Research Article
Green Innovation Practices in Micro Small and Medium-sized Enterprises: Does It Affect Competitive Advantage and Business Performance?
@INPROCEEDINGS{10.4108/eai.14-8-2024.2351540, author={Maulida Nurul Innayah and Bima Cinintya Pratama and Ghefira Hanifah and Melani Awalia and Dany Nofrizal Petra}, title={Green Innovation Practices in Micro Small and Medium-sized Enterprises: Does It Affect Competitive Advantage and Business Performance?}, proceedings={Proceedings of the 4th International Conference on Business, Accounting, and Economics, ICBAE 2024, 14-15 August 2024, Purwokerto, Indonesia}, publisher={EAI}, proceedings_a={ICBAE}, year={2024}, month={11}, keywords={green process innovation competitive advantage msmes business performance}, doi={10.4108/eai.14-8-2024.2351540} }- Maulida Nurul Innayah
Bima Cinintya Pratama
Ghefira Hanifah
Melani Awalia
Dany Nofrizal Petra
Year: 2024
Green Innovation Practices in Micro Small and Medium-sized Enterprises: Does It Affect Competitive Advantage and Business Performance?
ICBAE
EAI
DOI: 10.4108/eai.14-8-2024.2351540
Abstract
Despite the recognized importance of green innovation in organizations, it is not clear how the green innovation practice drives the success of Micro, Small, and Medium-Sized Enterprises (MSMEs). Using survey data collected from 105 MSMEs, this study aimed to examine the effect of green process innovation in creating Competitive Advantage and MSMEs' business performance. We found that green process innovation has a positive effect on MSMEs' business performance. Additionally, we discovered that competitive advantage mediates the relationship between green process innovation and MSMEs' business performance. The resource-based theory provides a foundation for understanding how green innovation practices are crucial in driving MSMEs' business performance. The implementation of environmentally sustainable practices enhances the sustainable competitive advantage. This, in turn, leads to better overall MSMEs' business performance.
