Integrating circular economy, digital economy, and social protection policies to drive green business innovation: Insights from Indonesia’s culinary SMEs
Global concern over environmental pollution has sparked the adoption of green business practices, which are essential for the sustainability of SMEs through green economy initiatives and renewable resources. This study aims to analyze the integration of circular and digital economy policies along wi...
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LLC "CPC "Business Perspectives"
2024-11-01
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| Series: | Problems and Perspectives in Management |
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| author | Suci Megawati Herdis Herdiansyah Amir Machmud Ernoiz Antriyandarti Sud Sudirman |
| author_facet | Suci Megawati Herdis Herdiansyah Amir Machmud Ernoiz Antriyandarti Sud Sudirman |
| author_sort | Suci Megawati |
| collection | DOAJ |
| description | Global concern over environmental pollution has sparked the adoption of green business practices, which are essential for the sustainability of SMEs through green economy initiatives and renewable resources. This study aims to analyze the integration of circular and digital economy policies along with social protection policies in supporting green business innovation among culinary SMEs. By emphasizing the significance of government roles and innovation capabilities, the paper proposes that policies promoting environmentally friendly practices and social security can enhance sustainable performance in alignment with SDG principles. The study employs a quantitative approach, surveying 200 culinary SMEs in Surabaya City in Indonesia, a city known for its vibrant SME sector and commitment to sustainable practices. The data analysis, conducted using PLS-SEM through SmartPLS 4, reveals that circular economy policies (t-test = 6.503; p-value = 0.000) and social security (t-test = 3.848; p-value = 0.000) significantly enhance green business innovation, while digital economy policies are not significant (t-test = 0.725; p-value = 0.468). Furthermore, green business innovation positively impacts sustainable performance (t-test = 24.418; p-value = 0.000). However, internal innovation capabilities do not moderate the relationship between integrative policies and green business innovation. The findings indicate that government policies significantly influence green business innovation in MSMEs, particularly through circular economy regulations. Regulatory support and incentives are crucial for driving environmental sustainability and enhancing competitiveness. Strengthening digital economy policies through improved technology access and digital literacy will further support green innovation, while investments in internal innovation and human resources are vital for sustainable growth.
AcknowledgmentThis study is funded by the Riset Kolaborasi Indonesia (Grant No. B/43869/UN38.III.1/LK.04.00/2024) by LPPM Universitas Negeri Surabaya. |
| format | Article |
| id | doaj-art-6b17bc01d326492eb2c33cfa6985b013 |
| institution | Kabale University |
| issn | 1727-7051 1810-5467 |
| language | English |
| publishDate | 2024-11-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Problems and Perspectives in Management |
| spelling | doaj-art-6b17bc01d326492eb2c33cfa6985b0132025-08-20T03:49:08ZengLLC "CPC "Business Perspectives"Problems and Perspectives in Management1727-70511810-54672024-11-0122436838110.21511/ppm.22(4).2024.2821097Integrating circular economy, digital economy, and social protection policies to drive green business innovation: Insights from Indonesia’s culinary SMEsSuci Megawati0https://orcid.org/0000-0002-1798-6879Herdis Herdiansyah1https://orcid.org/0000-0003-2684-3551Amir Machmud2https://orcid.org/0000-0003-1567-3841Ernoiz Antriyandarti3https://orcid.org/0000-0002-0948-4000Sud Sudirman4https://orcid.org/0000-0003-4083-0810Dr., Assistant Professor, Department of Public Administration, Faculty of Social Science and Political Science, State University of Surabaya, IndonesiaDr., Associate Professor, School of Environmental Science, University of Indonesia, IndonesiaDr., Full Professor, Economics Education Department, Faculty of Economics and Business Education, Indonesian Education University, IndonesiaAssociate Professor, Department of Agribusiness, Faculty of Agriculture, Universitas Sebelas Maret [Sebelas Maret University], IndonesiaAssistant Professor, School of Computer Science and Mathematics, Liverpool John Moores University, United KingdomGlobal concern over environmental pollution has sparked the adoption of green business practices, which are essential for the sustainability of SMEs through green economy initiatives and renewable resources. This study aims to analyze the integration of circular and digital economy policies along with social protection policies in supporting green business innovation among culinary SMEs. By emphasizing the significance of government roles and innovation capabilities, the paper proposes that policies promoting environmentally friendly practices and social security can enhance sustainable performance in alignment with SDG principles. The study employs a quantitative approach, surveying 200 culinary SMEs in Surabaya City in Indonesia, a city known for its vibrant SME sector and commitment to sustainable practices. The data analysis, conducted using PLS-SEM through SmartPLS 4, reveals that circular economy policies (t-test = 6.503; p-value = 0.000) and social security (t-test = 3.848; p-value = 0.000) significantly enhance green business innovation, while digital economy policies are not significant (t-test = 0.725; p-value = 0.468). Furthermore, green business innovation positively impacts sustainable performance (t-test = 24.418; p-value = 0.000). However, internal innovation capabilities do not moderate the relationship between integrative policies and green business innovation. The findings indicate that government policies significantly influence green business innovation in MSMEs, particularly through circular economy regulations. Regulatory support and incentives are crucial for driving environmental sustainability and enhancing competitiveness. Strengthening digital economy policies through improved technology access and digital literacy will further support green innovation, while investments in internal innovation and human resources are vital for sustainable growth. AcknowledgmentThis study is funded by the Riset Kolaborasi Indonesia (Grant No. B/43869/UN38.III.1/LK.04.00/2024) by LPPM Universitas Negeri Surabaya.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/21097/PPM_2024_04_Megawati.pdfcircularitycompetitivenessdigitalizationinnovationpolicySMEs |
| spellingShingle | Suci Megawati Herdis Herdiansyah Amir Machmud Ernoiz Antriyandarti Sud Sudirman Integrating circular economy, digital economy, and social protection policies to drive green business innovation: Insights from Indonesia’s culinary SMEs Problems and Perspectives in Management circularity competitiveness digitalization innovation policy SMEs |
| title | Integrating circular economy, digital economy, and social protection policies to drive green business innovation: Insights from Indonesia’s culinary SMEs |
| title_full | Integrating circular economy, digital economy, and social protection policies to drive green business innovation: Insights from Indonesia’s culinary SMEs |
| title_fullStr | Integrating circular economy, digital economy, and social protection policies to drive green business innovation: Insights from Indonesia’s culinary SMEs |
| title_full_unstemmed | Integrating circular economy, digital economy, and social protection policies to drive green business innovation: Insights from Indonesia’s culinary SMEs |
| title_short | Integrating circular economy, digital economy, and social protection policies to drive green business innovation: Insights from Indonesia’s culinary SMEs |
| title_sort | integrating circular economy digital economy and social protection policies to drive green business innovation insights from indonesia s culinary smes |
| topic | circularity competitiveness digitalization innovation policy SMEs |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/21097/PPM_2024_04_Megawati.pdf |
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