Authors - Nur Fajrina, Felina C. Young, Rosita Widya Putri Abstract - This study investigates the relationships among Stakeholder Integration (STI), Digital Transformation Capability (DTC), Absorptive Capacity (AEC), and Sustainable Supply Performance (SSP) within a knowledge-intensive supply chain context. Employing a quantitative methodology alongside Partial Least Squares Structural Equation Modeling (PLS-SEM), data were collected from 262 respondents involved in strategic and operational functions. The results reveal that stakeholder integration significantly enhances digital transformation capability, thereby strengthening absorptive capacity. Both digital transformation capability and absorptive capacity have direct positive effects on sustainable sup-ply performance. However, stakeholder integration does not directly influence sustainable supply performance. Instead, its effect becomes significant only when mediated by absorptive capacity, indicating that internal knowledge assimilation and utilization mechanisms are essential for translating collaborative efforts into sustainability outcomes. The results highlight the critical role of dynamic capabilities in accomplishing sustainable supply performance, particularly in environments characterized by digital transformation and stakeholder complexity. The study contributes theoretically by integrating stakeholder theory and dynamic capability perspectives, emphasizing absorptive capacity as a key mediating mechanism. The results suggest that firms should complement external stakeholder collaboration with investments in digital infrastructure and organizational learning systems to enhance long-term sustainability performance.
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