Environmental analysis and impact on green business strategy and performance in SMEs post the Covid-19 pandemic

Abstract

Purpose: This study aims to obtain empirical evidence on the effect of environmental analysis on environmentally friendly business strategies and performance in SMEs after the Covid-19 Pandemic. Methodology: The study included primary data sources such as environmental orientation, top management awareness, environmental performance, green business strategy, and SMEs performance. It involved 103 SMEs, of which 36 were in the food processing industry, 37 were in the leather processing industry, and 30 were involved in furniture manufacturing. Findings: In this study, 103 SMEs were examined with a focus on performance, environmental performance, top management environmental awareness, green business strategy, and environmental orientation. These findings can support resource-based display theory and assist corporate management in making judgments regarding business plans. A positive mediation association between ecological performance and environmental orientation toward green company strategy through top management’s environmental awareness was also discovered in this study. Implications of research: A mediating relationship between environmental direction, green business strategy, and top management’s ecological awareness and performance orientation is revealed, which supports managers in their decision-making. Originality/value: This study focuses on green business strategies, environmental performance, environmental performance awareness, and environmental orientation to improve the operations of Indonesian SMEs and address environmental challenges.