with green innovation strategies in recycling companies in Indonesia
Year: 2026
Type: article
Abstract: This study investigates the mediating role of environmentally sustainable development in the relationship between CSR initiatives and green innovation under the global climate crisis. This study employed a quantitative methodology to gather data from 129 recycling enterprises in diverse Indonesian locations via randomly distributed structured online questionnaires. The mediating influence of environmentally sustainable development on the connection between CSR and green innovation was analyzed using PLS-SEM with SmartPLS software. An empirical study confirms that environmentally sustainable development significantly influences the relationship between CSR and green innovation in Indonesia's recycling sector. The results indicate that sustained commitment and strategy alignment are essential to address costs and implementation challenges in emerging sustainable sectors. The study highlights that strategic natural resource management by firms is crucial for green innovation in response to the ongoing global climate-related catastrophes. This is an amalgamation that is not a common vocabulary in developing countries, especially Indonesia, for recycling industries, which shall involve green innovation, environmental initiative, and sustainable innovation. It provides new insights on sustainable value propositioning and practical implications for practitioners and regulators, with firm capabilities as the main mediating factor. It is also gradually advancing the circular economy and ESG goals that are so essential for sustainable development and green transitions in the economy.
Language: English
Subfield: Marketing
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7204967419