Resource-Based View and Corporate Sustainability Performance

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Corporate Sustainability Performance (CSP) can be defined as a long-term competitive advantage owned by the company in obtaining the company's economic benefits by considering its environmental and social impacts without compromising the needs of the company's stakeholders. The low sustainability performance of companies in Indonesia is caused by a lack of understanding of the importance and benefits of sustainability practices, companies often view costs incurred due to environmental concerns as a reduction in income, limitations on resources (financial and labor), and lack of transparency in reporting due to shortcomings in the consistency of regulatory implementation. This study uses the concept of Resource-Based Theory (RBT) in analyzing and exploring how companies can utilize the resources they have to improve their corporate sustainability performance. The purpose of this study is to determine the effect of company size and intellectual capital on corporate sustainability performance. This research was conducted on manufacturing companies in the consumer goods industry sector listed on the Indonesia Stock Exchange (IDX) for the 2019-2023 period. The sampling method used was a non-probability sampling method with purposive sampling technique and 202 observations were obtained. The data collection method uses documentation techniques. The results showed that company size has a significant positive effect on the company's sustainability performance, while intellectual capital has no significant effect on the company's sustainability performance. The implications of this study indicate that in line with the application of resource-based theory, where large companies are better able to implement good sustainability performance strategies. This research provides input and consideration to the company, regulators (government), and investors in paying attention to the company's sustainability performance by looking at the potential internal resources owned by the company. Future research is expected to use other indicators or measurement models to measure company size and intellectual capital, this aims to be comparable to the results of further research.