GREEN ACCOUNTING AND GREEN BUSINESS PROCESS MANAGEMENT FOR SUSTAINABLE PERFORMANCE: EVIDENCE FROM COFFEE AGRIBUSINESS INDONESIA
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Abstract
Sustainable development has become an essential issue for small and medium enterprises (SMEs) centered on agribusiness, such as coffee farming operations, because business performance is no longer simply measured by the economic consequences but also by the environmental and social responsibilities. This study analyzes the effect of green accounting and Green Business Process Management (Green BPM) on sustainable performance through financial performance in coffee producers in Sidikalang, Dairi Regency, North Sumatra. The research was quantitative, causal, and associative. The population were coffee farmers in Sidikalang, with a sample of 294 respondents taken by utilizing the Slovin formula with a 5% margin of error. The data were acquired via questionnaires and analyzed using Structural Equation Modelling-Partial Least Squares (SEM-PLS) using a five-point Likert scale. Results reveal that green accounting has a considerable and positive impact on sustainable performance and financial success. Green BPM also has a beneficial and significant influence on sustainability and financial performance. Moreover, financial performance has a favorable and considerable impact on sustainable performance. The mediation test reveals that financial performance mediates the effect of green accounting and Green BPM on sustainable performance. The results suggest that the sustainability of Sidikalang coffee farming is enhanced when farmers are able to monitor environmental costs, develop green business procedures, and transfer these practices into improved financial outcomes. The study has practical implications for coffee producers, farmer organizations, and local stakeholders to enhance the tracking of environmental costs, resource efficiency, waste management, and financial management to support the long-term sustainability of Sidikalang coffee.
Keywords:
Green Accounting Green BPM Financial Performance Sustainable PerformanceReferences
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