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Catalysing Sustainability: Exploring Factors Shaping Green Initiatives in Micro, Small, and Medium-Sized Enterprises

Author

Listed:
  • Lukman Hamdani

    (Department of Master Management, School of Postgraduate Studies, YARSI University, Jakarta, Indonesia)

  • Hesty Juni Tambuati Subing

    (��Department of Accounting, Faculty of Economics and Business, YARSI University, Jakarta, Indonesia)

  • Rizaldi Yusfiarto

    (��Department of Sharia Finance Management, Faculty of Islamic Economics and Business, Universitas Islam Negeri Sunan Kalijaga Yogyakarta, Sleman, Indonesia)

Abstract

By applying the PLS-SEM method to survey the data of 350 samples in Indonesia, this paper develops a framework based on three potential elements: push effect (partnership and cooperation, rules and regulations, value practices), pull effect (government support, market sophistication, environmental awareness), and mooring effect (technological support and switching costs) about the transition of micro, small, and medium enterprises (MSMEs) towards green practices. The study reveals that these factors exhibit variations in terms of statistical significance. The findings indicate that an increase in the push effect and pull effect significantly influences the switching behaviour of MSME owners/managers. In contrast, concerning the mooring effect, each element demonstrates varying levels of direct influence on the transition towards green practices in MSMEs, with some impacts proving to be statistically significant and others not. Overall, these findings shed light on the intricate dynamics of MSMEs environmental responsibility, offering valuable insights for policymakers and practitioners.

Suggested Citation

  • Lukman Hamdani & Hesty Juni Tambuati Subing & Rizaldi Yusfiarto, 2024. "Catalysing Sustainability: Exploring Factors Shaping Green Initiatives in Micro, Small, and Medium-Sized Enterprises," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 26(02), pages 1-34, June.
    • Handle: RePEc:wsi:jeapmx:v:26:y:2024:i:02:n:s1464333224500042
    DOI: 10.1142/S1464333224500042
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