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All Journal Journal of Digital Economy and Management Practices
Dyah Arini Rudingtyas
Universitas Negeri Malang
Economics, Econometrics & Finance

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MSME Perceptions of Green Business Practices and Internationalization Readiness: Evidence from East Java, Indonesia Dyah Arini Rudingtyas; Sudarmiatin Sudarmiatin; Heri Pratikto
Journal of Digital Economy and Management Practices Vol. 2 No. 1 (2026)
Publisher : Asosiasi Dosen Peneliti Ilmu Ekonomi Dan Bisnis Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.54099/jdemp.v2i1.572

Abstract

Purpose – The study synthesizes institutional, behavioral and capability based perspectives to position SMEs’ perceptions as a foundational cognitive mechanism shaping green business adoption and international readiness. Methodology/approach – This study uses a descriptive quantitative approach with a cross sectional survey design that aims to describe the phenomenon of perception of MSME behavior towards green business practices in the context of internationalization. The research data was obtained from the results of a survey of 143 MSMEs in East Java which were documented in the observation dataset. The research analysis unit is the owner or main manager of MSMEs, considering that in the MSME structure, strategic decisions are very centralized on individual decision makers. Findings – The findings indicate that SMEs generally demonstrate a positive awareness of enviromental responsibility and the importance of green practices. Nevertheless, perceptions regarding direct economic benefitd and long term strategic value remain moderate, particulary among micro and small entreprises. This perception gap contribute to cautious attitudes toward adopting green business practices as part of internationalization strategies. The results suggest that SMEs with broader market exposure exhibit more strategic perceptions of green practices as a means of meeting international standards and gaining competitive advantage.Novelty/value – This study contributes to literature by positioning SMEs’ perceptions as a central cognitive mechanism in green business adoption an internationalization readiness by integrates multiple theoretical perspectives. . Keywords : Green business practices; SMEs; Perception; sustainability, internationalization, East Java  
Co-Authors Heri Pratikto Sudarmiatin