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. The research results show that green accounting helps MSMEs become more sustainable, meaning that keeping track of financial and environmental information improves efficiency, resource use, and adherence to regulations. Additionally, green intellectual capital, which includes knowledge, innovation, Green intellectual capital, which includes knowledge, innovation, and competence, along with the environment, also has a significant positive influence, indicating the strategic role of human and intellectual resources in integrating environmentally friendly practices. 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 of the 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.