Greening MSMEs in Solo Area for Sustainability: in terms of Green Accounting, Corporate Social Responsibility, Financial Performance, and Green Entrepreneurial Orientation
DOI:
https://doi.org/10.59890/ijfbm.v2i6.33Keywords:
Green Accounting, CSR, Financial Performance, Green Entrepreneurial Orientation, Business SustainabilityAbstract
The aim of this research to analyze the effect of green accounting and Corporate Social Responsibility on the sustainability of MSMEs through financial performance and to examine the role of green entrepreneurial orientation as a moderator of the effect of financial performance on the sustainability of MSMEs. Population of 11,157 MSMEs in Solo Raya area was taken purposively, samples that met the criteria and could be analyzed 183 MSMEs engaged in batik, handicrafts, crafts, food and beverages, services, fashion and furniture. Methods of analysis Path analysis, Sobel-test and Absolute Difference Regression test. The results through the direct-effect test (1) green accounting and CSR have a significant positive effect on financial performance, (2) CSR and financial performance have a significant positive effect on the sustainability of MSMEs, but green accounting is not significant. The indirect-effect test results (1) financial performance does not mediate the effect of green accounting on sustainability (2) financial performance mediates the effect of CSR on sustainability (3) green entrepreneurial orientation moderates the effect of financial performance on sustainability.
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