Readiness for Change in Supporting the Sustainability of Micro, Small, and Medium Enterprises

This study investigates sustainability accounting, focusing on environmental issues that impact public health and economic interests. Prior research has explored sustainability accounting, but few studies focus on MSMEs, particularly in Denpasar. Using Dynamic Capabilities Theory, this quantitative study tests hypotheses with Partial Least Squares (PLS). The population consists of 29,549 MSMEs in Denpasar, with a sample size of 100. Variables include supply chain characteristics, business characteristics, accounting system implementation, and sustainability accounting practices. Findings indicate that financial literacy based on SAK EMKM significantly affects business continuity, while e-commerce usage does not. Green innovation and readiness for change positively influence business continuity. The study provides insights into MSME sustainability, emphasizing the role of financial literacy and green innovation for long-term viability.