Optimizing Corporate Environmental Performance Through Green Process Innovation: An Approach to Business Sustainability

Ira Ningly; Sari Rahmadhani

doi:10.24912/ja.v29i2.2895

Authors

Ira Ningly Accounting Study Program, Sekolah Tinggi Ilmu Ekonomi Totalwin
Sari Rahmadhani Accounting Study Program, Sekolah Tinggi Ilmu Ekonomi Totalwin https://orcid.org/0000-0001-7687-1716

DOI:

https://doi.org/10.24912/ja.v29i2.2895

Keywords: Environmental Management Accounting; Green Transformational Leadership; Green Human Resource Management; Green Process Innovation; Corporate Environmental Performance.

Abstract

This study aims to examine the factors that affect the company's Corporate Environmental Performance (CEP) and examine the role of Green Process Innovation (GPI) on the relationship between Environmental Management Accounting (EMA), Green Transformational Leadership (GTL), and Green Human Resource Management (GHRM) towards CEP. This quantitative research method uses data from the annual reports of raw material sector companies listed on the IDX for 2019-2023. Data were analyzed using path analysis using PLS-SEM. The direct effect results showed that EMA, GTL, and GPI significantly increased CEP, while GHRM did not impact CEP. GTL and GHRM affect GPI, while EMA does not affect GPI. The mediation test results show GPI's role in mediating the relationship between GTL and GHRM towards CEP. These findings indicate the importance of environmentally friendly processes in increasing CEP. This research supports NRBV theory and emphasizes sustainable natural resource management to achieve long-term competitive advantage.

Author Biographies

Ira Ningly, Accounting Study Program, Sekolah Tinggi Ilmu Ekonomi Totalwin

iraningly345@gmail.com

Sari Rahmadhani, Accounting Study Program, Sekolah Tinggi Ilmu Ekonomi Totalwin

sari@stietotalwin.ac.id

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