Jurnal Minds: Manajemen Ide dan Inspirasi
Vol 13 No 1 (2026): June

Green Procurement and Eco-Friendly Technology as Drivers of SME Sustainability: The Mediating Role of Circular Economy

Shavab, Firli Agusetiawan (Unknown)
Tanjung, Akbar (Unknown)



Article Info

Publish Date
13 Jun 2026

Abstract

Small and Medium Enterprises (SMEs) support regional economic development, yet their sustainability remains constrained by resource inefficiency, limited technological capability, and rising environmental pressure. This study offers novelty by explaining how Green Procurement and Environmentally Friendly Technology strengthen SME Sustainability through Circular Economy practices, integrating the Resource-Based View and Natural Resource-Based View. Using a quantitative design with Partial Least Squares Structural Equation Modeling, data were collected from 179 SME owners and managers across various sectors in Banten Province, Indonesia. The findings show that Green Procurement has no significant direct effect on SME Sustainability but significantly promotes Circular Economy practices, which then enhance sustainability. Environmentally Friendly Technology positively affects both Circular Economy and SME Sustainability, while Circular Economy mediates both proposed relationships. The study implies that SMEs should integrate green procurement, environmentally friendly technology, and circular economy practices to strengthen long-term sustainability in developing regions.

Copyrights © 2026






Journal Info

Abbrev

minds

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

Jurnal Minds: Manajemen Ide dan Inspirasi is a scientific and open-access journal (CC-BY clearance), published by the Management Department of the Faculty of Islamic Economics and Business, Universitas Islam Negeri Alauddin Makassar, Indonesia. It is a bi-annual publication, i.e., by June and ...