Abstract

Purpose: The main purpose of this study was to prove empirically the influence of environment-based culture on financial performance, with green innovation as a mediating variable for manufacturing companies listed in the vicinity of PIER and SIER East Java. Design/Methodology: The population of this study are manufacturing companies located in SIER and PIER. The survey was conducted by sending questionnaires to respondents in management levels in an organisation of a manufacturing company. The survey was carried out using two methods, both online, with paper surveys for some people. Findings: The results of this study indicate that environmental culture has a positive effect, and was shown to significantly affect financial performance, mediated by green process innovation, but green innovation products have not succeeded in mediating the influence of environmental commitment on financial performance. Originality/value: The originality of this study includes: the use of green accounting as a mediator-something which has not been conducted by other researchers, especially in Indonesia; measurement using ordinal scale primary data; and analysing manufacturing companies as the study's population.

Original languageEnglish
Pages (from-to)320-334
Number of pages15
JournalInternational Journal of Innovation, Creativity and Change
Volume11
Issue number11
Publication statusPublished - 2020

Keywords

  • Environment-based culture
  • Financial performance
  • Green process innovation
  • Green product innovation

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