Peran Circular Economy Orientation dan Eco-Innovation Capability terhadap Sustainable Business Performance melalui Green Competitive Advantage pada UMKM Sektor Produksi

Adji Seputro; Ninik Dwi Atmini; Nyoman Sri Padmini

doi:10.61132/jukerdi.v2i3.1545

Authors

Adji Seputro ITB Semarang
Ninik Dwi Atmini ITB Semarang
Nyoman Sri Padmini ITB Semarang

DOI:

https://doi.org/10.61132/jukerdi.v2i3.1545

Keywords:

Circular Economy Orientation, Eco-Innovation Capability, Green Competitive Advantage, Production-Sector SMEs, Sustainable Business Performance

Abstract

Sustainability demands encourage production-sector SMEs to develop business practices that balance economic performance with environmental and social responsibilities. This study aims to analyze the role of Circular Economy Orientation and Eco-Innovation Capability in enhancing Sustainable Business Performance through Green Competitive Advantage. This study employed a quantitative approach with an explanatory research design. Data were collected using a Likert-scale questionnaire from 100 owners or managers of production-sector SMEs selected through purposive sampling and analyzed using SEM-PLS. The results indicate that Circular Economy Orientation and Eco-Innovation Capability have positive and significant effects on Green Competitive Advantage and Sustainable Business Performance. Green Competitive Advantage also has a positive and significant effect on Sustainable Business Performance. Furthermore, Green Competitive Advantage partially mediates the relationships between Circular Economy Orientation and Eco-Innovation Capability and Sustainable Business Performance. These findings demonstrate that improving sustainable business performance requires not only resource efficiency and environmentally friendly innovation but also the ability of SMEs to transform sustainability practices into competitive advantages. This study highlights the importance of integrating circular orientation, eco-innovation capability, and green competitive advantage to strengthen the long-term sustainability of production-sector SMEs.

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