Purpose: This study examines whether sustainability, green innovation, and digital transformation contribute to firm value creation and whether institutional ownership and board independence strengthen these relationships.
Research Methodology: This study contributes to the literature by examining sustainability, green innovation, and digital transformation within an integrated value creation framework and by highlighting the moderating roles of two corporate governance mechanisms in the Indonesian manufacturing.
Results: Sustainability and green innovation have positive and significant effects on firm value, while digital transformation has no significant direct effect. Institutional ownership strengthens the effects of sustainability and green innovation, whereas board independence strengthens the effects of sustainability, green innovation, and digital transformation.
Conclusions: The findings suggest that sustainability and green innovation directly enhance firm value, while the value contribution of digital transformation depends on governance. Institutional ownership provides selective moderation, whereas board independence strengthens the value relevance of all three strategic initiatives, highlighting the importance of governance in firm value creation.
Limitations: The study focuses on manufacturing companies listed on the Indonesia Stock Exchange, which may limit the generalizability of the findings to other industries.
Contributions: This study integrates sustainability, green innovation, digital transformation, and corporate governance into a unified value-creation framework. It reveals distinct governance roles: institutional ownership selectively enhances the value of sustainability and green innovation, whereas board independence strengthens all three strategic initiatives. Empirically, it demonstrates how Indonesian manufacturing firms' governance conditions shape these initiatives' impact on firm value.