Abstract

This study empirically examined the mediating of green product innovation on the effect of MSMEs’ accounting capability and financial performance on new normal era. The research approach used is quantitative research, and the population is the MSMEs in Semarang. The sample in this study comprised 125 MSMEs using the Slovin formula. The determination and distribution of the sample were based on purposive sampling. The analytical method used in the data processing was SEM-PLS with the help of SmartPLS software. The results showed that accounting capability and green product innovation had no effect on financial performance, but accounting capability positively affected green product innovation. Meanwhile, green product innovation has not been proven to mediate the relationship between accounting capability and financial performance.