Dinasti International Journal of Economics, Finance & Accounting (DIJEFA)
Vol. 7 No. 4 (2026): Dinasti International Journal of Economics, Finance & Accounting (September - O

Green Leadership and Sustainable Business Performance in MSMEs: The Mediating Role of Green Innovation and the Moderating Role of Organizational Culture

Lukman Hakim (Bina Sarana Informatika University, Jakarta, Indonesia.)
Sabil Sabil (Bina Sarana Informatika University, Jakarta, Indonesia.)
Amin Setio Lestiningsih (Bina Sarana Informatika University, Jakarta, Indonesia.)
Dwiyatmoko Puji Widodo (Bina Sarana Informatika University, Jakarta, Indonesia.)
Sugiyah Sugiyah (Bina Sarana Informatika University, Jakarta, Indonesia.)
Devy Sofyanty (Bina Sarana Informatika University, Jakarta, Indonesia.)



Article Info

Publish Date
23 Sep 2026

Abstract

This study aims to analyze the effect of Green Leadership on Sustainable Business Performance in micro, small, and medium-sized enterprises (MSMEs), with Green Innovation serving as a mediating mechanism and Organizational Culture as a moderating variable. The study adopts a quantitative explanatory research design involving 100 respondents consisting of MSME owners/managers and employees. Data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with the assistance of SmartPLS 4.0. The results indicate that Green Leadership has a positive and significant effect on Green Innovation (β = 0.656; p < 0.001) and Sustainable Business Performance (β = 0.487; p < 0.001). Green Innovation also has a positive and significant effect on Sustainable Business Performance (β = 0.276; p = 0.004). Meanwhile, Green Leadership does not have a significant effect on Organizational Culture (β = 0.166; p = 0.118), and Organizational Culture does not significantly affect Sustainable Business Performance (β = −0.085; p = 0.308). Organizational Culture has a positive and significant direct effect on Green Innovation (β = 0.147; p = 0.048), but does not moderate either the Green Leadership–Green Innovation relationship or the Green Innovation–Sustainable Business Performance relationship. These findings highlight the importance of Green Leadership and Green Innovation in enhancing sustainable business performance among MSMEs.

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Journal Info

Abbrev

DIJEFA

Publisher

Subject

Economics, Econometrics & Finance

Description

The author is invited to submit a paper for Dinasti International Journal of Economics, Finance & Accounting (DIJEFA). Topics related to this journal include but are not limited to: Accounting and financial reporting Audit Accounting management Taxation Corporate finance Personal finance Financial ...