IMPROVING GREEN INNOVATION PERFORMANCE BY SMES IN INDONESIA

Abstract

This article aims at improving the performance of green innovation by SMEs in Indonesia. It describes new environmental issues that have received significant interest in the green operation, based on the great interest in the topic, explicitly on green innovation practices in SMEs in Indonesia, enabling the current study proposes the evaluation of green innovation practices focusing on human resource management and government regulation and innovation processes in green marketing orientation. Using an empirical interpretation designed under a quantitative method with hypothesis testing using the partial least squares structural equation modeling (PLS-SEM) method with a total sample of 163 SMEs, the authors describe the obtained results that green marketing orientation, government regulation, and human resource management significantly and positively affect the green innovation platform of SDGs in SMEs in Indonesia. Government regulation mediated the relationship between green marketing orientation and human resource management in Indonesian SMEs’ green innovation. The authors illustrate that the proposed green innovation by SMEs in Indonesia makes it possible to improve that women significantly contribute to pushing the economic 86 respondents (52,8%), with young age respondents 90 (55.2%). The new method effectiveness evaluation confirmed by the calculations with the Directorate General of Treasury, Ministry of Finance RI data showed women managed 95% of SMEs of 64 million SME owners since 2021. New research results indicate that green innovation is expected to be a transformation of the re-establishment of global developments beneficial for future generations and can be used for SMEs, also playing a prominent role in maintaining economic stability. Novelty and scientific contribution of 61.1% as a pillar of national economic growth to accelerate the sustainable development progress.