Drivers of Green Business and Its Impact on Sustainable Performance ER. Lestari (a), NMS Sunyoto (a), R. Septifani (a), M. FFA Kurnia (a)
(a) Faculty of Agricultural Technology,
Department of Agro-Industrial Technology,
Universitas Brawijaya, Malang, Indonesia
corresponding author: endahlestari24[at]ub.ac.id
Abstract
Considering businesses^ responsibility for the current environmental crises, businesses are encouraged to implement practices that minimize their environmental impact. Focusing on green business concepts, it is important to understand how businesses operate. The green business presents opportunities and challenges for companies and paves the way for long-term sustainable growth. Businesses can go green by producing green products/services or be green by greening their own processes. It is a challenge for enterprises to access their business^s sustainability. Environmental concern is important of strategic sustainable development. This can be evaluated within the corporate social responsibility concept, which impacts business competitiveness. Data were collected from 53 food sector SMEs in Batu City, Indonesia. The data was analyzed using the structural equation modeling technique with the partial least squares approach (SEM-PLS). The finding accomodates support for the positive relationship of both environmental concern and corporate social responsibility on green business. Ultimately, the results confirm that sustainable performance positively affects green business. Based on the findings, we recommend how SMEs can accelerate sustainable businesses because it provides advantages and society benefits.
Keywords: Corporate social responsibility, environmental concern, green business, sustainable performance
Topic: Agro-industrial production system management and regulation
