Accelerative Capacity of Keyresources Industry 4.0 in Metropolitan Culinary Micro-Small Sector and Green Business Sustainability Impact

Abstract

Indonesia’s MSME sector is torn between economic growth and environmental damage. Industrial Revolution 4.0 encourages MSMEs, including in the culinary sector, to integrate business and social values with the principle of circularity. This study analyzes the influence of Industry 4.0 key resources on Culinary MSMEs in Jakarta on the circular economy and sustainable business. A quantitative approach was used by surveying Culinary MSME owners in Jakarta, taking 82 samples by random sampling. The data were analyzed using structural equation modeling-partial least square (SEM-PLS). The analysis results show that the key resources of Industry 4.0, such as production system management, HR leadership, environmentally friendly business operations, and information technology, significantly affect the adoption of Industry 4.0 and the establishment of Sustainable Culinary Production Systems. The adoption of Industry 4.0 also impacts circular economy capabilities and sustainable business. Similarly, Sustainable Culinary Production Systems contribute to circular economy capabilities and sustainable business.