The objective of this study is to examine the role of adaptive internal control systems as a governance tool for improving the implementation of sustainability-oriented innovation and sustainable performance of higher education institutions, moderated by leadership commitment. The study employs a quantitative explanatory design based on a survey of university leaders, unit heads, internal auditors, and quality assurance system managers in the Special Region of Yogyakarta, Indonesia. Data analysis was conducted using Structural Equation Modeling based on Partial Least Squares (SEM-PLS). The findings indicate that adaptive internal control systems positively affect the implementation of sustainability-oriented innovation and the sustainable performance of higher education institutions. However, sustainability-oriented innovation does not directly improve institutional performance without leadership support. Leadership commitment was found to strengthen the relationship between internal control systems and innovation, as well as the effect of innovation on university performance. These findings underscore that the integration of adaptive control systems and committed leadership is a key factor in achieving sustainable and accountable governance in higher education.
