CAPITAL INTENSITY, GREEN INNOVATION DAN INFORMATION TECHNOLOGY SOPHISTICATION TERHADAP SUSTAINABLE BUSINESS PERFORMANCE

Abstract

This research investigates the effects of capital intensity, green innovation, and information technology (IT) sophistication on sustainable business performance among manufacturing companies listed on the Indonesia Stock Exchange in 2025. The central research question addresses whether these variables have partial or simultaneous impacts on sustainable business performance. Utilizing a quantitative causal methodology, the study analyzes secondary data obtained from annual and sustainability reports. The study selected 43 manufacturing companies through purposive sampling and analyzed the data using multiple linear regression in IBM SPSS. The results indicate that green innovation has a positive and significant effect on sustainable business performance, while capital intensity and IT sophistication do not significantly influence it. These findings identify green innovation as a primary determinant of sustainable business performance. Theoretically, the study advances the literature by integrating financial and environmental performance dimensions. Practically, the results guide corporate management and policymakers in developing effective, transparent strategies to enhance sustainable business performance.

Keywords: sustainable business performance, capital intensity, green innovation,  IT Sophistication.