Sebelas Maret International Conferences, The 2nd INCREDIBLE

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Mediating role of green innovation on green market orientation-business performance relationship: Evidence from MSMEs in East Java Province, Indonesia
Bambang Tjahjadi, Noorlailie Soewarno, Noorlailie Soewarno, Hariyati Hariyati, Hariyati Hariyati, Lina Nasihatun Nafidah, Lina Nasihatun Nafidah, Nanik Kustiningsih, Nanik Kustiningsih, Viviani Nadyaningrum, Viviani Nadyaningrum

Building: Parallel Session 2
Room: H
Date: 2020-10-27 02:45 PM – 04:00 PM
Last modified: 2020-10-19


This study aims to investigate the antecedents of business performance by investigating the effect of green market orientation on business performance. If so, whether the relationship is mediated by green innovation. As a quantitative research, partial least squares structural equation modeling (PLS SEM) was employed to test the hypotheses that have been formulated. Data were collected using both online and offline questionnaires from owners/managers of the manufacturing micro, small and medium-sized enterprises (MSMEs) in the East Java Province of Indonesia. A total of 175 respondents were participated in this study. The results show that green market orientation has a positive and direct effect on business performance. Furthermore, the result reveals that green innovation partially mediates the effect of green market orientation on business performance. This study provides empirical evidence for the development of sustainability and entrepreneurship theories. The results also imply that MSMEs need to balance environmental, social and economic issues in their business. In the era of sustainable development and environmental awareness, the manufacturing MSMEs need to adopt a green market orientation and carry out green innovation in their business processes to obtain a better business performance.