Abstract This study examines how sustainability practices mediate the effect of Good University Governance (GUG) on university performance by drawing upon stakeholder theory and legitimacy theory. These theories explain that universities, as public institutions, must align their governance practices with stakeholder expectations and societal values to gain legitimacy and improve performance. Using a quantitative approach with Structural Equation Modeling–Partial Least Squares (SEM–PLS), data were collected from 328 respondents comprising lecturers, staff, students, and alumni of universities in West Sumatra, Indonesia. The findings reveal that GUG has a significant direct and indirect effect on university performance through sustainability practices. GUG strongly influences sustainability practices (β = 0.845, p < 0.001), while sustainability practices positively affect university performance (β = 0.382, p < 0.001). The mediation analysis confirms a partial mediating role of sustainability practices in the governance–performance relationship, indicating that effective governance enhances performance both directly and by promoting sustainable institutional behavior. These results highlight the strategic importance of embedding sustainability principles within governance frameworks to achieve long-term institutional excellence. Theoretically, this study contributes by integrating sustainability practices into governance-performance models, enriching the literature on higher education management. Practically, it provides policy insights for university leaders and regulators to strengthen accountability, transparency, and sustainability orientation as core elements of institutional governance.
Bahari et al. (2026) studied this question.