The Impact of Green Entrepreneurial Orientation and Green Market Orientation on SMEs Performance: The Role of Green Innovation
Rizqi Rahmawati, Widji Astuti, Fajar Supanto

Merdeka Malang University, Indonesia

Abstract

Environmental protection has become a market competition issue and affects the performance of SMEs. Therefore, the concepts of green entrepreneurial orientation, green innovation, and green marketing, among others, have received much attention in business research over the past several decades. Although many researchers have investigated direct correlations between green entrepreneurial orientation, green market orientation, green innovation, and SMEs performance, indirect connections through green innovation are few in the literature. This study^s purpose is to investigate whether green entrepreneurial orientation and green market orientation affect SMEs performance through the mediation of green innovation. As a quantitative study, partial least squares structural equation modelling (PLS-SEM) is used to test the hypotheses. Data were collected using both questionnaires from Batik SME business owners in Ponorogo City. This research had 30 participants. The results of this study show that green entrepreneurial orientation and green market orientation have an impact on SMEs performance, both directly and indirectly. SME performance is also directly driven by green innovation, and green entrepreneurial orientation and green market orientation are also influenced by green innovation.

Keywords: Green enterpreneurial orientation, Green market orientation, Green Innovation, SMEs Performance

Topic: Green Management and Business