SMES' FLIGHT TO DIGITAL AND GREEN ECONOMY: EVIDENCE FROM INDONESIA

Abstract

This research aims to examine the impact of SMEs’ digital transformation on improving green economy implementation in Indonesia. This research will analyze how the influence of digitalization on SMEs on green economy implementation is getting stronger in SMEs that have access to financial services in Indonesia. This research will have implications on both theoretical and practical points of view regarding the importance of digital transformation in SMEs, the role of financial access, and green economy. The current research provides empirical evidence on the implementation of digital technology by Indonesian SMEs and the environmental issues that received renewed attention recently. The data in this study were collected using an interviewer-administered survey using google forms with the owners or managers of SMEs in the manufacturing, retail, and services sectors. The variables of interest in this study are the digital transformation of SMEs and green economy implementation. Furthermore, access to financial services is proposed as a moderating variable. In addition, the analytical method used in this quantitative study regression model and processed using STATA 17 software. This research shows that the digital transformation of SMEs helps improve green economy implementation in Indonesia.