Issue

Vol. 12 No. 2 (2025): December

Date Log

Submitted
19 May 2025
Accepted
27 September 2025
Published
28 September 2025

Copyright (c) 2025 Desta Rizky Kusuma, Taufik Hidayat, Sinta Putri Anggraini (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Green Finance and Financial Innovation on Business Sustainability: The Role of Green Innovation

https://doi.org/10.24252/minds.v12i2.56897
Desta Rizky Kusuma
Universitas Ahmad Dahlan, Indonesia
Taufik Hidayat
Universitas Ahmad Dahlan, Indonesia
Sinta Putri Anggraini
Universitas Pembangunan Nasional Veteran Yogyakarta, Indonesia

Corresponding Author(s) : Desta Rizky Kusuma

[email protected]

Jurnal Minds: Manajemen Ide dan Inspirasi, Vol. 12 No. 2 (2025): December

Abstract

This study examines the influence of green finance and financial innovation on business sustainability, with green innovation positioned as a mediating factor in the banking sector of Yogyakarta. The paper advances innovation studies by demonstrating the asymmetric role of green finance and financial innovation in driving sustainability, highlighting how innovation in finance—not merely funding—becomes a decisive lever for sustainable outcomes. Employing a quantitative approach with path analysis, data from 352 respondents were analyzed using Smart PLS 4.0. Findings reveal that while green finance significantly affects business sustainability, it fails to directly stimulate green innovation. In contrast, financial innovation significantly drives both green innovation and sustainability, with partial mediation evident. These insights challenge conventional assumptions that financing alone catalyzes green innovation, underscoring the need for deeper institutional creativity in financial practices. For managers, the study stresses aligning financial innovation with sustainability strategies to accelerate sustainable development goals.

Keywords

Green Finance Financial Innovation Green Innovation Business Sustainability
Kusuma, D. R., Hidayat, T., & Anggraini, S. P. (2025). Green Finance and Financial Innovation on Business Sustainability: The Role of Green Innovation. Jurnal Minds: Manajemen Ide Dan Inspirasi, 12(2), 561–574. https://doi.org/10.24252/minds.v12i2.56897
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Author Biographies

Desta Rizky Kusuma, Universitas Ahmad Dahlan

Management Department

Taufik Hidayat, Universitas Ahmad Dahlan

Management Department

Sinta Putri Anggraini, Universitas Pembangunan Nasional Veteran Yogyakarta

Management Department

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