The Role of Sustainability Orientation and Sustainable Environmental Performance in Improving Sustainable Economic Performance of the Batik Industry
Abstract
The batik industry is starting to develop rapidly, and its contribution is improving the Indonesian economy. On the other hand, the batik industry produces waste that pollutes the environment. Batik SMEs do not realize the importance of sustainability orientation, and that some consumers prefer environmentally friendly batik products. The purpose of this study was to examine the relationship between sustainability orientation and sustainable economic performance, both directly and through sustainable environmental performance. The study was conducted in Surabaya, as well as the Regencies of Tuban, Lamongan, Sidoarjo, and Jombang. With the purposive sampling technique, 32 Batik SMEs were selected with 89 respondents. SEM-PLS was the method of data analysis used in this investigation. According to data analysis findings, sustainable economic performance benefits from sustainable environmental performance. Sustainable environmental performance is positively impacted by sustainability orientation. Sustainable economic performance is not directly impacted by sustainability orientation. Sustainability orientation indirectly influences sustainability economic performance through sustainable environmental performance. Increasing sustainability orientation can increase sustainable environmental and economic performance for realising the green batik industry.
Keywords: sustainable development, sustainability orientation, sustainable economic performance, green batik industry
References
[1] Suliyanto W, Novandari, Setyawati SM. Persepsi Generasi Muda Terhadap Profesi Pengrajin Batik Tulis di Purbalingga. J. Ekon. dan Bisnis. 2015;18(1):135-144.
[2] Zammi M, Rahmawati A, Nirwana RR. Analisis Dampak Limbah Buangan Limbah Pabrik Batik di Sungai Simbangkulon Kab. Pekalongan. Walisongo J. Chem. 2018;1(1):1.
[3] Raharjo K. The role of green management in creating sustainability performance on the small and medium enterprises. Manag. Environ. Qual. Manag Environ Qual. 2019;30(3):557–77.
[4] Khasna Kota S. Evaluasi Pekalongan. Kebijakan Transparansi Pengelolaan J. https://doi.org/10.31334/transparansi.v4i1.1573. Ilm. Ilmu Limbah Adm. Batik di 2021;4(1).
[5] Adomako S, Amankwah-Amoah J, Danso A, Dankwah GO. Chief executive officers’ sustainability orientation and firm environmental performance: networking and resource contingencies. Bus Strategy Environ. 2021;30(4):2184–93.
[6] Bassetti T, Blasi S, Sedita SR. The management of sustainable development: A longitudinal analysis of the effects of environmental performance on economic performance. Bus Strategy Environ. 2021;30(1):21–37.
[7] Suttipun M. The effect of integrated reporting on corporate financial performance: evidence from Thailand. Corp. Ownersh. Control. 2017;15(1):133–42.
[8] Adomako S, Amankwah-Amoah J, Danso A, Konadu R, Owusu-Agyei S. Environ mental sustainability orientation and performance of family and nonfamily firms. Bus Strategy Environ. 2019;28(6):1250–9.
[9] Laosirihongthong T, Adebanjo D, Choon Tan K. Green supply chain management practices and performance. Ind Manage Data Syst. 2013;113(8):1088–109.
[10] Paulraj A. Understanding the relationships between internal resources and capabilities, sustainable supply management and organizational sustainability. J Supply Chain Manag. 2011;47(1):19–37.
[11] Eltayeb TK, Zailani S, Ramayah T. Green supply chain initiatives among certified companies in Malaysia and environmental sustainability: investigating the outcomes. Resour Conserv Recycling. 2011;55(5):495–506.
[12] Abdul-Rashid SH, Sakundarini N, Raja Ghazilla RA, Thurasamy R. The impact of sustainable manufacturing practices on sustainability performance: empirical evidence from Malaysia. Int J Oper Prod Manage. 2017;37(2):182–204.
[13] Hooi HC, Ahmad NH, Amran A, Rahman SA. The functional role of entrepreneurial orientation and entrepreneurial bricolage in ensuring sustainable entrepreneurship. Manag Res Rev. 2016;39(12):1616–38.
[14] Hair JF, Hult GT, Ringle CM, Sarstedt M. A Primer on Partial Least Squares Structural Equation Modeling. Thousand Oaks: PLS-SEM; 2017.
[15] Manrique S, Martí-Ballester CP. Analyzing the effect of corporate environmental performance on corporate financial performance in developed and developing countries. Sustainability (Basel). 2017;9(11):1–30.
[16] Purnomo PK, Widianingsih LP. The Influence of Environmental Performance on Financial Performance with Corporate Social Responsibility (CSR) Disclosure as a Moderating Variable: Evidence from Listed Companies in Indonesia. Rev. Intergrative Bus. Econ. 2012;1(1):57–69.
[17] Adomako S, Ning E, Adu-Ameyaw E. Proactive environmental strategy and firm performance at the bottom of the pyramid. Bus Strategy Environ. 2021;30(1):422 31.
[18] Rehman SU, Bresciani S, Yahiaoui D, Giacosa E. Environmental sustainability orien tation and corporate social responsibility influence on environmental performance of small and medium enterprises: The mediating effect of green capability. Corp. Soc. Responsib. Environ. Manag. 2022;1-14. https://doi.org/10.1002/csr.2293