Improving SME performance through entrepreneurial orientation and green innovation: The mediating role of green knowledge sharing

Rozalina Novianty, Yustinus Budi Hermanto

Article ID: 7733
Vol 8, Issue 11, 2024

VIEWS - 61 (Abstract) 47 (PDF)

Abstract


This study investigates the impact of entrepreneurial orientation and green innovation on the performance of SMEs. This research explores the wood waste industry in Ngawi, an area that has never been studied before, thus providing a new perspective and unique local relevance. These findings underscore the critical role of entrepreneurial orientation and green innovation in driving sustainable business growth and improving SME performance. The results show that both entrepreneurial orientation and green innovation having a positive and significant link with SMEs performance. Further, the study reveals that the relationship between entrepreneurial orientation and green innovation having a positive and significant link with SMEs performance mediated by knowledge-sahring. The study also highlights the importance of larger sample sizes, and external factors to provide more comprehensive insights for practitioners and policymakers.


Keywords


entrepreneurial orientation; green innovation; smes performance; green knowledge sharing; sustainability; competitive advantage

Full Text:

PDF


References


Ahmed, R. R., Streimikiene, D., & Zheng, X. (2021). The Impact of Proactive Environmental Strategy on Competitive and Sustainable Development of Organizations. Journal of Competitiveness, 13(4), 5–24. https://doi.org/10.7441/joc.2021.04.01

Ahmed, R. R., Streimikiene, D., Qadir, H., et al. (2022). Effect of green marketing mix, green customer value, and attitude on green purchase intention: evidence from the USA. Environmental Science and Pollution Research, 30(5), 11473–11495. https://doi.org/10.1007/s11356-022-22944-7

Albort-Morant, G., Leal-Rodríguez, A. L., & De Marchi, V. (2018). Absorptive capacity and relationship learning mechanisms as complementary drivers of green innovation performance. Journal of Knowledge Management, 22(2), 432–452. https://doi.org/10.1108/jkm-07-2017-0310

Alhadid, A. Y., & Abu-Rumman, A. H. (2014). The Impact of Green Innovation on Organizational Performance, Environmental Management Behavior as a Moderate Variable: An Analytical Study on Nuqul Group in Jordan. International Journal of Business and Management, 9(7). https://doi.org/10.5539/ijbm.v9n7p51

Appiah, M. K., Sam, A., Twum, E., et al. (2023). Modelling the influencing of green entrepreneurship orientation on sustainable firm performance: a moderated mediation model. Economic Research-Ekonomska Istraživanja, 36(2). https://doi.org/10.1080/1331677x.2023.2179094

Arenal, A., Feijoo, C., Moreno, A., et al. (2019). An academic perspective on the entrepreneurship policy agenda: themes, geographies and evolution. Journal of Entrepreneurship and Public Policy, 9(1), 65–93. https://doi.org/10.1108/jepp-06-2019-0056

Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108

Cher-Min Fong. (2012). The impact of green learning orientation on proactive environmental innovation capability and firm performance. African Journal of business management, 6(3). https://doi.org/10.5897/ajbm10.544

Covin, J. G., & Slevin, D. P. (1991). A Conceptual Model of Entrepreneurship as Firm Behavior. Entrepreneurship Theory and Practice, 16(1), 7–26. https://doi.org/10.1177/104225879101600102

Crossan, M. M. (1996). The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation. Journal of International Business Studies, 27(1), 196–201. https://doi.org/10.1057/jibs.1996.13

Eiadat, Y., Kelly, A., Roche, F., et al. (2008). Green and competitive? An empirical test of the mediating role of environmental innovation strategy. Journal of World Business, 43(2), 131–145. https://doi.org/10.1016/j.jwb.2007.11.012

Fahim, N. B. A., & Baharun, R. Bin. (2016). Market learning orientation and entrepreneurial orientation effects towards absorptive capacity and innovative capability on firm performance. International Business Management, 10(17).

Field, A. (2013). Discovering statistics using IBM SPSS statistics. SAGE Publications Ltd.

Guo, Y., Wang, L., & Chen, Y. (2020). Green Entrepreneurial Orientation and Green Innovation: The Mediating Effect of Supply Chain Learning. SAGE Open, 10(1), 215824401989879. https://doi.org/10.1177/2158244019898798

Hockerts, K., & Wüstenhagen, R. (2010). Greening Goliaths versus emerging Davids — Theorizing about the role of incumbents and new entrants in sustainable entrepreneurship. Journal of Business Venturing, 25(5), 481–492. https://doi.org/10.1016/j.jbusvent.2009.07.005

Idrees, H., Xu, J., & Andrianarivo Andriandafiarisoa Ralison, N. A. (2023). Green entrepreneurial orientation and knowledge creation process as enablers of green innovation performance: the moderating role of resource orchestration capability. European Journal of Innovation Management. https://doi.org/10.1108/ejim-02-2023-0143

Ilyas, G. B., Munir, A. R., & Sobarsyah, M. (2017). Role of strategic leadership, entrepreneurial orientation, and innovation on small and medium enterprises performance. International Journal of Economic Research, 14(15).

Jiang, W., Chai, H., Shao, J., et al. (2018). Green entrepreneurial orientation for enhancing firm performance: A dynamic capability perspective. Journal of Cleaner Production, 198, 1311–1323. https://doi.org/10.1016/j.jclepro.2018.07.104

Kammerer, D. (2009). The effects of customer benefit and regulation on environmental product innovation. Ecological Economics, 68(8–9), 2285–2295. https://doi.org/10.1016/j.ecolecon.2009.02.016

Khan, P. A., Johl, S. K., & Akhtar, S. (2021). Firm Sustainable Development Goals and Firm Financial Performance through the Lens of Green Innovation Practices and Reporting: A Proactive Approach. Journal of Risk and Financial Management, 14(12), 605. https://doi.org/10.3390/jrfm14120605

Kratzer, J., Meissner, D., & Roud, V. (2017). Open innovation and company culture: Internal openness makes the difference. Technological Forecasting and Social Change, 119, 128–138. https://doi.org/10.1016/j.techfore.2017.03.022

Lee, S. M., Olson, D. L., & Trimi, S. (2012). Co‐innovation: convergenomics, collaboration, and co‐creation for organizational values. Management Decision, 50(5), 817–831. https://doi.org/10.1108/00251741211227528

Li, H., Li, Y., Sarfarz, M., et al. (2022). Enhancing firms’ green innovation and sustainable performance through the mediating role of green product innovation and moderating role of employees’ green behavior. Economic Research-Ekonomska Istraživanja, 36(2). https://doi.org/10.1080/1331677x.2022.2142263

Lin, Y.-H., & Chen, H.-C. (2018). Critical factors for enhancing green service innovation. Journal of Hospitality and Tourism Technology, 9(2), 188–203. https://doi.org/10.1108/jhtt-02-2017-0014

Lu, J., Ren, L., Zhang, C., et al. (2020). Modified Carroll’s pyramid of corporate social responsibility to enhance organizational performance of SMEs industry. Journal of Cleaner Production, 271, 122456. https://doi.org/10.1016/j.jclepro.2020.122456

Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the Entrepreneurial Orientation Construct and Linking It to Performance. The Academy of Management Review, 21(1), 135. https://doi.org/10.2307/258632

Makhloufi, L., Laghouag, A. A., Meirun, T., et al. (2021). Impact of green entrepreneurship orientation on environmental performance: The natural resource‐based view and environmental policy perspective. Business Strategy and the Environment, 31(1), 425–444. Portico. https://doi.org/10.1002/bse.2902

Miller, D. (2011). Miller (1983) revisited: A reflection on EO research and some suggestions for the future. Entrepreneurship: Theory and Practice, 35(5).

Nonaka, I., & Takeuchi, H. (1995). Creating Knowledge in Practice. The Knowledge-Creating Company, 95–123. https://doi.org/10.1093/oso/9780195092691.003.0004

Patton, M. Q. (2015). Qualitative research and evaluation methods: Theory and practice; Fourth Edition. SAGE Publications, Inc.

Prodanova, J., San-Martín, S., & Jimenez, N. (2018). Are you technologically prepared for mobile shopping? The Service Industries Journal, 41(9–10), 648–670. https://doi.org/10.1080/02642069.2018.1492561

Qiu, L., Jie, X., Wang, Y., et al. (2019). Green product innovation, green dynamic capability, and competitive advantage: Evidence from Chinese manufacturing enterprises. Corporate Social Responsibility and Environmental Management, 27(1), 146–165. Portico. https://doi.org/10.1002/csr.1780

Rajalahti, T., & Kvalheim, O. M. (2011). Multivariate data analysis in pharmaceutics: A tutorial review. International Journal of Pharmaceutics, 417(1–2), 280–290. https://doi.org/10.1016/j.ijpharm.2011.02.019

Revell, A., Stokes, D., & Chen, H. (2009). Small businesses and the environment: turning over a new leaf? Business Strategy and the Environment, 19(5), 273–288. Portico. https://doi.org/10.1002/bse.628

Schiederig, T., Tietze, F., & Herstatt, C. (2012). Green innovation in technology and innovation management – an exploratory literature review. R&D Management, 42(2), 180–192. Portico. https://doi.org/10.1111/j.1467-9310.2011.00672.x

Sukarno, G. (2018). Improving the marketing performance of umkm through the role of the environment, product innovation and marketing strategy creativity (Indonesian). Jurnal Ekonomi Dan Keuangan, 15(3), 332–351. https://doi.org/10.24034/j25485024.y2011.v15.i3.372

Tamanna, K., Raman, S. N., Jamil, M., et al. (2020). Utilization of wood waste ash in construction technology: A review. Construction and Building Materials, 237, 117654. https://doi.org/10.1016/j.conbuildmat.2019.117654

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7).

Tejada, J. J., Raymond, J., & Punzalan, B. (2012). On the Misuse of Slovin’s Formula. The Philippine Statistician, 61(1).

Wales, W. J., Gupta, V. K., & Mousa, F.-T. (2011). Empirical research on entrepreneurial orientation: An assessment and suggestions for future research. International Small Business Journal: Researching Entrepreneurship, 31(4), 357–383. https://doi.org/10.1177/0266242611418261

Wang, S., Abbas, J., Sial, M. S., et al. (2022). Achieving green innovation and sustainable development goals through green knowledge management: Moderating role of organizational green culture. Journal of Innovation & Knowledge, 7(4), 100272. https://doi.org/10.1016/j.jik.2022.100272

Weng, H.-H., Chen, J.-S., & Chen, P.-C. (2015). Effects of Green Innovation on Environmental and Corporate Performance: A Stakeholder Perspective. Sustainability, 7(5), 4997–5026. https://doi.org/10.3390/su7054997

Xie, X., Huo, J., & Zou, H. (2019). Green process innovation, green product innovation, and corporate financial performance: A content analysis method. Journal of Business Research, 101, 697–706. https://doi.org/10.1016/j.jbusres.2019.01.010




DOI: https://doi.org/10.24294/jipd.v8i11.7733

Refbacks

  • There are currently no refbacks.


Copyright (c) 2024 Rozalina Novianty, Yustinus Budi Hermanto

License URL: https://creativecommons.org/licenses/by/4.0/

This site is licensed under a Creative Commons Attribution 4.0 International License.