The Impact of Green Product Innovation on the Business Performance of Retail MSMEs in Samarinda: The Mediating Role of Green Supply Chain Management

Muhammad Afrizal Fani; Istimaroh Istimaroh

doi:10.55681/economina.v5i9.4020

Authors

Muhammad Afrizal Fani Universitas Muhammadiyah Kalimantan Timur, Indonesia
Istimaroh Universitas Muhammadiyah Kalimantan Timur, Indonesia

DOI:

https://doi.org/10.55681/economina.v5i9.4020

Keywords:

Business Performance, Green Product Innovation, Green Supply Chain Management, UMKM Ritel

Abstract

This study is motivated by the importance of improving the business performance of retail MSMEs in Samarinda through sustainability-oriented business strategies. Green Product Innovation (GPI) refers to MSMEs' efforts to develop more environmentally friendly products, while Green Supply Chain Management (GSCM) supports supply chain activities that consider environmental aspects. This study aims to analyze the effect of GPI on business performance, the effect of GPI on GSCM, the effect of GSCM on business performance, and the mediating role of GSCM in the relationship between GPI and business performance. This research employed a quantitative explanatory approach using a survey method by distributing questionnaires to 384 retail MSME actors in Samarinda, determined using the Krejcie and Morgan table. Data were analyzed using SPSS for descriptive statistics and SmartPLS with the SEM-PLS approach. The results show that GPI has a positive and significant effect on business performance (coefficient 0.235; p=0.000), GPI has a positive and significant effect on GSCM (coefficient 0.461; p=0.000), and GSCM has a positive and significant effect on business performance (coefficient 0.617; p=0.000). In addition, GSCM is proven to partially mediate the effect of GPI on business performance (indirect coefficient 0.285; p=0.000). These findings confirm that green product innovation can improve retail MSME business performance both directly and through strengthening green supply chain management.

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