Environmental Literacy and Green Accounting in MSMEs
Keywords:
environmental literacy, green accounting, msmes, resource-based viewAbstract
This study aims to analyze the relationship between environmental literacy and the application of green accounting principles in Micro, Small, and Medium Enterprises (MSMEs). Using a quantitative approach and survey method, 400 MSME owners/managers were selected. Purposive sampling was used to select businesses that had been operating for at least three years and had a prior awareness of environmental issues. Data analysis was performed using linear regression and correlation tests using SPSS 25 software. The results indicate that environmental literacy has a positive and significant effect on the implementation of green accounting. This finding confirms that environmental literacy is a strategic, knowledge-based resource consistent with the Resource-Based View (RBV) perspective, thus providing a competitive advantage for MSMEs in the transition to a green economy. This study provides theoretical contributions by expanding the application of RBV to sustainability accounting, as well as practical contributions for MSMEs and policymakers in designing environmental literacy improvement programs to accelerate the adoption of green accounting.
References
Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. https://doi.org/10.1016/0749-5978(91)90020-T
Ajzen, I. (2002). Perceived behavioral control, self-efficacy, locus of control, and the theory of planned behavior. Journal of Applied Social Psychology, 32(4), 665-683. https://doi.org/10.1111/j.1559-1816.2002.tb00236.x
Almeida, R., et al. (2022). Sustainability accounting in small businesses: Challenges and opportunities. Sustainability Accounting, Management and Policy Journal, 14(3), 78-94.
Alrazi, B., De Villiers, C., & Van Staden, C. J. (2021). The environmental disclosures of the electricity generation industry: A global perspective. Journal of Cleaner Production, 298, 126804. https://doi.org/10.1016/j.jclepro.2021.126804
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108
Boiral, O., Heras-Saizarbitoria, I., & Brotherton, M. C. (2022). Assessing and improving the quality of sustainability reports: The auditors’ perspective. Business Strategy and the Environment, 31(1), 418-435. https://doi.org/10.1002/bse.2901
Byzzanthi, V., & Ermawati, W. (2021). Green accounting, financial literacy, and financial performance: A case study on Sukaregang Tannery Industrial Center in Garut, West Java Indonesia.
Dangelico, R. M., & Pontrandolfo, P. (2015). Being ‘green and competitive’: The impact of environmental actions and collaborations on firm performance. Business Strategy and the Environment, 24(6), 413-430. https://doi.org/10.1002/bse.1828
Deegan, C. (2002). Introduction: The legitimising effect of social and environmental disclosures. Accounting, Auditing & Accountability Journal, 15(3), 282-311. https://doi.org/10.1108/09513570210435852
Dowling, J., & Pfeffer, J. (1975). Organizational legitimacy: Social values and organizational behavior. Pacific Sociological Review, 18(1), 122-136. https://doi.org/10.2307/1388226
Firmansyah, A., & Masruroh, N. A. (2021). SMEs’ environmental literacy and green innovation adoption: Evidence from Indonesia. Journal of Small Business Management, 59(S1), S102-S128. https://doi.org/10.1111/jsbm.12524
Fishbein, M., & Ajzen, I. (2010). Predicting and changing behavior: The reasoned action approach. Psychology Press.
Ghisetti, C., Mancinelli, S., Mazzanti, M., & Zoli, M. (2017). Financial barriers and environmental innovations: Evidence from EU manufacturing firms. Ecological Economics, 137, 180-193. https://doi.org/10.1016/j.ecolecon.2017.03.001
Gunarathne, N., & Lee, K. H. (2021). Institutional pressures and corporate environmental management maturity: Does managerial attitude matter? Sustainability Accounting, Management and Policy Journal, 12(3), 483-508. https://doi.org/10.1108/SAMPJ-06-2019-0228
Hart, S. L. (1995). A natural-resource-based view of the firm. Academy of Management Review, 20(4), 986-1014. https://doi.org/10.5465/amr.1995.9512280033
Herremans, I. M., Nazari, J. A., & Mahmoudian, F. (2016). Stakeholder relationships, engagement, and sustainability reporting. Journal of Business Ethics, 138(3), 417-435. https://doi.org/10.1007/s10551-015-2634-0
Jalaludin, D., Sulaiman, M., & Ahmad, N. N. N. (2021). Environmental management accounting practices and environmental performance: Evidence from Malaysia. Asian Journal of Sustainability and Social Responsibility, 6(1), 1-18. https://doi.org/10.1186/s41180-021-00050-9
Khan, S. A. R., Yu, Z., & Umar, M. (2022). How environmental awareness and corporate social responsibility practices benefit the enterprise? An empirical study in the context of emerging economy. Management of Environmental Quality, 33(1), 1-19. https://doi.org/10.1108/MEQ-02-2021-0039
Larrán Jorge, M., Herrera Madueño, J., & Martínez-Martínez, D. (2018). Competitiveness and environmental performance in Spanish small and medium enterprises: Is there a direct link? Journal of Cleaner Production, 101, 26-37. https://doi.org/10.1016/j.jclepro.2015.03.027
Latan, H., Jabbour, C. J. C., de Sousa Jabbour, A. B. L., Wamba, S. F., & Shahbaz, M. (2018). Effects of environmental strategy, environmental uncertainty and top management’s commitment on corporate environmental performance: The role of environmental management accounting. Journal of Business Ethics, 148(2), 423-441. https://doi.org/10.1007/s10551-016-3028-7
Lindblom, C. K. (1994). The implications of organizational legitimacy for corporate social performance and disclosure. Critical Perspectives on Accounting, 5(1), 71-83. https://doi.org/10.1006/cpac.1994.1006
Nugraheni, P., Khasanah, E. N., & Kurniasih, D. (2023). Green accounting implementation in SMEs: Barriers and drivers. Journal of Accounting in Emerging Economies, 13(1), 1-22. https://doi.org/10.1108/JAEE-05-2022-0134
OECD. (2022). SMEs and environmental sustainability: Overcoming barriers to green transition. OECD Publishing. https://doi.org/10.1787/19934257
Paul, J., Modi, A., & Patel, J. (2016). Predicting green product consumption using theory of planned behavior and reasoned action. Journal of Retailing and Consumer Services, *29*, 123-134. https://doi.org/10.1016/j.jretconser.2015.11.006
Qian, W., Hörisch, J., & Schaltegger, S. (2021). Environmental management accounting and its effects on carbon management and disclosure quality. Accounting, Auditing & Accountability Journal, 34(7), 1-27. https://doi.org/10.1108/AAAJ-03-2020-4457
Revell, A., Stokes, D., & Chen, H. (2010). Small businesses and the environment: Turning over a new leaf? Business Strategy and the Environment, 19(5), 273-288. https://doi.org/10.1002/bse.628
Sari, N., et al. (2021). Environmental disclosure and financial performance in SMEs. Journal of Environmental Management, 30(4), 205-220.
Schaltegger, S., & Burritt, R. (2017). Contemporary environmental accounting: Issues, concepts and practice. Greenleaf Publishing.
Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20(3), 571-610. https://doi.org/10.5465/amr.1995.9508080331
Susanto, A., Meiryani, M., & Soepriyanto, G. (2022). Barriers to green accounting implementation in Indonesian SMEs. Journal of Sustainability Science and Management, 17(1), 1-15. https://doi.org/10.46754/jssm.2022.01.001
Tilling, M. V., & Tilt, C. A. (2010). The edge of legitimacy: Voluntary social and environmental reporting in Rothmans' 1956-1999 annual reports. Accounting, Auditing & Accountability Journal, 23(1), 55-81. https://doi.org/10.1108/09513571011010600
Wijaya, A., & Suhardjanto, D. (2020). Green accounting practices in Southeast Asian SMEs: A systematic review. Asian Journal of Business and Accounting, 13(2), 1-28. https://doi.org/10.22452/ajba.vol13no2.1
Yana, E., Febianti, Y. N., & Fury, N. S. W. (2025). Enhancing Green Accounting Literacy Through The Development of Professional Pdf-Assisted e-Books. Jambura Economic Education Journal, 7(1), 59-74.
Yuriev, A., Boiral, O., Francoeur, V., & Paille, P. (2020). Overcoming the barriers to pro-environmental behaviors in the workplace: A systematic review. Journal of Cleaner Production, 246, 118960. https://doi.org/10.1016/j.jclepro.2019.118960
Yusoff, H., Darus, F., & Rahman, S. A. (2019). Environmental literacy and green IT readiness: Evidence from Malaysian SMEs. Journal of Cleaner Production, 224, 1-12. https://doi.org/10.1016/j.jclepro.2019.03.237
Zhang, J., Liang, G., & Feng, T. (2023). Simplified green accounting for SMEs: A framework and case study. Sustainability, 15(3), 1-18. https://doi.org/10.3390/su15031842
Published
How to Cite
Issue
Section
Copyright (c) 2025 Samirah Dunakhir, Farhan Dwinanda Hanisyahputra, Lukman Dahlan, Fina Ruzika Zaimar
This work is licensed under a Creative Commons Attribution 4.0 International License.
