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Eco-Innovation: Analysis of Performance Improvement Through Sustainable Entrepreneurship Orientation in the Food Sector Based on MSME Agroindustry in Jember

In: Proceedings of the 4th International Conference on Economic, Business, and Accounting Studies (ICEBAST 2025)

Author

Listed:
  • Rizky Atika Salsabila Ivabianca Putri

    (Jember University)

  • Isti Fadah

    (Jember University)

  • Handriyono Handriyono

    (Jember University)

  • Almas Farah Dinna Dewi

    (Jember University)

  • Amalia Rizqi Ramdani

    (Jember University)

  • Ages Miftah Dayurimasani

    (Jember University)

Abstract

This study investigates the influence of Eco-Innovation, encompassing Eco-Product, Eco-Process, and Eco-Marketing Innovation, on the Sustainable Performance of Micro, Small, and Medium Enterprises (MSMEs) in the agro-industry food sector in Jember Regency, Indonesia. This model utilizes Sustainable Entrepreneurial Orientation (SEO) as a key mediator. Employing an explanatory quantitative design, data were collected from 167 MSMEs using random sampling and analyzed via the Structural Equation Modeling – Partial Least Square (SEM-PLS) method. The findings indicate that Eco-Process Innovation and Eco-Marketing Innovation significantly and positively affect Sustainable Performance directly. However, Eco-Product Innovation shows an insignificant direct influence. The structural model demonstrates good predictive relevance (Q2 = 0.873). SEO is confirmed to be a significant mediator for all three Eco-Innovation dimensions, acting as a full mediator for Eco-Product Innovation, thereby underscoring that the effective translation of green initiatives into performance requires a supportive entrepreneurial mindset. This research contributes theoretically by validating SEO’s role in bridging innovation and performance in the MSME context and offers practical guidance for stakeholders to focus on developing SEO to achieve sustainable competitive advantage in the Jember agro-industry.

Suggested Citation

  • Rizky Atika Salsabila Ivabianca Putri & Isti Fadah & Handriyono Handriyono & Almas Farah Dinna Dewi & Amalia Rizqi Ramdani & Ages Miftah Dayurimasani, 2025. "Eco-Innovation: Analysis of Performance Improvement Through Sustainable Entrepreneurship Orientation in the Food Sector Based on MSME Agroindustry in Jember," Advances in Economics, Business and Management Research, in: Novi Puspitasari & Zainuri Zainuri (ed.), Proceedings of the 4th International Conference on Economic, Business, and Accounting Studies (ICEBAST 2025), pages 240-253, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-956-8_19
    DOI: 10.2991/978-94-6463-956-8_19
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