Pro-Environmental MSMES Performance: The Role of Green it Adoption, Green Innovative Behavior, and Financial Accounting Resources

Abstract

Objective: Creative industry MSMEs in Indonesia are currently seen as one of the fields that can help the country's economic recovery after the Covid-19 pandemic. Therefore, it is important to study it more independently so that the business increasing independently. This study is conducted with the aim of identifying factors that can affect sustainable MSMEs performance improvement, namely green IT adoption, green innovative behavior, and green competitive advantage. In addition, researchers also consider the role of financial and accounting resources owned by MSMEs in moderating the effect of green innovative behavior and green competitive advantage in improving sustainable MSME performance. Methods: This study is conducted on owners/managers of MSMEs in the creative batik industry in Special Region of Yogyakarta, Central Java, and West Java Provinces who are selected using a purposive sampling technique. Researchers distribute the questionnaires to respondents which is measured by a 6-point Likert scale. Data is processed using structural equation modeling (SEM) with the Partial Least Square Technique. The target sample is 350 MSMEs. After being identified and recapitulated the full answered questionnaire are 301 MSMEs. Results: The findings of this study are: (1) green IT adoption has positive effect on green innovative behavior, (2) green IT adoption has positive effect on green competitive advantage (3) green innovative behavior has no positive effect on green competitive advantage, (4) financial and accounting resources have no moderate the effect of green innovative behavior on green competitive advantage, (5) Financial and accounting resources have no moderate the effect of green competitive advantage has positive effect on the performance of sustainable MSMEs. Originality: Eploring other drivers of green competitive advantage and sustainable MSME performance, especially from green IT adoption. In addition, this research is also specifically conducted in the context of MSMEs in developing countries which are still experiencing several obstacles and problems in several aspects, such as finance and the lack of maximum implementation of environmentally oriented business practices. Implication: MSMEs implement strategies that are integrated with sustainable pro-environment behavioural practices. MSMEs can motivate employees to have a habit of green behaviour. The adoption of green IT can increase awareness about the importance of sustainability and environmental responsibility in the organisation so that it can provide environmental benefits and can produce more efficiently and cleanly in a sustainable manner In the long run, it can produce a sustainable green competitive advantage Barriers to entry into the creative industry will be overcome when companies can have a high reputation and have sustainable business and environmental performance Although financial and accounting resources do not moderate the effect of green IT adoption and green innovative behavior on green competitive advantage, companies must pay attention and have superior financial and accounting resources to reduce dependence on stakeholders. This is because in the long run it can strengthen the position and competitive advantage.

The Influence of Environmental Accounting Knowledge, Environmental Sensitivity, and CSR Knowledge on Accounting Students Environmental Sustainability Behavior

“…As a result, accounting students at UTM do not feel they have enough control in maintaining environmental sustainability. The results of this study are in accordance with the research of Kusuma et al (2023) which reveals that environmental accounting knowledge is the main factor relevant to maintaining sustainability, but if it is not supported by individual attitudes and perceptions of individual control that are still lacking, then the individual's environmental accounting knowledge has not been able to encourage positive behavior and responsibility for the environment. The results of this study are also in accordance with the research of Arjuni et al (2020) which shows that environmental accounting is often considered greenwashing which results in a lack of individual awareness in minimizing negative impacts on the environment so that it hinders efforts to encourage individual attitudes and control in behaving positively towards the environment.…”

“…Research by Hernawati et al (2020), Eugenio et al (2022), andHariadi (2019) shows that environmental accounting knowledge has a significant effect on proenvironmental behavior. However, the results of this study differ from the research of Kusuma et al (2023), Arjuni et al (2020), andNyahuna &Doorasamy (2022) which revealed that environmental accounting knowledge has no significant effect on proenvironmental behavior. H1: Environmental accounting knowledge affects pro-environmental behavior.…”

“…In line with the results of research by Hernawati et al (2020) and Eugenio et al (2022) proving that environmental accounting knowledge has a significant positive effect on environmental behavior. However, research by Kusuma et al (2023) and Nyahuna & Doorasamy (2022) shows that environmental accounting knowledge has no significant effect on environmental behavior.…”

Comparison of Classification Algorithm and Language Model in Accounting Financial Transaction Record: A Natural Language Processing Approach

“…From these journals, data is flowed back to the user to become various kinds of reports such as General Ledgers, Financial Position Reports etc. [14], depicted in Figure 2.…”

“…This data is labeled one by one by the accountant as an expert. [4], [14]. The collected dataset totals 200 data with output labeling and business sector categories (services, trade, and manufacturing) of MSMEs.…”