Impact of green practices through green product and service innovation: sustainable product-service system performance model

Abstract

Today, the manufacturing industry faces worldwide challenges, ecological hazards, climate change, and the use of non-renewable natural resources, so industry players are manoeuvring in a sustainable direction. In this case, green manufacturing practices are used as a starter to contribute to products and services that can help achieve sustainable development goals. The research aims to explore green practices with empirical evidence in the literature and expert opinions of tire manufacturing industry practitioners. The study proposes a framework of key factors: TMC (Top Management Commitment), PPP (Pollution Prevention Practices), and PSP (Product Stewardship Practices) that can affect GPSI (Green Product Service Innovation) significantly affect SPSSP (Sustainable Product-Service System Performance). The study used statistical analysis to calculate the minimum sample size with (G*Power 3.1), the results were 205 respondents adequate, and structural model analysis using Structural Equation Modeling (SmartPLS 4.0). The results show that TMC and PSP significantly affect SPSSP, but PPP does not affect SPSSP. The findings also suggest that the relationship between key factors and SPSSP can be mediated by GPSI. The recommendations of this study provide suggestions to top management for the adoption of GPSI as a novelty in green manufacturing, and as value creation for sustainable development achievements.