TY - JOUR
T1 - The role of green innovation between green market orientation and business performance
T2 - its implication for open innovation
AU - Tjahjadi, Bambang
AU - Soewarno, Noorlailie
AU - Hariyati, Hariyati
AU - Nafidah, Lina Nasihatun
AU - Kustiningsih, Nanik
AU - Nadyaningrum, Viviani
N1 - Publisher Copyright:
© 2020 by the authors. Licensee MDPI, Basel, Switzerland.
PY - 2020/12
Y1 - 2020/12
N2 - The focus of this research was to investigate the effect of green market orientation on business performance. For that purpose, this research tested that green market orientation has a direct effect on business performance, that green market orientation affects green innovation, and that green innovation affects business performance. As a quantitative research, partial least squares structural equation modeling (PLS–SEM) was used to test the hypotheses. Data were collected by using both online and offline questionnaires from owners/managers of the manufacturing micro, small-and medium-sized enterprises (MSMEs) in the East Java Province of Indonesia. A total of 175 respondents participated in this study. The results show that green market orientation has a positive and direct effect on business performance. The results empirically support the theory of sustainability and entrepreneurship in the research setting of Indonesian MSMEs. The results also imply that the owners/managers of MSMEs need to balance economic, environmental, and social issues in their business. In the era of sustainable development and environmental awareness, manufacturing MSMEs need to adopt a green market orientation and carry out green innovation in their business processes to obtain a better business performance.
AB - The focus of this research was to investigate the effect of green market orientation on business performance. For that purpose, this research tested that green market orientation has a direct effect on business performance, that green market orientation affects green innovation, and that green innovation affects business performance. As a quantitative research, partial least squares structural equation modeling (PLS–SEM) was used to test the hypotheses. Data were collected by using both online and offline questionnaires from owners/managers of the manufacturing micro, small-and medium-sized enterprises (MSMEs) in the East Java Province of Indonesia. A total of 175 respondents participated in this study. The results show that green market orientation has a positive and direct effect on business performance. The results empirically support the theory of sustainability and entrepreneurship in the research setting of Indonesian MSMEs. The results also imply that the owners/managers of MSMEs need to balance economic, environmental, and social issues in their business. In the era of sustainable development and environmental awareness, manufacturing MSMEs need to adopt a green market orientation and carry out green innovation in their business processes to obtain a better business performance.
KW - Business performance
KW - Entrepreneurship theory
KW - Green innovation
KW - Green market orientation
KW - No poverty
KW - Sustainability theory
UR - http://www.scopus.com/inward/record.url?scp=85097291867&partnerID=8YFLogxK
U2 - 10.3390/joitmc6040173
DO - 10.3390/joitmc6040173
M3 - Article
AN - SCOPUS:85097291867
SN - 2199-8531
VL - 6
SP - 1
EP - 18
JO - Journal of Open Innovation: Technology, Market, and Complexity
JF - Journal of Open Innovation: Technology, Market, and Complexity
IS - 4
M1 - 173
ER -
