Advancing Sustainable Performance through Islamic-Oriented Digital Transformation: The Mediating Role of Green Intellectual Capital in Indonesia

Abstract

Islamic-oriented digital transformation (IODT) that incorporates sustainability values and ethical principles of Islamic technology can increase organizational sustainable performance (SP), especially for industry /manufacturing sector. This study seeks to investigate the impact of IODT on SP through green intellectual capital (GIC) as a mediating variable. Drawing upon the resource-based view (RBV) theory and knowledge-based view (KBV) theory, this contribution demonstrates how strategic capabilities and knowledge-based resources contribute to long-term sustainability. The quantitative approach in this study uses a survey method. Minimum sample size is calculated by G*Power 3.1, with a total of 155 respondents comprising managers and professionals who are in charge of operations, digital transformation, and sustainability practices in manufacturing or sustainable industrial companies based in Indonesia. Data were collected via structured questionnaires utilizing a Likert scale, and analyzed by means of Partial least squares structural equation modeling (PLS-SEM) using SmartPLS. The findings show that IODT has a positive and significant effect on GIC and leads to improving SP directly. The results revealed that GIC has a significant effect on SP and also mediates the relationship between digital transformation and sustainable performance. These discoveries emphasize the need to connect digital technology with sustainable knowledge assets. From a theoretical perspective, this study adds to the literature by extending the RBV and KBV within the context of Islamic-orient resources digital transformation and sustainability. In practice, it offers empirical guidance for organizations that can utilize digital aptitude and green intellectual resources to reach sustainably balanced development in the Islamic context.