The Role of Internal Drivers Toward Eco-Innovation Adoption and Its Consequences on Sustainable Performance in the Small Manufacturing Firms

Authors

  • Fansuri Munawar* , Didi Tarmidi

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.

Published

2020-10-16

Issue

Section

Articles