Green Innovation Moderates the Relationship between Green Finance and Green Competitive Advantage on Sustainability Performance

Authors

  • Irenne Putren Universitas Pamulang, South Tangerang, Indonesia
  • Holiawati Universitas Pamulang, South Tangerang, Indonesia
  • Ani Kusumaningsih Universitas Pamulang, South Tangerang, Indonesia

DOI:

https://doi.org/10.32493/jiaup.v14i2.58159

Keywords:

Banking, Green Competitive Advantage, Green Finance, Green Innovation, Sustainability Performance

Abstract

Global demands for sustainable business practices are driving the Indonesian banking sector to play an active role in the green economy transition. This study examines the influence of green finance and green competitive advantage on sustainability performance, exploring the role of green innovation as a moderating variable. This study uses panel data from 15 commercial banks listed on the Indonesia Stock Exchange (IDX) over a five-year period (2020–2024), resulting in 75 observations. Panel data regression analysis using the Moderated Regression Analysis (MRA) approach was applied to test the research hypotheses. Empirical results indicate that green competitive advantage and green innovation individually have a positive and significant effect on improving sustainability performance. However, green finance was not found to have a significant direct effect. Furthermore, green innovation was shown to be unable to strengthen the relationship between green finance and sustainability performance, nor the relationship between green competitive advantage and sustainability performance. These findings imply that the implementation of green finance in Indonesian banking has not been effectively translated into measurable sustainability performance, and existing green innovation capabilities have not functioned as a reinforcing mechanism for the implemented green strategy. This research provides strategic recommendations for banking management and regulators to integrate green financing policies, differentiation strategies, and innovation programs into a more coherent and measurable sustainability framework.

Author Biography

Irenne Putren, Universitas Pamulang, South Tangerang, Indonesia

Dosen prodi Akuntansi

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Published

2026-07-30

Issue

Vol. 14 No. 2 (2026): Jurnal Ilmiah Akuntansi Universitas Pamulang

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