Green Innovation Adoption in Indonesian SMEs

Kusuma, Gabriella Hanny Green Innovation Adoption in Indonesian SMEs. [Research]

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Abstract

Purpose – The research intended to explore the underlyig factors of Green innovation adoption on Indonesian SMEs. Design/methodology/approach –This study used qualitative approach with multiple case studies. In-depth interview conducted to 10 SMEs owner who are already implementing green innovation. Triangulation technique and member checking use in this research to ensure validity. The data were analyzed using content analysis method. Findings – This research identified the underlying factors of green innovation adoption decision. The factors are: 1) Religious Values, 2) Personnal interest of the company’s owner, 3) Family tradition, 4) Self – awareness (environment sustainability and healthy living), 5) Market, 6) Regulation Research Limitation / implication – This research explore the underlying factors of green innovation in SMEs without considering to what degree green innovation has been implemented in the participants company. In the future, the research can specify the exploration of the green innovation in the SMEs based on the four categories: green managerial innovation, green product innovation, green process innovation, and green technological innovation. The future research also can use quantitative method to define the most significant factor which influence the green innovation decision. Originality/value – This paper shows the underlying factors that encourage SMEs in Indonesia adopted green innovation.

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