THE INFLUENCE OF GREEN ENTREPRENEURSHIP ORIENTATION, GREEN INNOVATION CAPABILITY, GREEN PRODUCT DEVELOPMENT ON SME FINANCIAL PERFORMANCE
Keywords:
green entrepreneurship orientation model, green innovation capability, green product development, financial performance, SMEsAbstract
The main objective of this study is to explore green entrepreneurship orientation and green product development with the support of green innovation capability triggered by the activeness of growing green knowledge creation can improve marketing performance in small and medium enterprises (SMEs) in Indonesia. The results of this study indicate that the growth of green entrepreneurship orientation as a challenge and opportunity for SMEs so as to produce green product development capabilities; creative green product development that is in accordance with consumer desires needs to be supported by good green innovation capability; The growth of green innovation capability cannot be separated from green knowledge creation efforts in SMEs; The resulting green product development directly affects marketing performance, but not so with green innovation capability cannot directly improve marketing performance but must go through green product development. SMEs as the driving force of the economy are still in their basic format as a form of innovative, proactive, and risk-taking business, must always produce innovative products and services to achieve sustainable performance. Green product development has proven to be quite effective in improving marketing performance, but it must be based on a strong green entrepreneurship orientation and good green innovation capability so that the ability of SMEs in developing green products is truly good and in accordance with consumer concerns about environmental issues. In the context of this study, the ability to innovate green products must be supported by the ability of SMEs in strong green knowledge creation in their business environment.
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