Environmental performance as a mediating variable relationship between green process innovation and eco-efficiency on corporate sustainability of smes in South Sumatera

Siti Khairani, Idham Cholid

Abstract


This paper present determentation of environmental performance as a mediating variable of the relationship between green process innovation and eco-efficiency on the corporate sustainability in small and medium enterprise (SME) in South Sumatra. This study using partial least square structural equation technique in making data analysis. The respondents in this study were the managers and owners of manufacturing small and medium-sized businesses. There were 70 SMEs as research samples. The results showed that green process innovation and eco-efficiency directly had a positive and significant effect on environmental performance, but green process innovation had no impact on corporate sustainability. Eco-efficiency also does not affect corporate sustainability. Meanwhile, the environmental performance has a positive and significant effect on corporate sustainability. For indirect testing, complete mediation environmental performance can influence the relationship between green process innovation and eco-efficiency on corporate sustainability. Therefore, this study suggests that SMEs managers and owners in South Sumatra can continue carrying out green practices to become SME with competitiveness and business sustainability.

 


Keywords


Green process innovation; eco-efficiency; corporate sustainability; environmental performance

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References


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DOI: https://doi.org/10.30872/jinv.v18i0.11261

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