Abstract
This research intended to evaluate the effects of innovation orientation (INO), customer orientation (CSO), supplier orientation (SPO), network orientation (NWO), and absorptive capacity (ABC) on economic and environmental sustainability among the Batik small and medium enterprises (SMEs) in Malaysia. This study adopted a cross-sectional design and collected quantitative data using self-reported adopted scales from 213 randomly selected Batik SMEs from Kelantan and Terengganu, Malaysia. The results revealed that INO, CSO, and ABC had a positive and significant effect on the economic sustainability (ECS) of the Batik SMEs in Malaysia. The effects of SPO and NWO on ECS were positive but not statistically significant. It was found that ECS significantly and positively affected the environmental sustainability (ENS) of the Batik SMEs in Malaysia. Besides that, ECS mediated the effects of CSO and ABC on the ENS of the Batik SMEs in Malaysia. Furthermore, important performance matrix analysis revealed that the most important factors for ENS were Batik SMEs’ ECS, absorptive capacity, and INO. For the performance of ENS, the most important factors were CSO, SPO, and NWO. The Batik SMEs and entrepreneurial development programs and policies should focus on innovation and CSO as well as improving ABC to sustain in today’s competitive business environment.
Highlights
This study empirically evaluated the Batik small and medium enterprises (SMEs)’s economic sustainability (ECS) through innovation orientation (INO), customer orientation (CSO), supplier orientation (SPO), and absorptive capacity (ABC)
Economic sustainability mediates the relationship between innovation orientation, customer orientation, supplier orientation, network orientation, and absorptive capacity with the environmental sustainability of Batik SMEs
The findings suggested that the Batik SMEs’ INO, CSO, and ABC were important contributors to the achievement of SMEs’ ECS
Summary
Sustainability goal achievement is the most common goal as humans are responsible for the degradation of the environment as a result of industrial development in the 20th century [5]. Sustainable business practices should develop to achieve sustainability at the economic, social, and environmental levels [1]. It is believed that the effective way to reduce the negative impact of economic development on the environment is the mutual responsibility of large and small firms [2]. Firms should develop strategic links with the stakeholder and sustain business success while being concerned with the environment in general [6,8]. The section covers the literature review of INO, CSO, SPO, NWO, absorptive capacity, ECS, and ENS concerning SMEs. the section describes the method of conducting this study based on the literature review and hypotheses development.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
