The impact of green innovation-based and sustainable leadership on sustainability performance: a case of Indonesian furniture manufacturing industry

Purpose The purpose of this research is to examine the influence of environmental regulation, green organizational culture, market focus, and sustainable leadership on green innovation and their subsequent impact on sustainability performance in the Indonesian furniture manufacturing industry. Design/methodology/approach This study uses a quantitative research approach with data collected through a structured survey distributed to employees in selected furniture manufacturing firms in Indonesia. The data were analyzed using Structural Equation Modeling using Partial Least Squaresto test measurement reliability and the structural relationships among variables. Findings The analysis reveals that all proposed relationships are statistically significant. Environmental regulation, green organizational culture, market focus, and sustainable leadership each have a positive effect on green innovation. Additionally, green innovation and sustainable leadership both significantly enhance sustainability performance. Sustainable leadership also moderates the relationship between green innovation and sustainability performance, strengthening its positive effect. Research limitations/implications This study is limited to the furniture manufacturing sector in one region of Indonesia and focuses on a cross-sectional analysis, which may not fully capture long-term dynamics. Originality/value This research offers a novel integrated model linking strategic and cultural drivers to green innovation and sustainability performance, providing theoretical and managerial insights relevant for resource-intensive industries in emerging economies.