Environmental damage has become a significant global challenge, encouraging SME actors to adopt environmentally friendly business practices. This study examines the influence of green knowledge and green transformational leadership on environmental performance, mediated by green creativity in SMEs of Grebeg UMKM DIY. Using quantitative methods, data was collected from 43 SMEs through questionnaires and analyzed using Partial Least Square (PLS). Results show that green knowledge and green transformational leadership positively affect both environmental performance and green creativity. Green creativity positively influences environmental performance and mediates the effect of green transformational leadership on environmental performance. However, it does not mediate the relationship between green knowledge and environmental performance. This research highlights the importance of green transformational leadership and creativity in enhancing SMEs' environmental performance. Future studies should expand the sample to other SME sectors and explore additional mediating variables.
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