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All Journal Dinasti International Journal of Economics, Finance & Accounting (DIJEFA)
Sugiyah Sugiyah
Bina Sarana Informatika University, Jakarta, Indonesia.
Economics, Econometrics & Finance

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Green Innovation in MSMEs: Adaptive Strategies for Competitiveness and Sustainable Economic Growth Sabil Sabil; Lukman Hakim; Amin Setio Lestiningsih; Dwiyatmoko Puji Widodo; Sugiyah Sugiyah; Devy Sofyanty
Dinasti International Journal of Economics, Finance & Accounting Vol. 7 No. 1 (2026): Dinasti International Journal of Economics, Finance & Accounting (March-April 2
Publisher : Dinasti Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.38035/dijefa.v7i1.6330

Abstract

This study examines green innovation and adaptive strategies as strategic determinants of MSME competitiveness and sustainability in the context of sustainable economic development. It analyzes how green innovation contributes to sustainable economic growth and identifies key drivers and barriers to its implementation, while also assessing the role of adaptive strategies in responding to globalization, shifting consumer preferences, and rising environmental demands. Using a quantitative survey of 150 MSMEs in Indonesia and data analysis with PLS-SEM, the study tests the relationships among green innovation, adaptive strategies, competitiveness, and sustainable economic growth. The results show that green innovation significantly promotes sustainable economic growth, and adaptive strategies are crucial in enhancing MSME competitiveness as well as mediating the relationship between green innovation and economic growth. Nonetheless, limited resources, constrained technological access, and weak regulatory support remain major obstacles. Theoretically, the study advances the literature on the integration of green innovation and adaptive strategies in MSMEs in developing countries. Practically, it offers implications for policy and managerial strategies to strengthen MSME competitiveness and sustainability through multi-stakeholder collaboration and policy incentives.
Green Leadership and Sustainable Business Performance in MSMEs: The Mediating Role of Green Innovation and the Moderating Role of Organizational Culture Lukman Hakim; Sabil Sabil; Amin Setio Lestiningsih; Dwiyatmoko Puji Widodo; Sugiyah Sugiyah; Devy Sofyanty
Dinasti International Journal of Economics, Finance & Accounting Vol. 7 No. 4 (2026): Dinasti International Journal of Economics, Finance & Accounting (September - O
Publisher : Dinasti Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.38035/dijefa.v7i4.7367

Abstract

This study aims to analyze the effect of Green Leadership on Sustainable Business Performance in micro, small, and medium-sized enterprises (MSMEs), with Green Innovation serving as a mediating mechanism and Organizational Culture as a moderating variable. The study adopts a quantitative explanatory research design involving 100 respondents consisting of MSME owners/managers and employees. Data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS) with the assistance of SmartPLS 4.0. The results indicate that Green Leadership has a positive and significant effect on Green Innovation (β = 0.656; p < 0.001) and Sustainable Business Performance (β = 0.487; p < 0.001). Green Innovation also has a positive and significant effect on Sustainable Business Performance (β = 0.276; p = 0.004). Meanwhile, Green Leadership does not have a significant effect on Organizational Culture (β = 0.166; p = 0.118), and Organizational Culture does not significantly affect Sustainable Business Performance (β = −0.085; p = 0.308). Organizational Culture has a positive and significant direct effect on Green Innovation (β = 0.147; p = 0.048), but does not moderate either the Green Leadership–Green Innovation relationship or the Green Innovation–Sustainable Business Performance relationship. These findings highlight the importance of Green Leadership and Green Innovation in enhancing sustainable business performance among MSMEs.
Co-Authors Amin Setio Lestiningsih Devy Sofyanty Dwiyatmoko Puji Widodo Lukman Hakim Sabil Sabil