Green Business Innovation to Improve SME Performance and Save the Environment

Posted by Admin

October 8, 2024

The journal titled “Green Business Sustainability: SMES Strategy to Increase Business Performance and Save the Environment” authored by Dinalestari Purbawati, Widiartanto, and Robetmi Jumpakita Pinem reveals significant research findings on the impact of green marketing, innovation, and ethics on business performance. The research employs a quantitative approach using a survey method involving ecotourism visitors in Indonesia prior to the COVID-19 pandemic. Through purposive sampling, the study collected data from 24 samples using a Likert scale. Descriptive and verification analysis was conducted using SEM PLS, demonstrating that this research model strengthens theoretical concepts in management after being tested with the Structural Equation Model (SEM).

Indonesia is one of the countries with the largest number of micro and small enterprises, continuously showing positive growth. According to data from the Ministry of Cooperatives and Micro, Small, and Medium Enterprises, the number of micro-enterprises increased from 62,106,900 in 2017 to 63,350,222 in 2018, marking an approximate 2% growth. Meanwhile, the number of small enterprises grew by around 3.44%, from 757,090 in 2017 to 783,132 in 2018. This trend reflects an increasing number of people starting their own businesses, particularly micro-enterprises.

The study also highlights the importance of eco-friendly product innovation in enhancing competitiveness and business performance. Green product innovation, which utilizes recyclable or renewable resources and aims to reduce energy consumption and pollution, provides significant environmental benefits such as reduced air pollution and waste reduction through recyclable packaging. Companies that focus on green product innovation can significantly enhance their sustainable competitive advantage and the performance of SMEs.

Source: PURBAWATI, D., WIDIARTANTO, W., & PINEM, R. J. (2023). Green business sustainability: SMES strategy to increase business performance and save the environment. J Mark Res Case Stud, 2023, 1-8.

Author Information:
Dinalestari Purbawati, S.E., M.Si., Akt. is a lecturer in the Department of Business Administration with a Bachelor’s, Master’s, and Professional degree from Universitas Diponegoro.

Contributor: Wulan Safitri

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