Adopting Green Innovation in Tourism SMEs: Integrating Pro-Environmental Planned Behavior and TOE Model

Abstract

Aim/Purpose: This study investigated factors influencing the intention to engage in green innovation among small and medium enterprises (SMEs) in the tourism sector, using an integrated approach from the pro-environmental planned behavior (PEPB) and technology organization environment (TOE) models. Background: Green innovation is a long-term strategy aimed at addressing environmental challenges in the Indonesian tourism sector, especially those related to SMEs in culinary, accommodation, transportation, and creative industries. While prior research primarily focused on innovation characteristics and various behavioral intentions towards new technologies, this study pioneered an approach to understanding green innovation practices among SMEs by examining behavioral intention and the influence of internal organizational and external environmental factors. This was achieved through the PEPB model, which extends the theory of planned behavior (TPB) by incorporating perceived authority support and perceived environmental concern and integrating it with the TOE model. This comprehensive approach was crucial for understanding SME motivations, needs, and challenges in adopting green innovation, thereby supporting environmental sustainability. Methodology: Data were collected through offline and online questionnaires and interviews with 405 SMEs that had implemented green innovation as respondents. The theoretical model was tested using partial least squares structural equation modeling (PLS-SEM) with top-level constructs. Contribution: This research contributed to the development and validation of an integrated model for green innovation in SMEs, offering insights and recommendations for all stakeholders in the tourism sector to formulate effective green innovation strategies. Findings: This research revealed that the integrated model of pro-environmental planned behavior and technology organization environment successfully explained 71% of the factors influencing the intention to engage in green innovation for SMEs in the tourism sector. Perceived authority support emerged as the strongest factor, while perceived behavioral control was identified as a weaker factor. Recommendations for Practitioners: The research findings recommended that SMEs in the tourism sector focus on customer satisfaction and operational efficiency and optimize the recruitment and training processes of resources to maximize success in adopting environmentally friendly innovations. Meanwhile, for the government, providing support, incentives, and stringent environmental regulations could encourage sustainable business practices. Recommendation for Researchers: The research findings recommended that SMEs in the tourism sector focus on customer satisfaction and operational efficiency and optimize the recruitment and training processes of resources to maximize success in adopting environmentally friendly innovations. Meanwhile, for the government, providing support, incentives, and stringent environmental regulations could encourage sustainable business practices. Impact on Society: Examining the factors influencing the intention to engage in green innovation among SMEs in the tourism sector carried significant social implications. The findings contributed to recommending strategies for businesses and stakeholders such as the government, investors, and tourists to collectively strive to minimize environmental damage in tourist areas through the implementation of green innovation. Future Research: There are several promising avenues to explore to enhance future research. Expanding the scope to include diverse regions and industries and using additional approaches, such as leadership theory and management commitment theories, can increase the R-squared value. Additionally, broadening the profile of interviewees to obtain a more comprehensive understanding of the intention to engage in green innovation should be considered.