ENHANCING THE LOCAL SUSTAINABILITY THROUGH CREATING SHARED VALUE (LOCUS OF RESEARCH ON GARUT LEATHER HANDCRAFT)
Abstract
Background: Business actors in the leather crafting MSME sector in Garut have yet to optimize performance, despite increasing awareness of social and environmental business values.
Objective: The objectiveof this research is to examine whether Creating Shared Value (CSV) moderates the relationship between Entrepreneurial Orientation and both financial and non-financial performance among Micro, Small, and Medium-Sized Enterprises (MSMEs) in the leather crafting sector in Garut.
Research Methods: The research method used a quantitative approach using a survey conducted on MSMEs in the leather crafting sector in Garut that have been operating for more than six months. Data were collected from a selected sample and analyzed to examine the relationships between Entrepreneurial Orientation, Creating Shared Value, and both financial and non-financial performance.
Research Results: The research found that entrepreneurial orientation has no significant impact on the financial performance of MSMEs. However, it significantly enhances non-financial performance, such as social and environmental outcomes. Additionally, creating shared value does not moderate the relationship between entrepreneurial orientation and MSME performance.
Originality/Novelty of Research: To the best of the researcher's knowledge, no previous research has specifically explored the relationship of entrepreneurial orientation to financial and non-financial performance, especially in terms of the environment related to sustainability and MSMEs leather craftsmen in Garut.
Keywords
Full Text:
PDFReferences
Al-mamary, Yaser Hasan, Mohammed A. Alwaheeb, Naif Ghazi M. Alshammari, Hamad Balhareth, and Hela Ben Soltane. 2020. “The Effect of Entrepreneurial Orientation on Financial and Non-Financial Performance in Saudi Smes: A Review.” Journal of Critical Reviews 7(14). doi: 10.31838/jcr.07.14.35.
Ardillah, Kenny, Ririn Breliastiti, Temy Setiawan, and Nera Marinda Machdar. 2022. “The Role of Ownership Structure in Moderating The Relationship Between Tax Avoidance, Corporate Social Responsibility Disclosure, and Firm Value.” Accounting Analysis Journal 11(1):21–30. doi: 10.15294/aaj.v11i1.58613.
Barney, Jay. 1991. “Firm Reources Ad Sustained Competitive Advantege.” Journal of Management 17(1):99–120.
Brinkmann, Robert. 2016. Introduction to SUSTAINABILITY. 1st ed. New York: WILEY Blackwell.
Christianto, Samuel, and Temy Setiawan. 2024. “The Influence of Entrepreneurial Orientation on Social and Economic Benefits with Shared Value Creation as Moderization in Sumedang MSMEs.” International Journal of Economics, Business and Management Research 08(01):39–47. doi: 10.51505/ijebmr.2024.8103.
Deegan, Craig, Michaela Rankin, and John Tobin. 2002. An Examination of the Corporate Social and Environmental Disclosures of BHP from 1983-1997: A Test of Legitimacy Theory. Vol. 15.
Dowling, John, and Jeffrey Pfeffer. 1975. “Pacific Sociological Association Organizational Legitimacy: Social Values and Organizational Behavior.” Source: The Pacific Sociological Review 18(1):122–36.
Fadil. 2024. “MenKopUKM Inginkan Produk Kulit Garut Bisa Setara Kualitas Brand Italia.” Beritakota.Id Ekonomi & Bisnis. Retrieved March 12, 2025 (https://beritakota.id/menkopukm-inginkan-produk-kulit-garut-bisa-setara-kualitas-brand-italia/).
Friesen, Peter, and Danny Miller. 1982. “Innovation in Conservative and Entrepreneurial Firms: Two Models of Strategic Momentum.” Strategic Management Journal 3(December 1980):1–25.
Ghozali, Imam. 2021. PARTIAL LEAST SQUARES: KONSEP, TEKNIK, DAN APLIKASI MENGGUNAKAN PROGRAM SMARTPLS 3.2.9 UNTUK PENELITIAN EMPIRIS. 3rd ed. Badan Penerbit Universitas Diponegoro.
Ham, Sunny, Seoki Lee, Hyejin Yoon, and Changsik Kim. 2020. “Linking Creating Shared Value to Customer Behaviors in the Food Service Context.” Journal of Hospitality and Tourism Management 43(April):199–208. doi: 10.1016/j.jhtm.2020.04.002.
Hantono, Temy Setiawan, Muhammad Rizal, Dwi Urip Wardoyo, Agustine Dwianika, Victoria Ari Palma Akadiati, Intan Rahkmawati, Galuh Tresna Murti, Sobrotul Imtikhanah, Yennisa, Antonius Grivaldi Sondakh, Medina Almunawwaroh, Lagu Jantje, Alfian, Made Dudy Satyawan, and Dewi Kusuma Wardani. 2023. AKUNTANSI BERKELANJUTAN. Hidayatull. Purbalingga: CV. EUREKA MEDIA AKSARA.
Harventy, Gina. 2025. “Pursuing Sustainable Development Goals through Creating Shared Value in Small Medium Enterprise.” Multidisciplinary Reviews 8(4):1–7. doi: 10.31893/multirev.2025099.
Indriastuty, Nina, Ni Made Intan Prilliandani, Ika Makherta Sutadji, Titik Agus Setiyaningsih, and Alvien Gunawan. 2024. “Opportunities and Challenges: Implementation of Sustainable Business Practices in MSME’s.” At-Tadbir : Jurnal Ilmiah Manajemen 31–37. doi: 10.31602/piuk.v0i0.15423.
Kristinae, Vivy, Roby Sambung, Meitiana, Laden Mering, Christantius Dwiatmadja, and Hansly Tunjang. 2023. “Application of RBV Theory in Entrepreneurial Orientation, Dynamic Capability and Customer Relationship Management.” Uncertain Supply Chain Management 11(2):707–12. doi: 10.5267/j.uscm.2023.1.010.
Lumpkin, G. .., and Gregory G. Dess. 1996. “La Construccion Aclaratoria Emprendedora y La Orientcion Vinculannte.” Universidad de Administracion 21(1):135–72.
Marcelo F., de la Cruz Jara, Jelena Spanjol, and Theresa Doppstadt. 2024. “Strategic Social Value Orientation and Sustainability Performance: A Commensuration Perspective.” Organization Studies. doi: 10.1177/01708406241242900.
Miller, Danny. 1983. “The Correlates of Entrepreneurship in Three Types of Firms.” Management Science 29(7):770–91. doi: 10.1287/mnsc.29.7.770.
Mintzberg, Henry. 1973. “Strategy Making in Three Modes.” California Management Review 16(2):44–53.
Ogunode, Olubunmi Adewole. 2022. “Legitimacy Theory and Environmental Accounting Reporting and Practice: A Review.” South Asian Journal of Social Studies and Economics 13(1):17–28. doi: 10.9734/sajsse/2022/v13i130345.
Perekonomian, Kementerian Koordinator Bidang. 2023. “Tingkatkan Inklusi Keuangan Bagi UMKM Melalui Pemanfaatan Teknologi Digital, Pemerintah Luncurkan Program PROMISE II Impact - Kementerian Koordinator Bidang Perekonomian Republik Indonesia.” Retrieved (https://www.ekon.go.id/publikasi/detail/4980/tingkatkan-inklusi-keuangan-bagi-umkm-melalui-pemanfaatan-teknologi-digital-pemerintah-luncurkan-program-promise-ii-impact).
Porter, Michael E., and Mark Kramer. 2006a. “Aligning Strategy and Corporate Social Responsibility.” Harvard Business Review (December):1–13.
Porter, Michael E., and Mark Kramer. 2006b. “Social, Strategy and Society: The Link Between Competitive Advantage and Corporate.” Harvard Business Review. Retrieved March 11, 2025 (https://hbr.org/2006/12/strategy-and-society-the-link-between-competitive-advantage-and-corporate-social-responsibility).
Putra, Wisma. 2024. “Masa Depan UMKM Kulit Garut Di Pasar Global.” DetikJabar Bisnis. Retrieved March 12, 2025 (https://www.detik.com/jabar/bisnis/d-7663837/masa-depan-umkm-kulit-garut-di-pasar-global).
Sambuaga, Elfina, and Astrella. 2020. “Penggunaan Economic Value Added Sebagai Kriteria Dalam Penerapan Creating Shared Value.” Jurnal Akuntansi, Ekonomi Dan Mamanjemen Bisnis 8(2):181–94.
Sampe, Ferdinandus, Edi Pranyoto, Hilda Wiralestari, Agustine Dwianika, Farida Idayati, Hidayatullah Musnaini, Ni Putu, Widhia Rahayu, Maria Puspitasari Temy, Setiawan Riha, Dedi Priantana, Riau Sujarwani, Angelina Rosmawati, Steven Orlando, and Antonius Grivaldi Sondakh. 2023. KEWIRAUSAHAAN Pendekatan Teoritis PENERBIT CV. EUREKA MEDIA AKSARA. edited by V. M. Ulfah. Purbalingga: CV. EUREKA MEDIA AKSARA.
Seo, Joohwan, Jiseon Lee, Sunggwang Jung, and Sangil Park. 2023. “The Role of Creating Shared Value and Entrepreneurial Orientation in Generating Social and Economic Benefits: Evidence from Korean SMEs.” Sustainability (Switzerland) 15(7). doi: 10.3390/su15076168.
Setiabudhi, Hatta, Suwono, Yudi Agus Setiawan, and Syahrul Karim. 2025. Analisis Data Kuantitatif Dengan Smart PLS 4. Duari, I P. Balikpapan: Borneo Novelty Publishing.
Setiawan, Temy, Frisca Adriana, and Pardomuan Robinson Sihombing. 2021. “Karakteristik Perusahaan, Profitabilitas Dan Corporate Social Responsibility Disclosure (CSRD).” Journal of Business & Applied Management 14(1):017. doi: 10.30813/jbam.v14i1.2706.
Tilling, Matthew V. 2004. “Some Thoughts on Legitimacy Theory in Social and Environmental Accounting.” Social and Environmental Accountability Journal 24(2):3–7. doi: 10.1080/0969160X.2004.9651716.
Tresnadi, Billi Aurizza, and Imbang Jaya Mangkuto. 2024. “Strategi Keberlanjutan Perusahaan Melalui Transformasi Program Corporate Social Responsibility Menjadi Creating Shared Valu e Dengan Menerapkan Prinsip Good Corporate Governance ( Studi Kasus Pada Lini Bisnis Otomotif PT Astra International Tbk ).” 07(02):91–108.
Wernerfelt, Birger. 1984. “A Resource-Based View of the Firm.” Strategic Management Journal 5. doi: 10.1177/1056492611436225.
Yanto, Juli. 2020. “PENGARUH ORIENTASI KEWIRAUSAHAAN TERHADAP KINERJA UMKM DI JABODETABEK DENGAN INDIVIDUALISME SEBAGAI VARIABEL MODERASI.” 207–13.
DOI: http://dx.doi.org/10.30813/jab.v18i2.8296
Refbacks
- There are currently no refbacks.
Jurnal Akuntansi Bisnis by The author of this article is licensed under a Deed - Attribution-ShareAlike 4.0 International - Creative Commons. Based on a work at https://journal.ubm.ac.id/index.php/akuntansi-bisnis.
Permissions beyond the scope of this license may be available at https://journal.ubm.ac.id/index.php/akuntansi-bisnis.