Can the green intellectual capital dimension, in conjunction with fintech adoption, achieve business sustainability?

Abstract

MSMEs are important pillars of the Indonesian economy as economic drivers, but they also have social and environmental responsibilities in supporting sustainable development. This study aims to analyze the green intellectual capital model, which not only considers profits but also contributes to environmental sustainability by leveraging fintech, thereby achieving business sustainability across economic, social, and environmental dimensions. This research method uses a quantitative approach, collecting primary data through questionnaires and analyzing them using SEM-PLS, with a sample of 220 businesses. The results of the study indicate that green intellectual capital has a significant influence on fintech adoption and on sustainability performance in all aspects, i.e., economic, social, and environmental. Fintech adoption has a significant influence on economic and social sustainability performance, but not significantly on environmental performance. Fintech adoption can mediate the effect of green intellectual capital on economic and social performance. Still, it cannot mediate the effect of green intellectual capital on environmental performance among MSMEs in the Serikat Usaha Muhammadiyah (SUMU) community of East Java. To achieve scale-up for MSMEs, specific policies are needed to direct the use of green fintech in company operations, thereby achieving a significant impact in realizing sustainable businesses, such as the use of environmentally friendly raw materials and products, energy efficiency, and access to green financing.