Research Article
The Impact of Green Factors and digitalization to Firm Value and Firm Performance: Evidence from Micro, Small and Medium-Sized Enterprises (MSMEs) in Medan City
@INPROCEEDINGS{10.4108/eai.17-9-2024.2352853, author={Pasca Dwi Putra and Andri Zainal and Khairunnisa Harahap and Ivo Selvia Agusti and Hendra Saputra and Fenny Afrida}, title={The Impact of Green Factors and digitalization to Firm Value and Firm Performance: Evidence from Micro, Small and Medium-Sized Enterprises (MSMEs) in Medan City}, proceedings={Proceedings of the 6th International Conference on Innovation in Education, Science, and Culture, ICIESC 2024, 17 September 2024, Medan, Indonesia}, publisher={EAI}, proceedings_a={ICIESC}, year={2025}, month={1}, keywords={green accounting green innovation green entrepreneurship digitalization firm value msme performance}, doi={10.4108/eai.17-9-2024.2352853} }- Pasca Dwi Putra
Andri Zainal
Khairunnisa Harahap
Ivo Selvia Agusti
Hendra Saputra
Fenny Afrida
Year: 2025
The Impact of Green Factors and digitalization to Firm Value and Firm Performance: Evidence from Micro, Small and Medium-Sized Enterprises (MSMEs) in Medan City
ICIESC
EAI
DOI: 10.4108/eai.17-9-2024.2352853
Abstract
The rapid growth of small and medium-sized enterprises (MSMEs) is resulting in intense competition in the market. Various strategies have been developed to gain a competitive edge over other entities. Additionally, the environmental damage caused by excessive resource use and resulting pollution is becoming more severe. Therefore, the aim of this study is to identify the factors that influence the performance of MSMEs through environmental stewardship. The variables used in this research include green accounting, environmental innovation, sustainable entrepreneurship, digitalization, and firm value in relation to the performance of MSMEs in Medan City. This study involved 57 MSMEs in Medan City and hypotheses were tested using SEM. The results of the research indicate that integrating green accounting and environmental innovation practices can enhance company performance, while implementing sustainable business practices can increase the value of MSMEs. The study's conclusions imply that incorporating new environmental technologies and assuming corporate responsibility for the environment are associated with improved organizational performance
