THE ROLE OF INTERNAL DRIVERS TOWARD ECO-INNOVATION ADOPTION AND ITS CONSEQUENCES ON SUSTAINABLE PERFORMANCE IN THE SMALL MANUFACTURING FIRMS

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Date
2020
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Solid State Technology Volume: 63 Issue: 3
Abstract
This study aims to identify the role of internal drivers consisting of organizational capabilities, efficiency, and environmental managerial concern as factors that are thought to increase eco-innovation adoption and its impact on sustainable performance in small manufacturing firms. This study took a sample of manufacturing SMEs consisting of five main industrial categories, namely the textile industry, the handicraft industry, the shoe & bag industry, the food & beverage industry, and various industries. Sampling was conducted on 75 owners or managers of manufacturing SMEs in the Bandung and surrounding areas because the area is one of the centers for manufacturing SMEs in West Java Province. The data analysis in this study used a structural equation model based on partial least square (SEM-PLS). The test results of the research hypothesis show that internal drivers have a positive and significant effect on eco-innovation adoption, and eco-innovation adoption also has a positive and significant effect on sustainable performance. This study has implications for policymakers for small manufacturing firms in increasing eco-innovation adoption in developing countries. Furthermore, it is hoped that the company can reflect on the results of business research decision making and to improve its sustainability performance.
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Keywords
Internal Drivers, Eco-innovation Adoption, Sustainable Performance
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