Financial Performance SME’s: Reputation and Environmental as Moderation

Main Article Content

Luh Putu Virra Indah Perdanawati
Ni Putu Yuliana Ria Sawitri

Abstract

This investigation hence, plans to give proof from a non-industrial nation's point of view
and above all from the stance of SMEs perceiving how quick these organizations are
ascending in non-industrial nations. In particular, this investigation plans to give an
itemized viewpoint with an end goal to associating existing writing holes through (a)
exposing the impact of green production practices, environmental performance, firm
reputation, and financial performance(b) also establishing the influence of adopting
green production practices on firm reputation, financial and environmental
performance and (c) assessing how firm reputation and environmental performance
affect financial performance.
Through reaching producing relationship, around 2,000 assembling SMEs and their
contacts were acquired. By utilizing the Krejcie and Morgan's examining strategy, 100
SMEs were arbitrarily chosen. This investigation adopting an exploratory strategy
received a study research plan and a quantitative way to deal with information
examination explicitly utilizing partial least square structural equation modelling (PLSSEM) procedure in making understandings because of its reasonableness for prescient
examination models.
The result of this study is Green Production has a positive and significant effect on Firm
Reputation, Environmental Performance and Financial Performance. Financial
Reputation has a positive and significant effect on Financial Performance.
Environmental Performance has a positive and significant effect on Financial Performance. Environmental Performance mediates the relationship of Green Productionin a
positive and significant way to Financial Performance. Firm Reputation mediates the
relationship of Green Production in a positive and significant way to Financial Performance.

Article Details

How to Cite
Luh Putu Virra Indah Perdanawati, & Ni Putu Yuliana Ria Sawitri. (2021). Financial Performance SME’s: Reputation and Environmental as Moderation. Fair Value: Jurnal Ilmiah Akuntansi Dan Keuangan, 4(3), 686–697. https://doi.org/10.32670/fairvalue.v4i3.729
Section
Articles

References

Alayón, C., Säfsten, K., & Johansson, G. (2017). Conceptual sustainable production

principles in practice: do they reflect what companies do? Journal of Cleaner

Production, 141, 693-701.

Awan, U. (2017). Mediation analysis of environmental training: Perceived stakeholder

pressure and environmental supply chain management practices. International

Journal of Research Studies in Management, 6(1), 1–21.

Ayyagari, M., Beck, T. and Demirguc-Kunt, A. (2007), “Small and medium enterprises

across the globe”, Small Business Economics, Vol. 29 No. 4, pp. 415-434

Baah, C., Jin, Z., & Tang, L. (2020). Organizational and regulatory stakeholder pressures

friends or foes to green logistics practices and financial performance:

Investigating corporate reputation as a missing link. Journal of Cleaner

Production, 247, 119125

Bachmann, J.-T., Engelen, A. and Schwens, C. (2016), “Toward a better understanding

of the association between strategic planning and entrepreneurial orientation –

the moderating role of national culture”, Journal of International Management,

Vol. 22 No. 4, pp. 297-315.

Boccella, N. and Salerno, I. (2016), “Creative economy, cultural industries and local

development”, Procedia – Social and Behavioral Sciences, Vol. 223, pp. 291-

Bettiol, M. and Sedita, S.R. (2011), “The role of community of practice in developing

creative industry projects”, International Journal of Project Management, Vol.

No. 4, pp. 468-479

Darnall, N., Henriques, I., & Sadorsky, P. (2010). Adopting proactive environmental

strategy: The influence of stakeholders and firm size. Journal of management

studies, 47(6), 1072-1094.

De Beukelaer, C. (2015), Developing Cultural Industries: Learning from the Palimpsest

of Practice, European Cultural Foundation.

Deephouse, D. L., Newburry, W., & Soleimani, A. (2016). The effects of institutional

development and national culture on cross-national differences in corporate

reputation. Journal of World Business, 51(3), 463-473.

Fahmi, F.Z., Koster, S. and van Dijk, J. (2016), “The location of creative industries in a

developing country: the case of Indonesia”, Cities, Vol. 59, pp. 66-79

Fernando, Y., & Wah, W. X. (2017). The impact of eco-innovation drivers on

environmental performance: Empirical results from the green technology sector

in Malaysia. Sustainable Production and Consumption, 12, 27-43.

Fombrun, C. J. (2005). The leadership challenge: Building resilient corporate reputations.

Handbook on responsible leadership and governance in global business, 54, 68.

Gligor, D. M., Holcomb, M. C., & Feizabadi, J. (2016). An exploration of the strategic

antecedents of firm supply chain agility: The role of a firm's orientations.

International Journal of Production Economics, 179, 24-34.

Govindan, K., Kaliyan, M., Kannan, D., & Haq, A. N. (2014). Barriers analysis for green

supply chain management implementation in Indian industries using analytic

hierarchy process. International Journal of Production Economics, 147, 555-568.

Hafeez, M.H., Shariff, M.N.M. and bin Mad Lazim, H. (2012), “Relationship between

entrepreneurial orientation, firm resources, SME branding and firm’s

performance: is innovation the missing link?”, American Journal of Industrial

and Business Management, Vol. 2 No. 4, p. 153.

Hart, S. L., & Dowell, G. (2011). Invited editorial: a natural-resource-based view of the

firm: fifteen years after. Journal of management, 37(5), 1464-1479.

Hassim, A.A., Asmat-Nizam, A.-T. and Bakar, A.R.A. (2011), “The effects of

entrepreneurial orientation on firm organisational innovation and market

orientation towards firm business performance”, International on Sociality ND

Economics Development, Vol. 10, pp. 280-284.

Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing

discriminant validity in variance-based structural equation modeling. Journal of

the academy of marketing science, 43(1), 115-135.

Kleindorfer, P. R., Singhal, K., & Van Wassenhove, L. N. (2005). Sustainable operations

management. Production and operations management, 14(4), 482-492.

Liu, Y. and Almor, T. (2016), “How culture influences the way entrepreneurs deal with

uncertainty in inter-organizational relationships: the case of returnee versus local

entrepreneurs in China”, International Business Review, Vol. 25 No. 1, pp. 4-

Llach, J., Perramon, J., del Mar Alonso-Almeida, M., & Bagur-Femenías, L. (2013). Joint

impact of quality and environmental practices on firm performance in small service businesses: An empirical study of restaurants. Journal of Cleaner

Production, 44, 96-104

Marcella, M. and Rowley, S. (2015), “An exploration of the extent to which project

management tools and techniques can be applied across creative industries

through a study of their application in the fashion industry in the North East of

Scotland”, International Journal of Project Management, Vol. 33 No. 4, pp. 735-

Mittal, V. K., & Sangwan, K. S. (2013). Assessment of hierarchy and inter-relationships

of barriers to environmentally conscious manufacturing adoption. World Journal

of Science, Technology and Sustainable Development.

OECD., & Organisation for Economic Co-operation and Development Staff. (2010).

OECD Employment Outlook 2010: Moving Beyond the Jobs Crisis.

Organisation for Economic Co-operation and Development.

Sangle, S., & Ram Babu, P. (2007). Evaluating sustainability practices in terms of

stakeholders' satisfaction. International Journal of Business Governance and

Ethics, 3(1), 56-76.

Sarkis, J., Gonzalez-Torre, P., & Adenso-Diaz, B. (2010). Stakeholder pressure and the

adoption of environmental practices: The mediating effect of training. Journal of

Operations Management, 28(2), 163-176.

Shashi, Centobelli, P., Cerchione, R., & Singh, R. (2019). The impact of leanness and

innovativeness on environmental and financial performance: Insights from

Indian SMEs. International Journal of Production Economics, 212, 111-124.

Tambunan, T. (2007), “Development of SMEs in a developing country: the Indonesian

story”, Journal of Business and Entrepreneurship, Vol. 19 No. 2, p. 60

Terry, A. and Grünhagen, M. (2017), “21. Franchising in Southeast Asia: prerequisites,

progress and prospects”, Handbook of Research on Franchising, Edward Elgar

Publishing, p. 451.

Turban, D. B., & Cable, D. M. (2003). Firm reputation and applicant pool characteristics.

Journal of Organizational Behavior: The International Journal of Industrial, Occupational

and Organizational Psychology and Behavior, 24(6), 733-751