The Role of Mediation Series in Green Innovation and Digital Transformation on the Green Entrepreneurial Orientation to Create Competitive Advantage. Hastutie Noor Andriati (a), Dian Agustia (b*)
a) Department of Accounting, Faculty of Economics and Business, Airlangga University, Surabaya, Indonesia and Department of Accounting, Faculty of Economics and Business, Cenderawasih University, Jayapura Papua, Indonesia
b)Department of Accounting, Faculty of Economics and Business, Airlangga University, Surabaya, Indonesia
Abstract
The study aims to discover the role of the mediation series green innovation and digital transformation, specifically focusing on green entrepreneurial orientation in Indonesian Small and Medium Enterprises to create a competitive advantage and support sustainability goal.
This study is designed as quantitative research. The data is collected by distributing a scale Likert 1 until 5 questionnaire. The data is obtained from Indonesian Small and Medium Enterprises. There have been 221 collected samples of companies for the study. The hypotheses are reviewed by utilizing the PLS-SEM application, and a serial mediation model is developed to investigate the role of green innovation and digital transformation.
Some findings are as follows, first, Green entrepreneurial orientation significantly affects competitive advantage, its mean entrepreneurs who have green entrepreneurial orientation will be more proactive towards green business by utilizing new ideas and encouraging innovation, thereby driving digital transformation strategies towards an ecological social economy.
second, green innovation and digital transformation mediate the relationship between green entrepreneurial orientation and competitive advantage. Green innovation motivates small and medium sized enterprises (SMEs) to implement digital technology, aiming to develop more environmentally friendly products and processes, address sustainability issues (social, economic, and environmental), and enhance their competitive advantage.
The following are the limitations covered in the study, fist, the study samples have different turnovers, therefore, the application of digital transformation is potentially different for each small and medium enterprise. Second, a low-rate response was obtained.
Practical implications for this study is small and medium enterprises need to develop a green entrepreneurial orientation as a foundation for adopting green innovation and digital transformation simultaneously, as both are mutually reinforcing in increasing competitiveness. This can be done by building a culture and strategy that focuses on environmental concerns.
This study is the first study investigating the role of mediation series in green innovation and digital transformation in Indonesia Small and Medium Enterprises.
Keywords: Green entrepreneurial, Green innovation, Digital transformation, Enterprises competitive advantage, Small and medium enterprises.
Topic: Entrepreneurship and small medium entreprises
