Green innovation and Company Performance Mediated by Political Powers: Study in Capital City in Indonesia

Abstract

This study examines the indirect effect of green innovation on company performance through the political connections of commissioners in the capital city. This study uses 490 companies in Indonesia that are engaged in manufacturing listed on the stock exchange in 2017-2019 as samples. The analytical method used is WarpPls in testing the existing hypotheses. This research partially mediates the effect of green innovation on company performance through the political connections of commissioners in the capital city. This study provides information that the impact of green innovation on company performance mediates the political relations of capital city commissioners. The research results partially mediate, meaning that in a developing country, Indonesia is still dominated by political power in the capital city.