Plastic Waste to Green Economy through Green Products and Green Packaging on Consumer Purchase Decisions of Micro Small Medium Enterprises in East Java Tourism

Abstract

Green packaging has emerged as a viable strategy to promote environmental responsibility and improve the quality of life. This study examines the impact of Green Products and Green Packaging on purchase decisions, as well as their direct and indirect effects on the Green Economy. Data were collected through questionnaires, observations, and interviews involving micro, small, and medium enterprises in East Java’s tourism sector, as well as local consumers. Structural Equation Modelling was employed for analysis. The results show that environmentally friendly products and environmentally friendly packaging significantly increase consumer purchase decisions, which subsequently strengthen green economic outcomes. Both variables also demonstrate positive direct effects on green economic development, while purchase decisions function as a partial mediator. The model demonstrates strong explanatory power, supporting the notion that sustainable product attributes influence consumer behaviour. These findings underscore the significance of sustainable consumer behaviour and provide strategic insights for micro, small, and medium enterprises to enhance eco-branding and accelerate green economic transitions.