Entrepreneurship and ESG Convergence: Improving Business Performance in Emerging Markets
DOI:
https://doi.org/10.22441/jurnal_mix.2026.v16i1.007Keywords:
Entrepreneurial Orientation, ESG Investments, Company PerformanceAbstract
Objectives: This study aims to examine the relationship between entrepreneurial orientation (EO), environmental, social and governance (ESG), and corporate business performance (CBP) in multinational companies operating in Indonesia.
Methodology: The research method used is quantitative. This data was obtained from 50 managers who completed the survey through Google Forms. The collected data is analyzed using PLS to verify the relationships between variables.
Findings: Results show that EO and ESG investments increase GST positively and significantly. In addition, ESG investments can also act as intermediaries that reinforce the positive effects of executive orders on GST.
Conclusion: This study shows that multinational companies in developing countries increase profits while supporting sustainability goals. This can be achieved by aligning the company's innovation strategy with ESG principles. Businesses must not only have profits but also the ability to create sustainable long-term growth. In addition, the results of this study can also serve as practical guidance for business leaders and policymakers in encouraging sustainable development and strengthening entrepreneurship.
References
Andriani, D., Char, TIR, and Susanti, A. (2024). Entrepreneurial Orientation and Performance: Empirical Evidence from Indonesia. Journal of Entrepreneurship and Business Research, Vol. 12, No. 1, pp. 23–35.
Idmusch, M., Guley, G., & Ergun, K. (2022). The impact of ESG performance on the company's value and profitability. Istanbul Stock Exchange Review, Vol. 22, S119–S127. https://doi.org/10.1016/j.bir.2022.11.006
Cho, H.J., & Lee, J.N. (2018). Entrepreneurial orientation, corporate sustainability, and corporate performance: the role of dynamic competencies. Asia-Pacific Journal of Management, Vol. 35, No. 4, pp. 905–924.
Eccles, R.G., Klimenko, S. (2019). Investor Revolution: Shareholders are starting to take sustainability seriously. Harvard Business Review, Vol. 97, No. 3, pp. 106–116.
Frank, H., Kessler, A., & Fink, M. (2010). Entrepreneurial orientation and business performance: A reproductive study. Schmallenbach Business Review, Vol. 62, No. 2, pp. 175–198.
Friede, G., Busch, T., & Bassen, A. (2015). ESG and Business Performance: Aggregate evidence from more than 2000 empirical studies. Journal of Sustainable Business & Investment, 5(4), 210–233.
Khan, M., Serafaim, G., & Yoon, A. (2016). Corporate sustainability: the first proof of materiality. Accounting Review, Vol. 91, No. 6, pp. 1697–1724.
Rampkin, G.G., DES, G.G. (1996). Clarify the concept of entrepreneurship and connect it to performance. Review of the Academy of Management, Vol. 21, No. 1, pp. 135–172.
Moskowitz, M.R. (1972). How to choose socially responsible stocks. Review of Business and Society, Vol. 1, pp. 71–75.
Rogers, S. (2023). What is ESG investing and is it profitable? https://finmasters.com/esg-investing/#gref
Singh, R., & Tucker, P. (2024). Empirical analysis of sustainable startups: Integrating environmental, social, and governance (ESG) into high-growth business strategies. Brazilian Journal of Production Operations & Management, Vol. 21, No. 3, 1810.
Soares, A.M., & Perrin, M.G. (2019). The impact of entrepreneurial orientation on performance: a mediation model based on absorption capacity. Journal of Business Research, Vol. 94, pp. 69–79.
Tian, T., & Chen, N. (2024). How does entrepreneurship drive a company's ESG performance? International Financial Analysis Review, Vol. 96, 103557 https://doi.org/https://doi.org/10.1016/j.irfa.2024.103557
Xie, H., Qin, Z., & Lee, J. (2024). Corporate ESG Entrepreneurship and Performance: A Case Study of China's A-share Listed Companies. Published in Sustainability (Vol. 16, No. 18, page 7964). https://doi.org/10.3390/su16187964
Yoon, S., Solomon, G. (2017). Entrepreneurial Orientation and Corporate Performance: The Role of Organizational Learning Competencies. International Journal of Entrepreneurial Behavior and Research, Vol. 23, No. 3, pp. 356–375.
Downloads
Published
How to Cite
Issue
Section
License
The copyright to this article is transferred to Universitas Mercu Buana (UMB) if and when the article is accepted for publication. The undersigned hereby transfers any and all rights in and to the paper including without limitation all copyrights to UMB. The undersigned hereby represents and warrants that the paper is original and that he/she is the author of the paper, except for material that is clearly identified as to its original source, with permission notices from the copyright owners where required. The undersigned represents that he/she has the power and authority to make and execute this assignment.
We declare that this paper has not been published in the same form elsewhere.
Furthermore, I/We hereby transfer the unlimited rights of publication of the above mentioned paper in whole to UMB. The copyright transfer covers the right to reproduce and distribute the article, including reprints, translations, photographic reproductions, microform, electronic form (offline, online) or any other reproductions of similar nature.
The corresponding author signs for and accepts responsibility for releasing this material on behalf of any and all co-authors. This agreement is to be signed by at least one of the authors who have obtained the assent of the co-author(s) where applicable. After submission of this agreement signed by the corresponding author, changes of authorship or in the order of the authors listed will not be accepted.
Retained Rights/Terms and Conditions
Although authors are permitted to re-use all or portions of the Work in other works, this does not include granting third-party requests for reprinting, republishing, or other types of re-use.
