THE INFLUENCE OF FINANCIAL LITERACY AND SOCIAL CAPITAL ON THE SUSTAINABILITY OF MSMES WITH GREEN INNOVATION AS A MODERATING VARIABLE

Yesi Alfia Efendi, Anggita Langgeng Wijaya, Moh. Ubaidillah

Abstract


This study examines the influence of financial literacy and social capital on the sustainability of micro, small, and medium enterprises (MSMEs), with green innovation as a moderating factor. This study uses quantitative methods and analyzes data with Partial Least Square Structural Equation Modeling (PLS-SEM). The research findings indicate that financial literacy and social capital have a significant positive impact on the survival of MSMEs. Furthermore, green innovation has been shown to be unable to strengthen this relationship, indicating that green innovation is still not a primary focus in MSME practices and is still relatively low and has not become an integral part in building MSME sustainability through their social networks.

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References


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