Based on Stakeholder Theory and Social Cognitive Theory. This research aims to determine the influence of therelationship between green process innovation on the performance of MSMEs and moderating perceived environmentalvolatility. This research uses a survey. Research population of MSME owners in Solo City, Indonesia. Convenience sampling wasused with a sample size of 120 respondents. Data analysis used PLS-SEM version 3.0. The research results show that greentransformational leadership has a significant effect on the performance of MSMEs. Green process innovation has a significanteffect on the performance of MSMEs. Moderation of perceived environmental volatility in the relationship between greenprocess innovation has a significant effect on the performance of MSMEs and has a positive but not significant effect. Thecurrent research provides useful insights into green process innovation and perceived environmental volatility that can improveMSME performance.