GREEN PRACTICE MOTIVATION IN SMALL BUSINESSES

Abstract

Purpose: The study's primary aim is to identify and analyze the factors influencing the motivation of Small and Medium Enterprises (SMEs) in Indonesia to implement green accounting practices as part of sustainable business operations. Theoretical framework: The theoretical framework focuses on motivational theories, particularly distinguishing between extrinsic and intrinsic motivations. This framework underpins the study's exploration of why SMEs might adopt green practices. Method: The research employs a deductive approach, utilizing qualitative methods such as interviews and document analysis to gather data. This approach is used to understand the motivations behind SMEs' decisions to implement green accounting practices. Result and Conclusion: The study finds that extrinsic and intrinsic factors motivate SMEs to run sustainable businesses and adopt green accounting practices. Extrinsic motivations include introjected motivation, identification, and integrated motivation, while intrinsic motivations are derived from satisfaction, profits, and cost efficiency. Research implications: The study contributes to the broader understanding of green practices in the context of SMEs, a sector often overlooked in previous research predominantly focused on larger companies. The findings can aid SMEs in understanding the various motivational factors that could drive the adoption of green practices. The results are valuable for policy-making, providing insights for the government to develop green policies tailored to small businesses, promoting broader environmental sustainability within the business sector. Originality/value: This study focuses on green accounting that was carried out in a small, medium enterprises (SMEs) context, which has not been studied much by previous studies.