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p-Index From 2021 - 2026
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All Journal Journal of Economics, Entrepreneurship, Management Business and Accounting
Ricky Agung Cahyono
Universitas Muhammadiyah Ponorogo, Indonesia
Economics, Econometrics & Finance

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Green HRM, Innovation Capability, and Sustainable Performance in Traditional Food-Processing MSMEs Ricky Agung Cahyono; Sri Hartono; Wijianto Wijianto
Journal of Economics, Entrepreneurship, Management Business and Accounting Vol 4 No 6 (2026): Volume 4, Issue 6, November 2026
Publisher : CV. Sakura Digital Nusantara

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61255/jeemba.v4i6.2150

Abstract

Purpose – This study examines whether owner-led Green Human Resource Management (Green HRM) is associated with perceived comparative Sustainable Business Performance through Green Innovation Capability in traditional food-processing MSMEs in Ponorogo, Indonesia. Design/methodology/approach – A cross-sectional key-informant survey produced 301 eligible key-informant responses under a one-response-per-firm protocol; firm-level uniqueness could not be independently verified due to the absence of business identifiers in the exported dataset. PLS-SEM was estimated using SmartPLS 4 (Ringle et al., 2024). A disjoint two-stage higher-order specification represents Green HRM through four first-order dimensions and Sustainable Business Performance through economic, environmental, and social dimensions. Nonparametric bootstrapping used 3,000 resamples. Finding/Results – Green HRM was positively associated with Green Innovation Capability (β = 0.599), Green Innovation Capability was positively associated with Sustainable Business Performance (β = 0.347), and the direct Green HRM–Sustainable Business Performance association remained positive (β = 0.484). The indirect association was 0.208, which supported complementary partial statistical mediation. The model explained 35.8% of Green Innovation Capability and 55.6% of Sustainable Business Performance. Originality/Value – The study refines prior Green HRM research by examining informal owner-led workforce practices, distinguishing a repeatable capability from realized green innovation output, and evaluating multidimensional perceived sustainable performance in resource-constrained traditional food-processing MSMEs.
Co-Authors Sri Hartono Wijianto Wijianto