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

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.