Green Entrepreneurship And Innovation As Drivers Of Green Business Performance

Abstract

The objective of this study is to examine the impact of green entrepreneurship and innovation on the enhancement of green business performance in micro, small, and medium-sized enterprises (MSMEs), with a particular focus on the tourism sector in Indonesia. In accordance with the tenets of the Resource-Based View (RBV), this paper delineates green capabilities as strategic
internal resources capable of engendering sustained competitive advantages. This research employed a mixed methods approach, integrating participatory action research with a cross-sectional survey. The survey encompassed 213 green-oriented MSMEs in Banyuwangi. The findings suggest that green entrepreneurship and innovation have a favorable effect on the economic, environmental, and social sustainability of firms. Empirically, this paper contributes to the extant body of knowledge on sustainability with a unique context of resource-constrained settings in Global South. The text emphasizes the potential for MSMEs to serve as key drivers for low-carbon development and ecoefficient economies at the regional and national scale. This study offers actionable implications for policymakers and SME intermediaries regarding the alignment of MSME development with the national (Indonesia) green economic roadmap and global climate pacts.