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