Paid attention but needed support: Environmental awareness of Indonesian MSMEs during pandemic

Abstract

AbstractThis study aims to investigate the factors that instigate micro, small and medium enterprises (MSMEs) environmental awareness during the Covid‐19 pandemic from the attention based view perspective as the main theoretical lens. This topic is motivated by the increasing plastic use by MSMEs during the pandemic due to mobility restrictions. A survey was performed and generated in 485 usable responses which were then analyzed using PLS‐SEM to find the answers of whether the awareness of MSME owners or managers, business motivations, government regulations, social media and implementation constraints influence environmentally friendly practices by MSMEs during the pandemic. Consistent with the predictions based on the attention based view, the results show that all five factors contribute to the environmentally friendly practices by MSMEs during the pandemic. In addition, a support system from the government is needed to increase awareness and to turn it into actions, especially in the form of facilities, infrastructure and training to overcome the constraints in cost, time, and human resources capabilities. Research to investigate environmentally friendly activities carried out by MSMEs during a pandemic is still scant. This research is expected to fill this gap and provides practical as well as theoretical contributions in this area.