NRBV's strategic capabilities and SDG disclosure: Does this disclosure enhance financial performance?

Avininda Dewi Nindiasari, Fajar Satriya Segarawasesa and Aditya Pandu Wicaksono

Asian Review of Accounting, 2026, 1-29

Abstract: PurposeThis study aims to extend the sustainable development goals (SDG) disclosure literature by examining the influence of natural resource-based view (NRBV) strategic capabilities, namely pollution prevention, green product innovation and environmental certification, on SDG disclosure practices among Indonesian companies. It also investigates the association between this disclosure and financial performance.Design/methodology/approachThis study uses Indonesian companies listed in Indonesia Stock Exchange (IDX) for the period 2021 to 2024, comprising 1,256 company-year observations from 314 companies. All data for the variables are collected from annual and sustainability reports and analyzed using panel regression.FindingsThis study demonstrates that NRBV-based strategic capabilities, such as pollution prevention, green product innovation and environmental certification, significantly enhance companies' SDG disclosure. However, such disclosure is associated with lower financial performance due to the substantial costs required to support SDG-related activities.Practical implicationsThe findings of this study provide practical implications for regulators as the commitment for achieving the SDG can be actualized through stricter sustainability regulations. It can be used to encourage companies to integrate strategic capabilities provided by NRBV into business operations.Originality/valueThis study extends the existing literature on SDG disclosure by shifting the focus from commonly examined governance and ownership determinants to the role of NRBV's strategic capabilities. It further contributes by examining the implications of SDG disclosure for companies' financial performance within an emerging market country context like Indonesia. This study also provides complementary evidence to prior studies predominantly conducted in developed countries.

Keywords: SDG disclosure; Pollution prevention; Green product innovation; Natural resource-based view; Financial performance (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eme:arapps:ara-11-2025-0404

DOI: 10.1108/ARA-11-2025-0404

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