Environmental analysis and impact on green business strategy and performance in SMEs post the Covid-19 pandemic

PurposeThis study aims to obtain empirical evidence on the effect of environmental analysis on environmentally friendly business strategies and performance in SMEs after the Covid-19 Pandemic.MethodologyThe study included primary data sources such as environmental orientation, top management awareness, environmental performance, green business strategy, and SMEs performance. It involved 103 SMEs, of which 36 were in the food processing industry, 37 were in the leather processing industry, and 30 were involved in furniture manufacturing.FindingsIn this study, 103 SMEs were examined with a focus on performance, environmental performance, top management environmental awareness, green business strategy, and environmental orientation. These findings can support resource-based display theory and assist corporate management in making judgments regarding business plans. A positive mediation association between ecological performance and environmental orientation toward green company strategy through top management’s environmental awareness was also discovered in this study.Implications of researchA mediating relationship between environmental direction, green business strategy, and top management’s ecological awareness and performance orientation is revealed, which supports managers in their decision-making.Originality/valueThis study focuses on green business strategies, environmental performance, environmental performance awareness, and environmental orientation to improve the operations of Indonesian SMEs and address environmental challenges.The environment is an important part and factor that must be considered in the management of business activities. The business environment influences future business development from the external and internal environment. The external environment is a factor outside the company that can influence the organizational structure, direction, internal processes and company actions in its business activities. The relationship between the environment and business is so close that companies must be observant in predicting changes or recognizing environmental problems. Environmental management is an aspect that must be considered and improved in carrying out management functions to achieve company goals that are oriented toward environmental sustainability. It becomes a demand or obligation for a business to pay attention to sustainability and an orientation toward the environment. These efforts are used to anticipate or fulfil various demands from stakeholders regarding environmental protection or preservation.