Novatio : Journal of Management Technology and Innovation
Vol. 3 No. 3 (2025): July 2025

Green Technology Innovation and Sustainable Performance: A Resource-Based Mediation Model of Circular Economy Adoption

Noviany, Henny (Unknown)
Safri (Unknown)



Article Info

Publish Date
31 Jul 2025

Abstract

This study investigates how Green Technology Innovation (GTI) enhances Sustainable Business Performance (SBP) through the mediating role of Circular Economy (CE) practices, offering an integrative framework that addresses firm-level sustainability strategy. A quantitative, cross-sectional survey was conducted among 250 manufacturing firms. Using validated instruments, data were collected on GTI activities, CE implementation, and SBP outcomes. Structural Equation Modeling–Partial Least Squares (SEM-PLS) was employed to test direct and indirect relationships, with bootstrapping applied to assess mediation effects.Findings reveal that GTI positively influences both CE adoption (β = 0.64, p < 0.001) and SBP (β = 0.32, p < 0.01). CE also directly enhances SBP (β = 0.58, p < 0.001) and partially mediates the GTI–SBP relationship (indirect β = 0.37, p < 0.001). Sectoral and geographic variations in adoption were noted, with larger and high-tech firms demonstrating higher engagement. The results validate the Natural Resource–Based View (NRBV), indicating that firms with integrated GTI–CE strategies gain competitive and environmental advantages. CE was found to serve as both a performance enabler and a resilience mechanism. GTI and CE are complementary strategies for achieving SBP. Firms should embed CE into their innovation strategies to maximize outcomes. Policymakers are encouraged to promote supportive regulatory and fiscal environments. Future studies should explore longitudinal effects and sector-specific dynamics.

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Journal Info

Abbrev

novatio

Publisher

Subject

Decision Sciences, Operations Research & Management

Description

Novatio : Journal of Management Technology and Innovation with ISSN Number 3030-8674 (Online) published by Indonesian Scientific Publication, The journal is dedicated to publishing original research papers, conceptual articles, and high-quality case studies focused on technology management and ...