Accounting Profession Journal (APAJI)
Vol. 8 No. 2 (2026): Accounting Profession Journal (APAJI)

DRIVING SUSTAINABLE OPERATIONAL PERFORMANCE THROUGH GREEN OPERATIONS AND COST EFFICIENCY: THE MEDIATING ROLE OF CORPORATE REPUTATION

Syamrul Syamrul (Universitas Terbuka Nasional)
Nuralfania Nuralfania (Universitas Muhammadiyah)
Prof. Dr. H. Mahfudnumajamuddin, SE.,MM (Universitas Muslim Indonesia)
Prof. Dr. Serlin Serang, SE.,M.Si (Universitas Muslim Indonesia)



Article Info

Publish Date
30 Jul 2026

Abstract

This study examines the relationships between green operations, cost efficiency, corporate reputation, and sustainable operational performance within small and medium-sized enterprises (SMEs) in Indonesia. Using a quantitative approach, data were collected from 195 managerial-level respondents across four major cities and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that green operations have a positive and significant direct effect on sustainable operational performance, highlighting their role as an internal driver of sustainability. In contrast, cost efficiency does not directly influence sustainable performance but significantly affects corporate reputation. Furthermore, corporate reputation is found to have a strong positive effect on sustainable operational performance and mediates the relationship between cost efficiency and performance. However, it does not mediate the relationship between green operations and performance. These results indicate the existence of dual pathways, where green operations enhance performance internally, while cost efficiency operates through reputational mechanisms. The study contributes to the literature by offering a nuanced understanding of how operational strategies translate into sustainability outcomes and provides practical insights for managers in aligning efficiency and environmental initiatives.

Copyrights © 2026






Journal Info

Abbrev

apaji

Publisher

Subject

Economics, Econometrics & Finance

Description

Accounting Profession Journal (APAJI) aims as a medium of exchange of information and scientific works among the teaching staff, alumni, students, practitioners and observers of science in accounting and business. APAJI is that it recognises that informational problems are pervasive in financial ...