Abstract

The aims of this paper is to analyze the effect of the relationship between knowledge and on green management and its implication on competitive advantage and sustainable performannce. This study used a quantitative research approach that explains the phenomenon by collecting numerical data analyzed using structural equation modelling (SEM) with the WarpPLS program application. The population in this study were small or medium business owners (general managers) in the industrial sector in the city of Semarang. Knowledge and green management have a significant effect on competitive advantages and competitive advantages has a significant effect on the sustainability performance. It means that the knowledge and green management simultaneously shows a significant effect on competitive advantages and sustainability performance. The application of green management will also improve sustainability performance. The originality of this study is on the testing of simultaneous relationships between the factors making up the application of green management, namely knowledge as well as the impact of green management implementation on sustainability performance.

Highlights

  • Environmental problems, nowadays, have become problems that occur in almost all over the world

  • Based on the results of the study, it can be concluded that MSMEs that apply green management in their business operations can improve company performance through the ability to compete with these MSMEs

  • The knowledge in this study defines the concept of how to manage an environmentally friendly business. This knowledge can be obtained through direct experience in managing an environmentally friendly business, experience helping business partners in managing their business, experience in participating in entrepreneurship training and various information in online media. This green management activity can increase the competitiveness of MSMEs, such as having exclusive relationships with suppliers / suppliers for the acquisition of environmentally friendly raw materials, having exclusive relationships with distributors / retailers to distribute finished goods, having superior knowledge to manage business processes / produce quality products at lower costs, have a strong market position compared to competitors and have a good reputation with consumers

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Summary

Introduction

Environmental problems, nowadays, have become problems that occur in almost all over the world. Environmental pollution due to business activities that are not friendly to the environment will in the long term reduce the quality of human life today. At this time, building a green business is no longer an image but has become a necessity if a company wants to remain profitable and live a long life. Green companies can handle business turbulence no matter how hard. This is because the existence of a green business will continue to be maintained by all its stakeholders: employees, consumers, communities, suppliers, government, and even non-governmental organizations

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