The Role of Sustainability Orientation and Sustainable Environmental Performance in Improving Sustainable Economic Performance and Realizing the Green Batik Industry Nugroho Mardi Wibowo (a*), Yuyun Widiastuti (a), Karsam (b), Iin Pancawati (c)
a) Management Department, Universitas Wijaya Putra, Jalan Raya Benowo No. 1-3, Surabaya 60197, Indonesia
*nugrohomardi[at]uwp.ac.id
b) Film and Television Production Department, Universitas Dinamika, Jalan Raya Kedung Baruk No. 98, Surabaya 60298, Indonesia
c) Department of Trade and Industry, Jombang Regency, Jalan K.H. Wahid Hasyim No. 143, Jombang 61411, Indonesia
Abstract
The batik industry is starting to develop rapidly, and his contribution is improving the Indonesian economy. But on the other hand, the batik industry produces waste that can pollute the environment. This condition illustrates that most of the batik industry in Indonesia has not supported sustainable development. Batik SMEs do not realize the importance of sustainability orientation, while some consumers prefer environmentally friendly batik products. This study aims to analyze the effect of sustainability orientation on sustainable economic performance directly and indirectly through sustainable environmental performance. The location of this study is Batik SMEs in the city of Surabaya, as well as Tuban, Lamongan, Sidoarjo, and Jombang Regencies. With the purposive sampling technique, 32 Batik SMEs can be selected with 89 respondents. The data analysis technique used in this study is SEM-PLS. The results of data analysis found that sustainable environmental performance has a positive influence on sustainable economic performance. Sustainability orientation has a positive impact on sustainable environmental performance. Sustainability orientation has no direct influence on sustainable economic performance. Sustainability orientation indirectly influences sustainability economic performance through sustainable environmental performance. Increasing sustainability orientation can increase sustainable environmental and economic performance for realizing the green batik industry
