Determining Factors for the Success of Green Innovation: Technology, Organizational, and Environmental Readiness On the Performance of MSMEs in Solo Raya

Abstract

This study examines how prepared MSMEs are for green innovation based on technological, organizational, and environmental frameworks. This study is quantitative. This study involved 156 owners and managers of micro, small, and medium enterprises (MSMEs) in Solo Raya to investigate the influence of technological, organizational, and environmental readiness on company performance.This study used a survey by distributing questionnaires to MSME owners/managers in the Solo Raya area.Partial Least Squares (PLS) method was used together with Smart-PLS software version 3 to analyze the collected data to evaluate the relationship between technology, organization, environment, and financial performance. The results showed that green innovation is significantly influenced by technology compatibility, environmental concern, and government support. In addition, green innovation is also significantly influenced by financial performance. This study also found several limitations, such as the possibility of potential less generalizable to other areas because the study was conducted only on MSMEs in Solo Raya. Despite these limitations, this study makes an important contribution to the understanding of how technological, organizational, and environmental readiness can affect performance in MSMEs.