Driving Sustainable Business: The Role of Green Innovation in MSMEs in Bandung, Indonesia

Lathifinda Rosari Mahida () and Grisna Anggadwita ()
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Lathifinda Rosari Mahida: Telkom University, School of Economics and Business
Grisna Anggadwita: Telkom University, School of Economics and Business

Chapter Chapter 5 in Economic Resilience and Sustainability - Vol. 2, 2026, pp 63-85 from Springer

Abstract: Abstract This study aims to examine the influence of green innovation implementation on sustainable business and explore the mediating role of environmental awareness. A quantitative method was employed by distributing questionnaires to 132 Micro, Small, and Medium Enterprises (MSMEs) in Bandung City. Using Partial Least Square-Structural Equation Modeling (PLS-SEM) for data analysis, this study finds that green innovation positively and significantly affects sustainable business, both directly and indirectly mediated by environmental awareness. This study indicates that implementing green innovation can enhance the sustainability of MSMEs. This study provides academic and practical implications by highlighting the potential and importance of green innovation in supporting sustainable business, serving as a reference for policymakers to improve MSME competitiveness and sustainability.

Keywords: Sustainable business; Environmental awareness; Green innovation; MSMEs (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-032-04214-9_5

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DOI: 10.1007/978-3-032-04214-9_5

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