The Role of Corporate Agility in Advancing Sustainable Strategy: Examining the Influence of Shareholder Activism and Board Commitment

Henri Harapan Saragih (), Muhammad Saifi, Nila Firdausi Nuzula and Saparila Worokinasih
Additional contact information
Henri Harapan Saragih: Faculty of Administrative Science, Brawijaya University, Malang 65145, Indonesia
Muhammad Saifi: Faculty of Administrative Science, Brawijaya University, Malang 65145, Indonesia
Nila Firdausi Nuzula: Faculty of Administrative Science, Brawijaya University, Malang 65145, Indonesia
Saparila Worokinasih: Faculty of Administrative Science, Brawijaya University, Malang 65145, Indonesia

Sustainability, 2024, vol. 16, issue 24, 1-18

Abstract: This study investigates the impact of shareholder activism and board of directors (BOD) commitment on corporate agility and sustainability strategy within Indonesia’s inland container depot (ICD) industry. Data from 147 ICDs were collected using a census sampling method and a standardized questionnaire with a Likert scale. Using a quantitative explanatory research design, the data were analyzed using Structural Equation Modeling (SEM) via WarpPLS. The findings show that both shareholder activism and BOD commitment have a significant positive effect on corporate agility. Additionally, shareholder activism and corporate agility positively influence sustainability strategy, while BOD commitment has no direct significant impact on sustainability strategy. However, corporate agility mediates the relationship between BOD commitment and sustainability strategy, suggesting that BOD commitment enhances corporate agility, which, in turn, fosters the integration of sustainable practices. These results highlight the critical roles of shareholder activism and BOD commitment in enhancing corporate agility and driving sustainable practices within Indonesia’s ICD sector.

Keywords: shareholder activism; board of directors commitment; corporate agility; sustainable strategy; inland container depot (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/16/24/10861/pdf (application/pdf)
https://www.mdpi.com/2071-1050/16/24/10861/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:16:y:2024:i:24:p:10861-:d:1541723

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().