Business Transformation with Green Financial Management: Enhancing Sustainability and Competitiveness in Indonesian SMEs

DOI

10.2991/978-94-6239-709-5_39How to use a DOI?

Keywords

Business Transformation; Green Financial Management; Sustainability; Competitive Advantage; SMEs; Indonesia

Abstract

This study examines how business transformation and green financial management (GFM) jointly foster sustainability and, in turn, strengthen competitive advantage among Indonesian SMEs. Design/methodology/approach: We surveyed 300 SMEs spanning services, technology, fashion, culinary, agriculture, and crafts. Relationships among business transformation, GFM, sustainability, and competitive advantage were tested using SEM-PLS with bootstrapping. Findings: Business transformation positively affects sustainability (β = 0.51, p < 0.001) and competitive advantage (β = 0.48, p < 0.001). GFM also enhances sustainability (β = 0.45, p < 0.001) and competitive advantage (β = 0.42, p < 0.001). Sustainability partially mediates the effects of business transformation (indirect β = 0.33, p < 0.001) and GFM (indirect β = 0.25, p = 0.001) on competitive advantage, indicating that firms translate transformation and green finance into market gains through improved sustainability performance. Originality/value: Addressing a documented gap, this study integrates business transformation and GFM in one model and provides large-sample, SME-specific evidence from Indonesia, highlighting sustainability’s mediating role. Practical implications: Managers should align digital/process transformation with green budgeting, investment, and risk management to realize both efficiency and reputational benefits. Policymakers can accelerate SME competitiveness by expanding access to green finance instruments and incentives tied to measurable sustainability outcomes.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Mursalim Nohong
AU  - Sabbar Dahham Sabbar
AU  - Amer Ahmad Hatamleh
AU  - Muhammad Try Dharsana
AU  - Fakhrul Indra Hermansyah
AU  - Andi Iqra Pradipta Nasir
AU  - Suhaily Sudarman
AU  - Zakiyyah Mutiah
PY  - 2026
DA  - 2026/06/20
TI  - Business Transformation with Green Financial Management: Enhancing Sustainability and Competitiveness in Indonesian SMEs
BT  - Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025)
PB  - Atlantis Press
SP  - 571
EP  - 580
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-709-5_39
DO  - 10.2991/978-94-6239-709-5_39
ID  - Nohong2026
ER  -