Integration of Enterprise Risk Management and Green Intellectual Capital in Enhancing Sustainability Firm Performance: The Role of Contingency Factors in the Southeast Asian Mining Sector

This study investigates the influence of contingency factors on Enterprise Risk Management (ERM) implementation and its impact on firm sustainability performance in Southeast Asia's mining sector. Green Intellectual Capital (GIC) serves as a moderator, addressing the gap in understanding the role of firm-specific characteristics in enhancing the ERM-sustainability relationship amid environmental uncertainty and industry competition. Using a quantitative approach with Structural Equation Modeling (SEM) based on Partial Least Squares (PLS-SEM), the study analyzes data from 205 mining companies listed on Southeast Asian stock exchanges between 2016 and 2023. Findings reveal that factors such as firm complexity, leverage, size, industry competition, and international diversification influence ERM implementation and corporate performance. ERM acts as a facilitator connecting contingency factors to sustainability, while GIC enhances ERM effectiveness, fostering improved competitiveness. The study recommends sector-specific ERM policies, incentives for GIC adoption, and further research on mediation models. It highlights that ERM, supported by GIC, can help companies address social and environmental issues, contributing to operational sustainability and enhancing stakeholder relationships. This research fills a gap in the application of ERM in Southeast Asia’s mining sector and explores the critical role of GIC in strengthening the link between ERM and sustainability firm performance.