<![CDATA[UNESCO recognized Batik, Indonesian cultural heritage, as aesthetically and symbolically significant, serving a vital economic role. However, conventional batik production methods pose serious environmental issues due to the usage of toxic chemicals and inadequate waste management. The green product concept comprising green input, green process, and green output have emerged as a sustainable solution. This quantitative study examines the impact of three green aspects on the performance of Micro Small Medium Enterprises (MSMEs), using competitive advantage as a mediating variable. Data were gathered from 39 batik Micro Small Medium Enterprises in Solo, Bandar Lampung, and Serang utilizing surveys with a five-point Likert scale. Then, data were analyzed using (PLS-SEM). The results indicate that green process and green output have a significant effect on both competitive advantage and MSMEs performance. In contrast, green input does not show a significant effect. Furthermore, competitive advantage is proven to have a strong positive impact on MSME performance. In the findings, while environmentally friendly raw materials are important, consumers place greater emphasis on visible product attributes such as quality, durability, eco labels, and official certifications. Therefore, batik enterprises should integrate sustainable practices not only in inputs, but also crucially in the processes and outputs to enhance competitiveness, build customer trust, and ensure long term business sustainability.]]>
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