Abstract
This study addresses the limited empirical evidence on the integrated role of Resource-Based Theory (RBT), Islamic Spiritual Entrepreneurship, and Green Innovation in understanding sustainable business performance in Islamic boarding schools (pesantren). It examines an integrated model in which Electronic Human Resource Management, Strategic Human Resource Management, Knowledge Management, and Organizational Agility are associated with Competitive Advantage, which is further associated with sustainable business performance through Islamic Spiritual Entrepreneurship and Green Innovation. A quantitative cross-sectional survey was conducted among 320 managers of pesantren business units participating in the Ministry of Religious Affairs’ Business Incubation Program in Aceh and Lampung Provinces. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that Electronic Human Resource Management, Strategic Human Resource Management, Knowledge Management, and Organizational Agility are positively and significantly associated with Competitive Advantage, with Knowledge Management showing the largest standardized path coefficient. Competitive Advantage is also positively and significantly associated with sustainable business performance, Islamic Spiritual Entrepreneurship, and Green Innovation. The indirect-effect results further indicate that Islamic Spiritual Entrepreneurship and Green Innovation significantly mediate the association between Competitive Advantage and sustainable business performance. These findings extend the application of RBT by incorporating Islamic values and environmental innovation as contextual mechanisms associated with sustainable business performance in pesantren. Practically, the findings suggest that pesantren managers and policymakers may strengthen digital HR management, strategic organizational capabilities, Islamic entrepreneurship, and green innovation as part of efforts to support competitive and sustainable pesantren-based enterprises.