The Impact of Green Organization Capabilities on MSME Competitive Advantage: Mediating Role of Green Innovation

DOI

10.2991/978-94-6463-692-5_7How to use a DOI?

Keywords

Environmentally Friendly Organization Capabilities; competitive advantage; green innovation; MSMEs

Abstract

The increasing environmental pollution caused by MSME waste, such as tofu, tempeh, rattan, and other factories, has raised concerns and an urgent need for sustainable practices. This research aims to build a new framework for Environment-Friendly Organization Capabilities for MSMEs and to address the research gap in the relationship between the capacity of environmentally friendly organizations and Competitive Advantage while exploring the mediating effects of Green Innovation. The novelty of this study explains the innovations made by MSMEs in utilizing waste from MSME production to become more economically valuable. Research methods using Structural Equation Modeling (SEM), with sample of 339 respondents. The results of the study show that green organization capabilities have a direct influence on competitive advantage and indirect effect through green innovation. The conclusion from the results of this study is that if MSMEs want to increase their competitive advantage, they must be able to carry out green organization capabilities and green innovation. MSMEs must choose raw materials that do not pollute the environment and are environmentally friendly, and waste from MSMEs is collected somewhere, and then special incineration is made. The ashes are made for a mixture of paving blocks, while for the disposal of tofu and tempeh factory waste is disposed of in places far from residential areas so as not to disturb the health of the surrounding community.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Yanah Yanah
AU  - Bambang Tjahjadi
PY  - 2025
DA  - 2025/05/01
TI  - The Impact of Green Organization Capabilities on MSME Competitive Advantage: Mediating Role of Green Innovation
BT  - Proceedings of the 12th Gadjah Mada International Conference on Economics and Business (GAMAICEB 2024)
PB  - Atlantis Press
SP  - 93
EP  - 117
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-692-5_7
DO  - 10.2991/978-94-6463-692-5_7
ID  - Yanah2025
ER  -