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Original Research

GREEN INNOVATION STRATEGY TO ENHANCE COMPETITIVENESS AND PERFORMANCE OF SMEs IN SOUTH SULAWESI

MUHAMMAD TOAHA 1, ABD. RAHMAN KADIR 2, MUSRAN MUNIZU 3, and MAAT PONO 4.

Vol 18, No 12 ( 2023 )   |  Author Affiliation: Faculty of Economics and Business, Hasanuddin University, Indonesia 1,2,3,4.   |   Licensing: CC 4.0   |   Pg no: 254-271   |   Published on: 07-12-2023

Abstract

This research points to analyze the effect of green innovation strategy on competitiveness, the impact of green innovation strategy on performance, the impact of competitiveness on performance, and the impact of green innovation strategy on performance through the mediating role of competitiveness in SMEs in South Sulawesi. The analysis methods used were: (1) Descriptive Analysis, (2) Structural Equation Modelling (SEM). The results showed that green innovation strategy has a positive and significant impact on business competitiveness. Green innovation strategy has a positive but not significant impact on business performance. Competitiveness has a positive and significant impact on business performance. In addition, green innovation strategy has a positive and significant impact on the performance of SMEs in South Sulawesi mediated by competitiveness. The mediating role of competitiveness variable is included in the category of "full mediation". Therefore, business performance is indirectly influenced positively and significantly by green innovation strategy.


Keywords

Green Innovation Strategy; Competitiveness; SMEs Performance.