Integration of Green Accounting and Green Intellectual Capital as a Sustainability Strategy for MSMEs in Medan City

Abstract

This study aims to analyze the influence of green accounting and green intellectual capital on the sustainability of micro, small, and medium enterprises (MSMEs) in Medan City. The quantitative approach was used with the survey method against 120 MSME actors operating in the trade, services, and manufacturing sectors. Data collected through a structured questionnaire were analyzed using multiple linear regression for hypothesis testing research. Research results show that green accounting has a significant positive effect on the sustainability of MSMEs, which indicates that recording and reporting finance-based environments push efficiency, source power, and compliance regulations. Meanwhile, that is, green intellectual capital, which includes knowledge, innovation, and competence, and the environment also has a positive significant influence, indicating the strategic role of the source of human and intellectual power in integrating practical friendly environments. Findings This data confirms that the combination of the application of green accounting and the optimization of green intellectual capital is able to increase power competition at a time of sustainability for MSME businesses. Implications study This encourages MSME actors, policymakers, and institutions to develop training programs and incentives that integrate accounting with green and intellectual capital management in their environments.