Towards Sustainable Excellence: Exploring The Synergy Of Ambidextrous Sustainability And Sustainability Risk Management
Keywords:
Ambidextrous Sustainability, Sustainability Performance, Sustainability Risk Management
Abstract
As the demand for sustainable practices in the manufacturing industry rises alongside global awareness of environmental and social impacts, this study explores the concept of ambidextrous sustainability. It emphasizes the significance of balancing sustainability exploration and exploitation to optimize overall sustainability performance. This research investigates how adopting ambidextrous sustainability effectively enables companies to harness existing resources while innovating for future sustainability. Furthermore, the study highlights the critical role of sustainability risk management as a moderating factor in this relationship. By understanding the dynamics between ambidextrous sustainability and risk management, companies can enhance their sustainability performance and address the challenges posed by evolving environmental regulations and market demands. The findings offer practical insights for organizations striving to incorporate sustainable practices into their operational strategies. Employing a quantitative approach with data collected from large and medium-sized manufacturing companies in the Riau Islands, Indonesia, the research reveals that companies adept at balancing sustainability initiatives are more likely to achieve long-term success and a competitive edge. In conclusion, this study contributes to the discourse on corporate sustainability by illustrating the interplay between strategic sustainability initiatives and risk management, ultimately guiding firms on their path toward sustainable development and improved performance in an increasingly eco-conscious world.
References
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Lukoschek, C. S., Gerlach, G., Stock, R. M., & Xin, K. (2018). Leading to sustainable oganizational unit performance: Antecedents and outcomes of executives’ dual innovation leadership. Journal of Business Research, 91, 266-276. https://doi.org/10.1016/j.jbusres.2018.07.003
Maine, J., Samuelsson, E. F., Kong, E., & Uman, T. (2022). Ambidextrous sustainability, organisational structure and performance in hybrid organisation. Accounting, Auditing & Accountability Journal, 35(3), 734-769. https://doi.org/10.1108/AAAJ-12-2019-4338
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San, O. T., Latif, B., & Vaio, A, D. (2022). GEO and sustainable performance: the moderating role of GTD and environmental consciousness. Journal of Intellectual Capital, 23(7), 38-67. https://doi 10.1108/JIC-10-2021-0290
Severgnini, E., Takahashi, A. R. W., & Abib, G. (2019). Risk and Organizational Ambidexterity: A Meta-Synthesis of a Case Study and a Framework. Brazilian Business Review, 16(5), 470-499. https://doi.org/10.15728/bbr.2019.16.5.4
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Singh, K., Abraham, R., Yadav, J., Agrawal, A. K., & Kolar, P. (2023). Linking CSR and organizational performance: the intervening role of sustainability risk management and organizational reputation. Social Responsibility Journal, 19(10), 1830-1851. https://doi.org/10.1108/SRJ-07-2022-0309
Sirmon, D. G., Hitt, M. A., Ireland, R. D., & Gilbert, B. A. (2011). Resource orchestration to create competitive advantage: breadth, depth, and life cycle effects. Journal of Management, 37(5), 1390-1412. https://doi:10.1177/0149206310385695
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Taha, N., Siam, W., Alshurafat, H., & Al Shbail, M. O. (2024). Does organizational ambidexterity mediate the relationship between intellectual capital and financial performance. Journal of Intellectual Capital, 25(4), 711-743. https://doi.org/10.1108/JIC-04-2023-0072
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Zahid, Z., Zhang, J., Shahzad, M. A., Junaid, M., & Shrivastava, A. (2024). Green synergy: Interplay of corporate social responsibility, green intellectual capital, and green ambidextrous innovation for sustainable performance in the industry 4.0 era. Plos One, 19(8). https://doi.org/10.1371/journal.pone.0306349
Anderson, D. R., & Anderson, K. E. (2009). Sustainability risk management. Risk Management and Insurance Review, 12(1), 25–38. https://doi.org/ 10.1111/j.1540‐6296.2009.01152x.
Androniceanu, A. (2019). Social responsibility, an essential strategic option for a sustainable development in the field of bio-economy. www.amfiteatrueconomic.ro, 21(52), 503-519.
Asiaei, K., Bontis, N., Alizadeh, R., & Yaghoubi, M. (2022). Green intellectual capital and environmental management accounting: natural resource orchestration in favor of environmental performance. Business Strategy and the Environment, 31(1), 76-93. https://doi: 10.1002/bse.2875
Benevene, P., Buonomo, I., Kong, E., Pansini, M., & Farnese, M. L. (2021). Management of Green Intellectual Capital: Evidence-Based Literature Review and Future Directions. Sustainability, 13(15), 8349. https://doi.org/10.3390/su13158349
Borkovskaya, V. G., Roe, R., & Bardenwerper, W. (2018). Sustainability risk management: the case for using interactive methodologies for teaching, training and practice in environmental engineering and other fields. The International Science and Technology Conference, 251-260.
BPS Kepri. (2023). Pertumbuhan Ekonomi Kepulauan Riau Triwulan IV-2023. https://kepri.bps.go.id/id/pressrelease/2024/02/05/1557/pertumbuhan-ekonomi-kepulauan-riau-triwulan-iv-2023.html
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Cancela, B. L., Coelho, A., & Neves M. E. D. (2023). Greening the business: How ambidextrous companies succeed in green innovation through to sustainable development. Business Strategy and the Environment, 32(6):3073–3087. https://doi.org/10.1002/bse.3287
Ciasullo, M. V., Montera, R., Cucari, N., & Polese, F. (2020). How an international ambidexterity strategy can address the paradox perspective on corporate sustainability: Evidence from Chinese emerging market multinationals. Business Strategy and the Environment, 29(5), 2110–2129. https://doi.org/10.1002/bse.2490
Corsi, K., & Arru, B. (2021). Role and implementation of sustainability management control tools: critical aspects in the Italian context. Accounting, Auditing and Accountability Journal, 34(9), 29-56.
Ekobrurianto. (2024). Ekonomi Batam Meroket di Atas 7 Persen, Melebihi Kepri dan Nasional. https://databoks.katadata.co.id/datapublish/2024/01/26/daya-saing-sdm-indonesia-tak-menonjol-di-asia-tenggara
Elkington, J. (1994). Towards the sustainable corporation: win-win-win business strategies for sustainable development. California Management Review, 36(2), 90-100. https://doi:10. 2307/41165746
Engert, S., Rauter, R., & Baumgartner, R. J. (2016). Exploring the integration of corporate sustainability into strategic management: a literature review. Journal of Cleaner Production, 112, 2833-2850.
Freeman, R. E. (1984). Strategic management: A stakeholder approach. London: Pitman Publishing Inc.
Freeman, R. E. (2004). Stakeholder theory and corporate responsibility: some practical questions. Paper presented at the 3rd Annual Colloquium of the European Academy of Business in Society (Vlerick Leuven Gent Management School, Gent).
Freeman, R. E, & Reed, D. L. (1983). Stockholders and stakeholders: a new perspective on corporate governance. California Management Review, 25(3), 88-106.
GRI (2015). G4 Sustainability Reporting Guidelines. Global Reporting Initiative, Amsterdam.
Hafeez, M., Yasin, I., Zawawi, D., Odilova, S., & Bataineh, H. A. (2020). Unleashing the power of green innovations: the role of organizational ambidexterity and green culture in achieving corporate sustainability. European Journal of Innovation Management. 1460-1060. https://doi.org/10.1108/EJIM-04-2023-0274
Holiawati, H., Murwaningsari, E., & Mayangsari, S. (2020). Risk management, corporate governance, and corporate sustainability performance. South East Asia Journal of Contemporary Business, 21(5), 120-125.
Jackson, G. L., Fix, G. M., White, B. S., Cutrona, S. L., Reardon, C. M., Damschroder, L. J., & Nevedal, A. (2024). Diffusion of excellence: evaluating a system to identify, replicate, and spread promising innovative practices across the veterans health administration. Frontiers in Health Services, 3, 1223277.
Jusoh, R., Yahya, Y., Zainuddin, S., & Asiaei, K. (2023). Translating sustainability strategies into performance: does sustainability performance management matter?. Meditari Accountancy Research, 31(2), 258-293. https://doi.org/10.1108/MEDAR-02-2021-1203
Kaboré, S. S., Ngangue, P., Soubeiga, D., Barro, A., Pilabré, A. H., Bationo, N., & Savadogo, L. G. B. (2022). Barriers and facilitators for the sustainability of digital health interventions in low and middle-income countries: a systematic review. Frontiers in Digital Health.
Lau, C. K., & Chen, H. (2022). Stakeholder perceptions on the risk factors, challenges and benefits of business sustainability practices in the Singapore construction industry. Property Management, 40(2), 149-168. https://doi.org/10.1108/PM-02-2021-0014
Lukoschek, C. S., Gerlach, G., Stock, R. M., & Xin, K. (2018). Leading to sustainable oganizational unit performance: Antecedents and outcomes of executives’ dual innovation leadership. Journal of Business Research, 91, 266-276. https://doi.org/10.1016/j.jbusres.2018.07.003
Maine, J., Samuelsson, E. F., Kong, E., & Uman, T. (2022). Ambidextrous sustainability, organisational structure and performance in hybrid organisation. Accounting, Auditing & Accountability Journal, 35(3), 734-769. https://doi.org/10.1108/AAAJ-12-2019-4338
Pemprov Kepri. (2024). Ekonomi Kepri Tahun 2023 Tumbuh 5,20 persen, Tertinggi se-Sumatera. Pemerintah Provinsi Kepulauan Riau. https://kepriprov.go.id/berita/pemprov-kepri/ekonomi-kepri-tahun-2023-tumbuh-5-20-persen-tertinggi-se-sumatera
Peters, K., & Buijs, P. (2022). Strategic ambidexterity in green product innovation: Obstacles and implications. Business Strategy and the Environment, 31(1), 173-193.
Pristiandaru, D. L. (2023). Indonesia Peringkat 4 Pencapaian SDGs Kawasan Asia Tenggara 2023. Kompas.com. https://lestari.kompas.com/read/2023/10/25/160000686/indonesia-peringkat-4-pencapaian-sdgs-kawasan-asia-tenggara-2023
Ridder, E. F. D., Friedericy, H. J., Eijk, A. C. V. D., Dankelman, J., & Jansen, F. W. (2022). A new method to improve the environmental sustainability of the operating room: healthcare sustainability mode and effect analysis (HSMEA). Sustainability, 14(21), 13957.
San, O. T., Latif, B., & Vaio, A, D. (2022). GEO and sustainable performance: the moderating role of GTD and environmental consciousness. Journal of Intellectual Capital, 23(7), 38-67. https://doi 10.1108/JIC-10-2021-0290
Severgnini, E., Takahashi, A. R. W., & Abib, G. (2019). Risk and Organizational Ambidexterity: A Meta-Synthesis of a Case Study and a Framework. Brazilian Business Review, 16(5), 470-499. https://doi.org/10.15728/bbr.2019.16.5.4
Shafique, I., Kalyar, M. N., & Mehwish, N. (2021). Organizational ambidexterity, green entrepreneurial orientation, and environmental performance in SMEs context: examining the moderating role of perceived CSR. Corporate Social Responsibility and Environmental Management, 28, 446-456.
Shahriman, M. F., & Omar, R. (2015). The Triadic Edge: Balancing Innovation, Risk, and Organizational Ambidexterity. Advances in Nonlinear Variational Inequalities, 28(5s), 79-93. https://doi.org/10.52783/anvi.v28.3652
Singh, K., Abraham, R., Yadav, J., Agrawal, A. K., & Kolar, P. (2023). Linking CSR and organizational performance: the intervening role of sustainability risk management and organizational reputation. Social Responsibility Journal, 19(10), 1830-1851. https://doi.org/10.1108/SRJ-07-2022-0309
Sirmon, D. G., Hitt, M. A., Ireland, R. D., & Gilbert, B. A. (2011). Resource orchestration to create competitive advantage: breadth, depth, and life cycle effects. Journal of Management, 37(5), 1390-1412. https://doi:10.1177/0149206310385695
Slagmulder, R., & Devoldere, B. (2018). Transforming under Deep Uncertainty: A Strategic Perspective on Risk Management. Business Horizons, 61(5), 733-743. https://doi.org/10.1016/j.bushor.2018.05.001
Sultan, M., & Nobanee, H. (2022). Green Risk Management in Promoting Business Sustainability Practices and Development. https://www.researchgate.net/publication/359686141
Taha, N., Siam, W., Alshurafat, H., & Al Shbail, M. O. (2024). Does organizational ambidexterity mediate the relationship between intellectual capital and financial performance. Journal of Intellectual Capital, 25(4), 711-743. https://doi.org/10.1108/JIC-04-2023-0072
Tim Redaksi. (2023, August 22). Terungkap! Ini Fakta Penyumbang Terbesar Polusi Udara Jakarta. cnbcindonesia.com. https://www.cnbcindonesia.com/news/20230822092516-4-464937/terungkap-ini-fakta-penyumbang-terbesar-polusi-udara-jakarta
Wijethilake, C., & Lama, T. (2019). Sustainability core values and sustainability risk management: Moderating effects of top management commitment and stakeholder pressure. Business Strategy and the Environment, 28(1), 143-154. https://doi.org/10.1002/bse.2245
Zafina, N. (2024). Indonesia Menuju Green Manufacturing dan SDM Unggul. Harian Informasi Manufaktur. https://www.blog.imajin.id/post/indonesia-menuju-green-manufacturing-dan-sdm-unggul
Zahid, Z., Zhang, J., Shahzad, M. A., Junaid, M., & Shrivastava, A. (2024). Green synergy: Interplay of corporate social responsibility, green intellectual capital, and green ambidextrous innovation for sustainable performance in the industry 4.0 era. Plos One, 19(8). https://doi.org/10.1371/journal.pone.0306349
Published
2025-04-20
How to Cite
Krisyadi, R., Yolanda Masnita, Husna Leila Yusran, & Teddy Jurnali. (2025). Towards Sustainable Excellence: Exploring The Synergy Of Ambidextrous Sustainability And Sustainability Risk Management. International Journal of Business and Quality Research, 3(02), 51-70. https://doi.org/10.63922/ijbqr.v3i02.1711
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