GREEN MSMEs: BUSINESS TRANSFORMATION THROUGH THE CONCEPTS OF ECO-ADOPTER, ECO-ENTREPRENEUR, AND ECO-INNOVATOR ON MSME SUSTAINABILITY

Wiwiek Kusumaning Asmoro; Novie Astuti Setianingsih; Eti Putranti; Atik Tri Andari; Hanifah Puspita Sari; Fitria Nur Hamidah

doi:10.61677/count.v4i2.1105

Authors

Wiwiek Kusumaning Asmoro Accounting Department, Politeknik Negeri Malang
Novie Astuti Setianingsih Accounting Department, Politeknik Negeri Malang
Eti Putranti Accounting Department, Politeknik Negeri Malang
Atik Tri Andari Accounting Department, Politeknik Negeri Malang
Hanifah Puspita Sari Accounting Department, Politeknik Negeri Malang
Fitria Nur Hamidah Accounting Department, Politeknik Negeri Malang

DOI:

https://doi.org/10.61677/count.v4i2.1105

Keywords:

Green MSMEs, eco-adopter, eco-entrepreneur, eco-innovator, MSME sustainability.

Abstract

A green future calls for joint action, using the Green MSMEs concept as a means to build a healthy, sustainable environment that lives in harmony with nature. The study aimed to assess how the concepts of eco-adopter, eco-entrepreneur, and eco-innovator shape MSME sustainability. Using a probability sampling technique combined with simple random sampling, primary data were collected via a questionnaire. With a population of 75 MSME actors in Kediri City’s Tofu Producer Processing sector, the Slovin formula was used to calculate the sample, resulting in 43 MSME respondents from Kediri City. Data were drawn from questionnaires circulated to owners of MSMEs in the Tofu Producer Processing sector registered at the Kediri City Cooperative and SME Trade Office, and analysis was performed with Spearman Rank correlation, Kendall’s W, and ordinal regression using SPSS. The findings show that the Eco-Adopter, Eco-Entrepreneur, and Eco-Innovator concepts have a significant effect on MSME sustainability. However, most MSMEs are currently still at the Eco-Adopter stage or only apply basic eco-friendly principles and Pre-Eco-Adopter. This shows a large implementation gap to reach the level of Eco-Entrepreneur and Eco-Innovator which has a deeper and structural sustainability impact. Therefore, the transition of MSMEs to the Eco-Innovator stage requires strong ecosystem support. Factors such as access to Green Financing (especially commercial financing for Eco-Innovators), specific Government Regulations and Incentives for green MSMEs, as well as the adoption of Digital Technologies that facilitate green innovation, are key determinants of the success of the transformation.

References

Achmad, G. N., Yudaruddin, R., Budiman, P. W., Nor Santi, E., Suharsono, S., Purnomo, A. H., & Wahyuningsih, N. (2023). Eco-Innovation and SME Performance in Time of Covid-19 Pandemic: Moderating Role of Environmental Collaboration. Emerging Science Journal, 7, 251–263. https://doi.org/10.28991/ESJ-2023-SPER-018

Achmad, G. N., Yudaruddin, R., Nugroho, B. A., Fitrian, Z., Suharsono, S., Adi, A. S., Hafsari, P., & Fitriansyah, F. (2023). Government support, eco-regulation and eco-innovation adoption in SMEs: The mediating role of eco-environmental. Journal of Open Innovation: Technology, Market, and Complexity, 9(4), 1–12. https://doi.org/10.1016/j.joitmc.2023.100158

Adi, J. M., Zailani, A., & Wijiastuti, S. (2021). Analisis Tingkat Literasi Keuangan (Pengetahuan Keuangan, Sikap Keuangan, Dan Kesadaran Keuangan) Terhadap Kinerja Usaha Kecil (Studi Kasus Di Kalurahan Sumberejo Kecamatan Jatisrono Kabupaten Wonogiri). Jurnal Widya Ganecwara, 11(1), 1–10. https://doi.org/10.36728/JWG.V11I1.1405

Alraja, M. N., Imran, R., Khashab, B. M., & Shah, M. (2022). Technological innovation, sustainable green practices and SMEs sustainable performance in times of crisis (COVID-19 pandemic). Information Systems Frontiers, 24(4), 1081–1105. https://doi.org/10.1007/s10796-022-10250-z

Angeline, M., & Andrian, T. (2025). The Indonesian MSME compass: Navigating sustainable performance with innovation, dynamic capabilities, and green entrepreneurial mindset. International Journal of Economics and Financial Issues, 15(6), 738–747. https://doi.org/10.32479/ijefi.21728

Ardhiyansyah, A., & Juniansyah, M. A. (2024). Have MSMEs in Indonesia focused on business sustainability? The influence of environmental orientation, technology implementation, green marketing, and innovation capability. Jurnal Riset Ekonomi Manajemen (REKOMEN), 7(2), 369–394. https://doi.org/10.31002/rekomen.v7i2.1679

Astuti, M., Prawoto, P., Irawan, Y. S., & Sugiono, S. (2018). The eco-innovation variables which influence the performance of creative industries center of natural stone crafts. Journal of Ecological Engineering, 19(1), 14–24. https://doi.org/10.12911/22998993/79446

Aulia, N. I., & Indrasti, N. S. (2023). Penerapan Produksi Bersih Pada Industri Kecil Menengah (IKM) Pengolahan Tahu di Indonesia: Literatur Review. Journal of Agroindustrial Technology/Jurnal Teknologi Industri Pertanian, 33(1), 10–19. https://doi.org/10.24961/j.tek.ind.pert.2023.33.1.10

Azzahra, I., & Firdaus, R. (2024). Penerapan Sistem Informasi Manajemen dalam Meningkatkan Efisiensi Perusahaan. Jurnal Manuhara : Pusat Penelitian Ilmu Manajemen Dan Bisnis, 2(3), 239–242. https://doi.org/10.61132/manuhara.v2i3.1040

Bank Indonesia. (2026). Buku Pedoman Implementasi Model Bisnis UMKM Berkelanjutan: Aksi Mitigasi. Bank Indonesia.

Coelho, A., Ferreira, J., & Proença, C. (2023). The impact of green entrepreneurial orientation on sustainability performance through the effects of green product and process innovation: The moderating role of ambidexterity. Business Strategy and the Environment, 33(4), 3184–3202. https://doi.org/10.1002/bse.3648

Fauziah, F. A. R., Hasibuan, L., Salsabila, A., & Indah, A. N. (2025). UMKM Hijau Dan Berdaya Saing: Optimalisasi Transformasi Digital Sebagai Upaya Inovasi Berkelanjutan. Jurnal E-Bis, 9(1), 1–21. https://doi.org/10.37339/e-bis.v9i1.2303

Hermawan, D. J., Sudarmiatin, S., Handayati, P., & Suharsono, N. (2025). Driving Sustainable Performance: The Role Of Green Entrepreneurial Orientation And Innovation Capability Among SMES. Profit: Jurnal Kajian Ekonomi Dan Perbankan Syariah, 9(2), 716–727. https://doi.org/10.33650/profit.v9i2.13586

Idawati, I. A. A., & Pratama, I. G. S. (2020). Pengaruh Literasi Keuangan Terhadap Kinerja dan Keberlangsungan UMKM di Kota Denpasar. Warmadewa Management and Business Journal (WMBJ), 2(1), 1–9. https://doi.org/10.22225/wmbj.2.1.1644.1-9

Indrawati, H., Caska, C., Hermita, N., Sumarno, S., & Syahza, A. (2025). Green innovation adoption of SMEs in Indonesia: what factors determine it? International Journal of Innovation Science, 17(1), 19–37. https://doi.org/10.1108/IJIS-02-2023-0047

Khairuman, E., Safrilana, Y., Khoiruddin, F., Sulaeman, S. D., & Ansori. (2023). Penerapan Proses Produksi Ramah Lingkungan Pada Industri Pertahanan dalam Mendukung Kemandirian Alpalhankam. G-Tech: Jurnal Teknologi Terapan, 7(3), 949–957. https://doi.org/10.33379/gtech.v7i3.2614

Koirala, S. (2019). SMEs: Key drivers of green and inclusive growth. OECD Green Growth Papers, 2019/03.

Lestari, E. R., & Sunyoto, N. M. S. (2023). Fostering green innovation in achieving sustainable performance. Natural Resources Forum, 47(3), 413–434. https://doi.org/10.1111/1477-8947.12293

Marushevskyi, G., & Hickman, D. (2018). A Guide on “Green business” for small and medium-size enterprises. Federation of Canadian Municipalities (FCM).

Mentari, S., Sudarmiatin, S., & Rahayu, W. P. (2024). Exploring The Synergy of Green Innovation and Digital Transformation for Enhancing SME Performance: A Systematic Literature Review. Jurnal Ekonomi Kreatif dan Manajemen Bisnis Digital, 3(2), 117–136. https://doi.org/10.55047/jekombital.v3i2.809

Munawar, F., Kaniawati, K., Handayani, R., Sukma, A., Yudanegara, A., & SP, S. W. (2024). Eco-innovation adoption in emerging markets: Analyzing managerial and environmental factors in Indonesian SMEs. Journal of Enterprise and Development (JED), 6(2), 514–526. https://doi.org/10.20414/jed.v6i2.11124

Nafisah, J., & Shiratina, A. (2026). The Influence of Green Marketing and Digital Marketing on the Competitiveness of MSMEs Tempeh Chips in Malang City with Brand Image as a Mediating Variable. International Journal of Environmental, Sustainability, and Social Science (IJESSS), 7(5), 1395–1409. https://doi.org/10.38142/ijesss.v5i5.1206

Narto, N., Radianto, W. E. D., & Wahjudono, D. B. K. (2025). The ability of green entrepreneurial orientation and supply chain management to impact the sustainability performance of smes in the gresik district. Jurnal Ekonomi Bisnis Dan Kewirausahaan, 14(1), 61–89. https://doi.org/10.26418/jebik.v14i1.83431

Nohong, M., Sobarsyah, M., Alamzah, N., Sylvana, A., & Herman, B. (2024). Green financial management and its impact on small medium enterprises (SMEs): An empirical study in Indonesia. Journal of Environmental Assessment Policy and Management, 26(01), 2450001. https://doi.org/10.1142/S1464333224500017

Primandaru, N., Kusuma, M. W., & Nasution, O. B. (2023). Antecedents of green manufacturing implementation by local MSMEs in Indonesia. Environmental Economics, 14(2), 103–113. https://doi.org/10.21511/ee.14(2).2023.08

Purwandani, J. A., & Michaud, G. (2021). What are the drivers and barriers for green business practice adoption for SMEs? Environment Systems and Decisions, 41(4), 577–593. https://doi.org/10.1007/s10669-021-09821-3

Reniati, S. E., & Faisal, S. H. (2023). Green SME Business Model in Bangka Belitung: A Value Chain Analysis Approach. Journal of International Conference Proceedings (JICP), 6(4), 82–97. https://doi.org/10.32535/jicp.v6i4.2574

Rosani, N. R., & Lukiastuti, F. (2022). Pengaruh Pengelolaan Risiko dan Perilaku Inovatif terhadap Keberlangsungan Usaha UMKM yang Dimoderasi oleh Kapabilitas Jejaring. EconBank, 4(2), 199–220. https://doi.org/10.35829/econbank.v4i2.246

Rumini, D. A., & Martadiani, M. (2020). Peran Literasi Keuangan Sebagai Prediktor Kinerja Dan Keberlanjutan Umkm Di Kabupaten Badung. Inventory: Jurnal Akuntansi, 4(1), 53–62. https://doi.org/10.25273/inventory.v4i1.6300

Setyaningsih, S., & Arrahman, D. R. (2025). The Role of Green Innovation in Strengthening Green Economy Towards Sustainability Performance: MSMEs in Jumantono District, Karanganyar. Journal Of Management, Accounting, General Finance And International Economic Issues, 4(3), 563–577. https://doi.org/10.55047/marginal.v4i3.1712

Siregar, D. H., & Pinagara, F. A. (2022). Analysis of the relationship between practices and performance of green supply chain management in Indonesian micro, small, and medium enterprises (MSMEs). The South East Asian Journal of Management, 16(2), 118–138. https://doi.org/10.21002/seam.v16i2.1169

Štěrbová, M., Výbošťok, J., & Šálka, J. (2021). A classification of eco-innovators: Insights from the Slovak forestry service sector. Forest Policy and Economics, 123(Februari 2021), 1–10. https://doi.org/10.1016/j.forpol.2020.102356

Sugiyono. (2021). Metode Penelitian Kuantitaif, Kualitatif, R&D. Alfabeta.

Sulaeman, A., & Kurniawati, S. S. (2023). The effect of sustainable commitment and sustainable competencies on business sustainability. Jurnal Economia, 19(2), 206–220. https://doi.org/10.21831/economia.v19i2.57895

Sumarno, Badriyah, S., & Hartomo, D. D. (2015). Green Product: Upaya Menjaga Keberlanjutan Lingkungan Dan Peluang Pengembangan Produk Pasar Ekspor Bagi UMKM BT - Prosiding Seminar Nasional 4th UNS SME’s Summit & Awards 2015 “Sinergitas Pengembangan UMKM Dalam Era Masyarakat Ekonomi ASEAN (MEA).” 4th UNS SME’s Summit & Awards 2015, 58–66.

Sumastuti, E., Harahap, S., & Sianipar, G. (2024). Exploring the impact of green finance, financial literacy, and social capital on the performance and financial sustainability of Indonesian MSMEs. Journal of Economic, Bussines and Accounting (COSTING), 7(4), 10869–10886. https://doi.org/10.31539/costing.v7i4.9719

Syahputra, E., Sudarmiatin, S., & Sumelvia Dewi, A. (2024). Efforts To Increase Consumer Trust Through Green Marketing On White Oyster Mushroom Chips MSMEs In Kediri. Transekonomika: Akuntansi, Bisnis dan Keuangan, 4(3), 198–206. https://doi.org/10.55047/transekonomika.v4i3.630

Tjahjadi, B., Soewarno, N., Hariyati, H., Nafidah, L. N., Kustiningsih, N., & Nadyaningrum, V. (2020). The Role of Green Innovation between Green Market Orientation and Business Performance: Its Implication for Open Innovation. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 1–18. https://doi.org/10.3390/joitmc6040173

Valdiansyah, R. H., & Widiyati, D. (2024). Peranan Sustainable Finance Pada Industri UMKM Indonesia: Peluang dan Tantangan. Journal of Law, Administration, and Social Science, 4(1), 47–55. https://doi.org/10.54957/jolas.v4i1.713

Yanti, W., Syamsul, & Zuhroh, S. (2022). Pengaruh Inklusi Keuangan dan Literasi Keuangan terhadap Keberlangsungan Usaha Kuliner di Kecamatan Palu Barat. Jurnal Kolaboratif Sains, 5(8), 515–525. https://doi.org/10.56338/jks.v5i8.2700

Yulistika, E., Suprihatin, S., & Purwoko, P. (2023). Potensi penerapan konsep ekonomi sirkular untuk pengembangan industri tahu yang berkelanjutan. Jurnal Teknologi Industri Pertanian, 33(3), 254–266. https://doi.org/10.24961/j.tek.ind.pert.2023.33.3.254

Yuningsih, E., & Yulianingsih, Y. (2022). Implementasi Inovasi dan Pemasaran Hijau Dalam Meningkatkan Daya Saing UKM. Inovator, 11(2), 440–449. https://doi.org/10.32832/inovator.v11i3.7902

Yusfiarto, R. (2023). Transition strategies of green MSMEs: A sequential explanatory design mix method analysis. East Java Economic Journal, 7(2), 248–268. https://doi.org/10.53572/ejavec.v7i2.113