The Impact of Digital and Green Innovation Strategy on Citizen Trust Towards Sustainable Financial Performance of Local Government

Abstract

The unit of analysis in this study is local government data from Indonesia. The goal of this research is to identify the impact of fiscal stress and citizen trust on digital and green innovation strategies. This study also seeks to as certain the impact of digital and green innovation strategies on the impact of fiscal stress and citizen trust on sustainable financial performance. This research uses a descriptive verification method in conjunction with a quantitative approach. Path analysis is an analytical method used in the processing of statistical data. The research samples in this study are 148 Regional Apparatus Organizations (OPD) from East Java Province. The tests showed that fiscal pressure and citizen trust have a significant impact on digital and green innovation strategies. The test results also show that fiscal stress and digital and green innovation strategies have a significant effect on sustainable financial performance, whereas citizen trust has no significant effect on sustainable financial performance. Simultaneously, digital and green innovation strategy are critical for mitigating the impact of fiscal stress and increasing citizens' trust sustainable financial performance.