The Effect of Green Development Models on Business Sustainability in Property Companies in the Digital Age

Authors

  • Suwandi Universitas Pancasakti Tegal, Tegal, Indonesia

DOI:

https://doi.org/10.23887/ijssb.v6i4.48159

Keywords:

business sustainability, green development, digital era

Abstract

Recently, the global scenario has changed radically due to the ongoing coronavirus disease pandemic and the economic impact caused by lockdowns in various countries. It seems that embracing digitalization and the transformation of business organizations that integrate digital technology has become paramount to the survival of enterprises. This study aims to analyze the effect of the Green Development Model on Business Sustainability in Property Companies in the Digital Era. This research is included in descriptive quantitative research. This research was conducted on Property, and Real Estate Companies registered on the IDX. The sampling technique in this study is purposive sampling, so the sample obtained in this study was 42 Property and Real Estate companies. Validity and reliability tests are carried out to ensure that the measurements used are accurate and reliable . The dependent construct R-square is used to analyze the effect of the specific independent variable on the dependent latent variable, which displays the magnitude of the effect. Business Sustainability is affected by the Green Development Model. This study’s results show the effect of the Green Development Model on Business Sustainability. The t-statistic value is greater than the beta score. So the explanation above will show that the Green Development Model significantly affects Business Sustainability. A real estate company that also implements the Green Development Model is a form of Business Sustainability that is currently implemented, so it is very influential between the Green Development Model on Business Sustainability.

References

Agyemang, M., Zhu, Q., Adzanyo, M., Antarciuc, E., & Zhao, S. (2018). Evaluating barriers to green supply chain redesign and implementation of related practices in the West Africa cashew industry. Resources, Conservation and Recycling. https://doi.org/10.1016/j.resconrec.2018.04.011. DOI: https://doi.org/10.1016/j.resconrec.2018.04.011

Ahmadalipour, A., & Moradkhani, H. (2018). Escalating heat-stress mortality risk due to global warming in the Middle East and North Africa (MENA). Environment International. https://doi.org/10.1016/j.envint.2018.05.014. DOI: https://doi.org/10.1016/j.envint.2018.05.014

Almaududi, S. (2018). Employee Performance: a Perspective of Organizational Citizenship Behavior (Ocb). Journal of Business Studies and Management Review (JBSMR), 2(1), 35–38. https://doi.org/10.22437/jbsmr.v2i1.6459.

Anekwe, D. E., Koo, K. K. Y., de Marchie, M., Goldberg, P., Jayaraman, D., & Spahija, J. (2019). Interprofessional Survey of Perceived Barriers and Facilitators to Early Mobilization of Critically Ill Patients in Montreal, Canada. Journal of Intensive Care Medicine. https://doi.org/10.1177/0885066617696846. DOI: https://doi.org/10.1177/0885066617696846

Bansal, P. (2019). GUIDEPOST: Sustainable Development in an Age of Disruption. Academy of Management Discoveries. DOI: https://doi.org/10.5465/amd.2019.0001

Barratt, M., Kull, T. J., & Sodero, A. C. (2018). Inventory record inaccuracy dynamics and the role of employees within multi-channel distribution center inventory systems. Journal of Operations Management. https://doi.org/10.1016/j.jom.2018.09.003. DOI: https://doi.org/10.1016/j.jom.2018.09.003

Carayannis, E. G., & Morawska-Jancelewicz, J. (2022). The Futures of Europe: Society 5.0 and Industry 5.0 as Driving Forces of Future Universities. Journal of the Knowledge Economy, 0123456789. https://doi.org/10.1007/s13132-021-00854-2. DOI: https://doi.org/10.1007/s13132-021-00854-2

Franken, J. C. M., van Dun, D. H., & Wilderom, C. P. M. (2021). Kaizen event process quality: towards a phase-based understanding of high-quality group problem-solving. International Journal of Operations and Production Management. https://doi.org/10.1108/IJOPM-09-2020-0666. DOI: https://doi.org/10.1108/IJOPM-09-2020-0666

Gong, M., Simpson, A., Koh, L., & Tan, K. H. (2018). Inside out: The interrelationships of sustainable performance metrics and its effect on business decision making: Theory and practice. Resources, Conservation and Recycling. https://doi.org/10.1016/j.resconrec.2016.11.001. DOI: https://doi.org/10.1016/j.resconrec.2016.11.001

Guo, Y., Tong, L., & Mei, L. (2020). The effect of industrial agglomeration on green development efficiency in Northeast China since the revitalization. Journal of Cleaner Production. https://doi.org/10.1016/j.jclepro.2020.120584. DOI: https://doi.org/10.1016/j.jclepro.2020.120584

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. In European Business Review. https://doi.org/10.1108/EBR-11-2018-0203. DOI: https://doi.org/10.1108/EBR-11-2018-0203

Harlan, T. (2020). Green development or greenwashing? A political ecology perspective on China’s green beltand road. In Eurasian Geography and Economics. https://doi.org/10.1080/15387216.2020.1795700. DOI: https://doi.org/10.1080/15387216.2020.1795700

Hermelingmeier, V., & von Wirth, T. (2021). The nexus of business sustainability and organizational learning: A systematic literature review to identify key learning principles for business transformation. Business Strategy and the Environment. https://doi.org/10.1002/bse.2719. DOI: https://doi.org/10.1002/bse.2719

Ivashova, V., Goncharov, V., Erokhin, A., Kolosova, O., Migacheva, M., & Berkovsky, V. (2019). Education in a Digital Society: The Problem of Formation of Information Culture. International Journal of Civil Engineering and Technology (IJCIET), 10(3), 1341–1347. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3456657.

Jiang, Y., & Gao, Y. (2019). Factors that Influence Potential Green Hotel Customers’ Decision-making Process–Evidence from China. Journal of China Tourism Research, 15(4), 455–477. https://doi.org/10.1080/19388160.2018.1558139. DOI: https://doi.org/10.1080/19388160.2018.1558139

Karaaslan, A., & Çamkaya, S. (2022). The relationship between CO2 emissions, economic growth, health expenditure, and renewable and non-renewable energy consumption: Empirical evidence from Turkey. Renewable Energy. https://doi.org/10.1016/j.renene.2022.03.139. DOI: https://doi.org/10.2139/ssrn.3996938

Marota, R. (2017). Green Concepts And Material Flow Cost Accounting Application For Company Sustainability. Indonesian Journal of Business and Entrepreneurship, 3(1). https://doi.org/10.17358/ijbe.3.1.43. DOI: https://doi.org/10.17358/ijbe.3.1.43

Peter, M. K., Kraft, C., & Lindeque, J. (2020). Strategic action fields of digital transformation: An exploration of the strategic action fields of Swiss SMEs and large enterprises. Journal of Strategy and Management, 13(1), 160–180. https://doi.org/10.1108/JSMA-05-2019-0070. DOI: https://doi.org/10.1108/JSMA-05-2019-0070

Phongchiewboon, A. (2018). Green Development: Environment and Sustainability in a Developing World. PSAKU International Journal of Interdisciplinary Research. https://doi.org/10.12778/235108618x15452373186137. DOI: https://doi.org/10.12778/235108618X15452373186137

Rieckhof, R., & Guenther, E. (2018). Integrating life cycle assessment and material flow cost accounting to account for resource productivity and economic-environmental performance. International Journal of Life Cycle Assessment, 17, 1725–1737. https://doi.org/10.1007/s11367-018-1447-7. DOI: https://doi.org/10.1007/s11367-018-1447-7

Sarstedt, M., Ringle, C. M., Cheah, J. H., Ting, H., Moisescu, O. I., & Radomir, L. (2020). Structural model robustness checks in PLS-SEM. Tourism Economics, 26(4). https://doi.org/10.1177/1354816618823921. DOI: https://doi.org/10.1177/1354816618823921

Seele, P. (2017). Predictive Sustainability Control: A review assessing the potential to transfer big data driven ‘predictive policing’to corporate sustainability management. Journal of Cleaner Production, 153, 673–686. https://doi.org/10.1016/j.jclepro.2016.10.175. DOI: https://doi.org/10.1016/j.jclepro.2016.10.175

Shalihin, M. Y., Suharman, H., & Hasyir, D. A. (2020). Impact of Corporate Sustainability on Firm Value: Indonesian Context. Journal of Accounting Auditing and Business, 3(1), 102. https://doi.org/10.24198/jaab.v3i1.25834. DOI: https://doi.org/10.24198/jaab.v3i1.25834

Shao, S., Luan, R., Yang, Z., & Li, C. (2016). Does directed technological change get greener: Empirical evidence from Shanghai’s industrial green development transformation. Ecological Indicators, 69, 758–770. https://doi.org/10.1016/j.ecolind.2016.04.050. DOI: https://doi.org/10.1016/j.ecolind.2016.04.050

Sohn, E. J., Lee, Y., Park, N., Park, M., Kim, N. H., Park, S., Min, K., Gu, S., Park, Y., Song, J., An, D. jun, & Hwang, I. (2018). Development of Plant-produced E2 Protein for Use as a Green Vaccine Against Classical Swine Fever Virus. Journal of Plant Biology. https://doi.org/10.1007/s12374-018-0133-4. DOI: https://doi.org/10.1007/s12374-018-0133-4

Sugiyono. (2017). Metode Penelitian Bisnis (Pendekatan Kuantitatif, Kualitatif, Kombinasi dan R&D). In Metodelogi Penelitian.

Sujai, S. R. A. N., & Juwana, I. (2021). Waste management planning toward zero waste in Hotel XYZ Bandung with circular economy principles (case study: Room service facility’s solid waste). IOP Conference Series: Earth and Environmental Science, 940(1). https://doi.org/10.1088/1755-1315/940/1/012052. DOI: https://doi.org/10.1088/1755-1315/940/1/012052

Sullivan, K., Thomas, S., & Rosano, M. (2018). Using industrial ecology and strategic management concepts to pursue the Sustainable Development Goals. Journal of Cleaner Production, 174, 237–246. https://doi.org/10.1016/j.jclepro.2017.10.201. DOI: https://doi.org/10.1016/j.jclepro.2017.10.201

Tilt, C. A., Qian, W., Kuruppu, S., & Dissanayake, D. (2021). The state of business sustainability reporting in sub-Saharan Africa: an agenda for policy and practice. Sustainability Accounting, Management and Policy Journal, 12(2), 267–296. https://doi.org/10.1108/SAMPJ-06-2019-0248. DOI: https://doi.org/10.1108/SAMPJ-06-2019-0248

Ukko, J., Nasiri, M., Saunila, M., & Rantala, T. (2019). Sustainability strategy as a moderator in the relationship between digital business strategy and financial performance. Journal of Cleaner Production, 236, 117626. https://doi.org/10.1016/j.jclepro.2019.117626. DOI: https://doi.org/10.1016/j.jclepro.2019.117626

Wang, Y., Zhao, N., Lei, X., & Long, R. (2021). Green finance innovation and regional green development. Sustainability (Switzerland), 13(15), 8230. https://doi.org/10.3390/su13158230. DOI: https://doi.org/10.3390/su13158230

Wu, H., Li, Y., Hao, Y., Ren, S., & Zhang, P. (2020). Environmental decentralization, local government competition, and regional green development: Evidence from China. Science of the Total Environment, 708, 135085. https://doi.org/10.1016/j.scitotenv.2019.135085. DOI: https://doi.org/10.1016/j.scitotenv.2019.135085

Yuan, B., & Xiang, Q. (2018). Environmental regulation, industrial innovation and green development of Chinese manufacturing: Based on an extended CDM model. Journal of Cleaner Production, 176, 895–908. https://doi.org/10.1016/j.jclepro.2017.12.034. DOI: https://doi.org/10.1016/j.jclepro.2017.12.034

Yusoff, Y. M., Omar, M. K., Kamarul Zaman, M. D., & Samad, S. (2019). Do all elements of green intellectual capital contribute toward business sustainability? Evidence from the Malaysian context using the Partial Least Squares method. Journal of Cleaner Production, 234, 626–637. https://doi.org/10.1016/j.jclepro.2019.06.153. DOI: https://doi.org/10.1016/j.jclepro.2019.06.153

Zhang, J., Zhang, K., & Zhao, F. (2020). Research on the regional spatial effects of green development and environmental governance in China based on a spatial autocorrelation model. Structural Change and Economic Dynamics, 55, 1–11. https://doi.org/10.1016/j.strueco.2020.06.001. DOI: https://doi.org/10.1016/j.strueco.2020.06.001

Downloads

Published

2022-11-10

How to Cite

Suwandi. (2022). The Effect of Green Development Models on Business Sustainability in Property Companies in the Digital Age. International Journal of Social Science and Business, 6(4), 605–612. https://doi.org/10.23887/ijssb.v6i4.48159

Issue

Section

Articles