Green business strategy : optimization of green products towards export opportunities of SMEs products

Abstract

Performance is essential for small and medium-sized enterprises (SMEs) to survive in the current competitive environment. Determining the relationship between green product distinctiveness, environmental orientation (EO), green business strategy (GBS), green product innovation (GPI), and financial performance (FP) was the objective of this study. The survey-based data was acquired from employees of Indonesian SMBs. This study employed a quantitative research methodology. The study's questionnaire was constructed using a 5-point Likert scale. In this study, the usable response rate was 69.88%. This study employed a structural equation modeling (SEM) strategy using PLS to analyze the study's data. A green business strategy, environmental focus, and product differentiation were found to have a positive and statistically significant effect on green innovation. Additionally, green innovation has a good impact on economic success. In addition, the results confirmed the mediating role of green product innovation. These findings will aid policymakers and academics in their future research endeavors.