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Sustainable business transformation has become a cornerstone of modern corporate strategy in addressing environmental, social, and economic challenges. The Sustainability-Led Innovation (SLI) approach provides an innovation framework that embeds sustainability principles into business models, fostering organizational adaptability and long-term value creation. This study aims to (1) identify the mechanisms for integrating SLI into sustainable business models, (2) evaluate SLI’s contribution to competitive advantage, and (3) analyze the development of dynamic capabilities to support sustainability initiatives. By combining the Sustainability-Driven Business Model Innovation (SBMI), Dynamic Capability Theory (DCT), and Triple Bottom Line (TBL) frameworks, this qualitative research utilizes in-depth interviews and document analysis of culinary SMEs in Malang. Findings reveal that organizations adopting SLI achieve higher operational efficiency, respond more agilely to regulatory changes, and attract stronger consumer loyalty. These insights underscore the necessity of embedding sustainable innovation strategies into long-term business planning to secure resilient competitive advantage.

According to the Central Statistics Agency for 2019-2021, the harvested area and area of ​​corn plants according to districts/cities, corn production comes from five districts, namely Bualemo district, Gorontalo district, Pohuwato district, Bone Bolango district, North Gorontalo district and Gorontalo city with a total of 377 432.00 ha in 2019, 304 945.00 ha in 2020, and 334 945.00 ha in 2021. By the end of 2022 it is predicted that 340,500 hectares or 27.38 percent of the entire Gorontalo land area will be planted with hybrid corn with a total harvest estimated at 1.61 million tons. This research uses qualitative methods, with primary data sources and secondary data. Corn productivity affects the net income of corn farmers apart from the selling price, where low productivity causes minimal harvest results, so the farmer's income is also low. Apart from that, fluctuations in corn prices are also an obstacle in increasing net income, when corn prices are high farmers get bigger profits. However, when the price of corn falls, farmers' income will also decrease. To increase the competitiveness of corn commodities in Gorontalo Province, it is necessary to invest in improving agricultural technology, opening wider market access, and providing greater government policy support. In this way, corn commodities in Gorontalo Province can become more competitive in both local and international markets.