Strategic implementation of environmentally friendly innovation of small and medium-sized enterprises in Indonesia

Abstract

This study aims to empirically test the influence of market orientation strategies, and value co-creation on green product innovation, and also to test the value co-creation and green product innovation on marketing performance in the context of Micro Small and Medium Enterprises (SMEs) in Yogyakarta, Indonesia. The study distributed questionnaires to 464 SMEs’ entrepreneurs. By using Structural Equation Modeling (SEM) as analytical tool, the results show that market orientation, value co-creation positively affect green product innovation in the context of small and medium-sized enterprises. In addition, the results of this study also show that value co-creation, and green product innovation have a positive effect on marketing performance.