Nila Firdausi Nuzula, Saparila Worokinasih, Cacik Rut Damayanti
The present study examines how demands for green finance are incorporated into routine financial practices within founder-led ventures. This paper extends the existing literature by moving beyond intention-based explanations to propose a novel conceptualization of green financial behavior (GFB). The proposed conceptualization is of GFB as a micro-foundational governance routine embedded in everyday financial decision-making. The study proposes a capability-based framework in which financial literacy (FL) functions as a foundational implementation capability, while social capital (SC) and emotional intelligence (EI) serve as complementary relational and regulatory mechanisms. This framework is drawn from an enactment-oriented extension of the Theory of Planned Behavior. Using survey data from Indonesian millennial entrepreneurs and structural equation modeling, the results show that FL exhibits a strong direct effect on both SC and EI, and plays a dominant role in enabling GFB, while SC contributes moderately to EI. These findings support a hierarchical capability structure in which calculative competence drives routinized sustainability practices, and relational and socio-emotional capabilities enhance execution under uncertainty. The study contributes by reframing green finance as an enactment problem and by integrating financial, relational, and emotional capabilities into a unified explanatory model. Practical implications highlight the importance of capability-based interventions for entrepreneurs, support programs, and policymakers. © 2026 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY license. http://creativecommons.org/licenses/by/4.0/
Department of Business Administration, Faculty of Administrative Science, Universitas Brawijaya, Indonesia
