Pro-Environmental MSMES Performance: The Role of Green it Adoption, Green Innovative Behavior, and Financial Accounting Resources
Authors: Kusuma Hadri , Muafi Muafi , Kholid Muamar Nur 
Published: August 2023

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.