Articles
Abstract
This study investigates the drivers of bank business sustainability (BBS) in Indonesia by examining the roles of green strategic leadership capability (GSLC) and green intellectual capital (GIC), with green finance (GF) as a mediating mechanism. Using data from 339 strategic-level bank leaders, this study applies Partial Least Squares Structural Equation Modeling (PLS-SEM) to test a resource-based framework in an emerging economy context. The results show that GSLC, GIC, and GF significantly enhance BBS, with GSLC emerging as the strongest predictor. Furthermore, GF partially mediates the relationships between GSLC–BBS and GIC–BBS, confirming its role as a strategic channel through which intangible resources are transformed into observable sustainability outcomes. This study contributes to the literature by extending the resource-based view (RBV) through a resource–practice–performance pathway, demonstrating how leadership capability and intellectual capital are operationalized via green finance practices. The findings also clarify the distinction between sustainability outcomes (BBS), enabling mechanisms (GF), and internal capabilities (GSLC and GIC), addressing conceptual ambiguity in prior studies. Practically, the results suggest that banks in emerging markets should prioritize leadership-driven sustainability strategies and strengthen knowledge-based resources to effectively implement green finance. While the sample is dominated by large and state-owned banks, the findings offer relevant insights for similar institutional environments. Future research is encouraged to explore cross-group variations and incorporate regulatory dynamics to further validate the model.
