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The Role of Green Transactions as a Mediator Between the Influence of Green Operations on the Performance of MSMES in Central Java

In: Proceedings of the 4th International Conference on Management and Business (ICoMB 2025)

Author

Listed:
  • Naili Amalia

    (Universitas Diponegoro)

  • Harjum Muharam

    (Universitas Diponegoro)

  • Wisnu Mawardi

    (Universitas Diponegoro)

Abstract

The purpose of this research is to test the role of green transaction mediation in the relationship between green operations and company performance in Micro, Small, and Medium Enterprises (MSMEs) in Central Java Province. In addition, this study explores the application of green operations and green transactions to the effectiveness of MSMEs performance. This study uses a quantitative, survey-based approach. The total number of SMEs in Central Java is 1,457,126. Data were collected through a structured questionnaire distributed to SME owners or managers who have implemented environmentally friendly operational practices. The sampling technique used is purposive sampling; this study has 200 SMEs respondents. The collected data will be analysed using Structural Equation Modelling (SEM) with a Partial Least Squares (PLS) approach. Research results show that, first, a significantly positive relationship was found between Green Operational and Green Transaction (β = 0.310; p = 0.000). Second, the researcher found a positive but not significant relationship between Green Operational and MSME Performance (β = 0.108; p = 0.259). Third, the researcher found a significant negative relationship between Green Transaction and MSME Performance (β = -0.228; p = 0.009). Fourth, the researcher found that green transactions are a significant mediator, with a significant negative relationship between Green Operational and SMEs performance (β = 0.310; p = 0.000). The application of RBV in the context of sustainability for MSMEs must consider the organisation’s and its environment’s readiness, so that the capabilities developed do not become an additional burden that reduces business performance. It is highly recommended that the implementation of the green transaction policy for MSMEs be gradual, based on technological readiness, digital literacy, and infrastructure support. Local governments and SMEs companion institutions. This study evaluates the performance of MSMEs in Central Java through the implementation of green operations and green transactions.

Suggested Citation

  • Naili Amalia & Harjum Muharam & Wisnu Mawardi, 2026. "The Role of Green Transactions as a Mediator Between the Influence of Green Operations on the Performance of MSMES in Central Java," Advances in Economics, Business and Management Research, in: Johannes Maysan Damanik & Md. Mahmudul Alam & Suddin Lada (ed.), Proceedings of the 4th International Conference on Management and Business (ICoMB 2025), pages 327-348, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6239-656-2_27
    DOI: 10.2991/978-94-6239-656-2_27
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