Exploring corporate business sustainability through green investment in Indonesia using a moderated mediation approach

This study aims to explore the relationship between Green Investment (GI), Good Corporate Governance (GCG), and Corporate Social Responsibility (CSR), and their impact on Corporate Business Sustainability (CBS), with a focus on the mediating roles of GCG and CSR and the moderating effect of Top Management Environmental Concern (TMEC). Data were collected over a period of three months (March–May 2025) using structured surveys distributed to 250 middle- to top-level managers in Indonesian manufacturing and energy sector firms. The research adopts a quantitative approach, utilizing survey data from Indonesian firms across various industries, analyzed using Partial Least Square Structural Equation Modeling (PLS-SEM) to test the proposed hypotheses. This study addresses specific research gaps by examining (i) the simultaneous mediating roles of GCG and CSR in the GI → CBS relationship, (ii) the moderating role of TMEC as an upper-echelon leadership factor in emerging market firms, and (iii) the integration of these mechanisms within a comprehensive Process Macro Hayes framework to capture moderated effects. The key findings reveal that Green Investment positively influences GCG and CSR, which in turn enhance Corporate Business Sustainability. Furthermore, the mediating roles of GCG and CSR are significant in strengthening the relationship between GI and CBS, while TMEC moderates the effectiveness of these relationships, highlighting the critical role of senior management’s environmental concern. This study contributes to the existing literature by providing empirical evidence on the interconnectedness of green investment, corporate governance, and CSR in promoting business sustainability, especially in the context of Indonesian companies. The implications are twofold: for theory, this research enriches the understanding of sustainable business practices through the integration of stakeholder theory and the resource-based view; for practice, it offers managerial insights on the importance of green investment and good governance in achieving long-term business success. This research is original in its comprehensive exploration of these relationships, specifically within the Indonesian business context, and provides valuable insights for companies striving for sustainability in an increasingly environmentally-conscious world.