GREEN INVESTMENT, DIGITAL TECHNOLOGY AND DIGITAL FINANCE CAPABILITY ON FINANCIAL SUSTAINABILITY
Main Article Content
Debbi Chyntia Ovami
Sari Wulandari
Junita Putri Rajana Harahap
Noor Marini Haji Abdullah
Noreen Azella Nawi
Suci Agsani
This study aims to examine the role of Digital Finance Capability (DFC) in moderating the influence of green investment and digital technology on the financial sustainability of MSMEs. MSMEs, which play an important role in the Indonesian economy, often face obstacles in accessing technology and financing that can support financial sustainability. The method used in this study is a quantitative approach with a survey of MSMEs that have utilized digital technology and green investment. Primary data will be collected through a questionnaire distributed to MSME actors. The analysis technique used is Structural Equation Modeling (SEM) to test the relationship between the variables studied. The results of the study show that green investment does not have a significant effect on financial sustainability, while digital technology and digital finance capabilities have an effect on financial sustainability. Digital finance capabilities cannot moderate the influence of green investment and digital technology on financial sustainability.
Alqatan, A., Hussainey, K., Hamed, M., & Benameur, K. (2024). Impact of digitalization on reporting, tax avoidance, accounting, and green finance. In Impact of Digitalization on Reporting, Tax Avoidance, Accounting, and Green Finance. IGI Global. https://doi.org/10.4018/9798369316788
Bhatnagar, S., Sharma, D., & Bundel, R. (2024). Green finance and investment index for assessing scenario and performance in selected countries. World Development Sustainability, 5. https://doi.org/10.1016/j.wds.2024.100183
Chen, M., Liu, S., & Gao, L. (2024). Digital finance, financial flexibility and corporate green innovation. Finance Research Letters, 70. https://doi.org/10.1016/j.frl.2024.106313
Ding, Q., Huang, J., & Chen, J. (2023). Does digital finance matter for corporate green investment? Evidence from heavily polluting industries in China. Energy Economics, 117. https://doi.org/10.1016/j.eneco.2022.106476
Du, C., Hu, M., Wang, T., & Kizi, M. D. D. (2024). Research on the Impact of Digital Inclusive Finance on Green Innovation of SMEs. Sustainability (Switzerland), 16(11). https://doi.org/10.3390/su16114700
Fan, W., Wu, H., & Liu, Y. (2022). Does Digital Finance Induce Improved Financing for Green Technological Innovation in China? Discrete Dynamics in Nature and Society, 2022. https://doi.org/10.1155/2022/6138422
Ganlin, P., Qamruzzaman, M. D., Mehta, A. M., Naqvi, F. N., & Karim, S. (2021a). Innovative finance, technological adaptation and smes sustainability: The mediating role of government support during covid-19 pandemic. Sustainability (Switzerland), 13(16). https://doi.org/10.3390/su13169218
Ganlin, P., Qamruzzaman, M. D., Mehta, A. M., Naqvi, F. N., & Karim, S. (2021b). Innovative finance, technological adaptation and smes sustainability: The mediating role of government support during covid-19 pandemic. Sustainability (Switzerland), 13(16). https://doi.org/10.3390/su13169218
Ghozali. (2018). Bab III - Metode Penelitian Metode Penelitian. Metode Penelitian, (9), 22–34.
Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). An Introduction to Structural Equation Modeling. https://doi.org/10.1007/978-3-030-80519-7_1
Hu, S., Zhu, Q., Zhao, X., & Xu, Z. (2023). Digital Finance and Corporate Sustainability Performance: Promoting or Restricting? Evidence from China’s Listed Companies. Sustainability (Switzerland), 15(13). https://doi.org/10.3390/su15139855
Komariyah, F. (2024). Analysis of the Effect of Implementing a Digital Technology-Based Accounting System on the Financial Performance of Msme’s in Indonesia. Transekonomika Akuntansi Bisnis Dan Keuangan, 4(6), 1220–1226. https://doi.org/10.55047/transekonomika.v4i6.805
Li, X., & Yang, J. (2024). The Impact of Digital Finance on the Efficiency of Urban Green Economy. International Journal of Management Science Research, 7(5), 12–16. https://doi.org/10.53469/ijomsr.2024.07(05).03
Moursellas, A., Malesios, C., Skouloudis, A., Evangelinos, K., & Dey, P. K. (2024). Perceived enablers and barriers impacting sustainability of small-and-medium sized enterprises: A quantitative analysis in four European countries. Environmental Quality Management, 33(3), 433–448. https://doi.org/10.1002/tqem.22128
Prihastiwi, D. A., Fatimah, A. N., & Nurcahya, Y. A. (2023). Determinants of Indonesian MSMEs’ Green Investment Choices Towards Inclusive and Sustainable Economic Growth. Iop Conference Series Earth and Environmental Science, 1248(1), 012015. https://doi.org/10.1088/1755-1315/1248/1/012015
Pu, G., Qamruzzaman, Md., Mehta, A. M., Naqvi, F. N., & Karim, S. (2021). Innovative Finance, Technological Adaptation and SMEs Sustainability: The Mediating Role of Government Support During COVID-19 Pandemic. Sustainability, 13(16), 9218. https://doi.org/10.3390/su13169218
Serdarušić, H., Pancić, M., & Zavišić, Ž. (2024). Green Finance and Fintech Adoption Services among Croatian Online Users: How Digital Transformation and Digital Awareness Increase Banking Sustainability. Economies, 12(3). https://doi.org/10.3390/economies12030054
Sinaga, R., & Yunanda, F. (2025). THE SYSTEMATIC LITERATURE REVIEW OF THE IMPACT OF FINTECH IN ENCOURAGING GREEN INNOVATION IN MSMEs (Vol. 18, Number 2).
Sun, J., & Zhang, J. (2024). Digital Financial Inclusion and Innovation of MSMEs. Sustainability (Switzerland), 16(4). https://doi.org/10.3390/su16041404
Wulandari, M. C., Putro, T. R., & Prasetyani, D. (2023a). Digital Adaptation to Performance of SMEs in Surakarta City, Indonesia. International Journal of Multicultural and Multireligious Understanding, 10(5), 238. https://doi.org/10.18415/ijmmu.v10i5.4606
Wulandari, M. C., Putro, T. R., & Prasetyani, D. (2023b). Digital Adaptation to Performance of SMEs in Surakarta City, Indonesia. International Journal of Multicultural and Multireligious Understanding, 10(5), 238. https://doi.org/10.18415/ijmmu.v10i5.4606
Zaid, M. A. K., Khan, M. F., Al-Mekhlafi, A.-W. A.-G. S., Al Koliby, I. S., Saoula, O., Saeed, H. A. E. M., & Mohammad, R. A. (2025a). The future of green finance: how digital transformation and FinTech drive sustainability. Discover Sustainability, 6(1). https://doi.org/10.1007/s43621-025-01356-w
Zaid, M. A. K., Khan, M. F., Al-Mekhlafi, A.-W. A.-G. S., Al Koliby, I. S., Saoula, O., Saeed, H. A. E. M., & Mohammad, R. A. (2025b). The future of green finance: how digital transformation and FinTech drive sustainability. Discover Sustainability, 6(1). https://doi.org/10.1007/s43621-025-01356-w
Zhang, L., Chen, J., Liu, Z., & Hao, Z. (2023). Digital Inclusive Finance, Financing Constraints, and Technological Innovation of SMEs—Differences in the Effects of Financial Regulation and Government Subsidies. Sustainability (Switzerland), 15(9). https://doi.org/10.3390/su15097144
