IDEAS home Printed from https://ideas.repec.org/a/adi/ijbess/v4y2022i4p96-107.html
   My bibliography  Save this article

The role of environmental commitment and green creativity on business performance mediated by circular economy implementation

Author

Listed:
  • Ayu Widhiastuti

    (Master of Management Study Program, Business and Economics Faculty, Indonesian Islamic University, Yogyakarta, Indonesia)

  • Muafi Muafi

    (Department of Management, Business and Economics Faculty, Universitas Islam Indonesia, Yogyakarta, Indonesia)

Abstract

This study aims to examine and analyze the influence of green creativity and environmental commitment on business performance by considering the mediating influence of circular economy implementation in batik craft small and medium industries in Sleman Regency. This study is carried out using a quantitative method, with several samples of 120 respondents, the owner or manager of the natural dye batik crafts enterprise in Sleman Regency. The sampling technique is using a non-probability sampling technique. The data is collected by distributing questionnaires electronically. The research variables used in this study are green creativity and environmental commitment as the exogenous variable, business performance as the endogenous variable, and circular economy implementation as mediating variable. The data analysis is carried out using Partial Least Square (PLS) with the software of SmartPLS 3.0. The results of this study show that: (1) Green creativity has a significant favorable influence on the business performance of batik craft SMEs in Sleman Regency; (2) Environmental commitment has a significant positive influence on circular economy implementation; (3) Circular economy implementation has a significant positive influence on business performance, and (4) Circular economy implementation is not proven as mediating variable in the relationship of environmental commitment and business performance in batik craft SMEs in Sleman Regency. This study provides suggestions for batik owners to increase the creation of product samples for customers by utilizing virtual services to reduce the exploitation of natural resources. Further research is required at different times since this study is carried out during the Covid-19 pandemic.

Suggested Citation

  • Ayu Widhiastuti & Muafi Muafi, 2022. "The role of environmental commitment and green creativity on business performance mediated by circular economy implementation," International Journal of Business Ecosystem & Strategy (2687-2293), Bussecon International Academy, vol. 4(4), pages 96-107, October.
    • Handle: RePEc:adi:ijbess:v:4:y:2022:i:4:p:96-107
    DOI: 10.36096/ijbes.v4i4.355
    as

    Download full text from publisher

    File URL: https://www.bussecon.com/ojs/index.php/ijbes/article/view/355/188
    Download Restriction: no
    File URL: https://doi.org/10.36096/ijbes.v4i4.355
    Download Restriction: no
    File URL: https://libkey.io/10.36096/ijbes.v4i4.355?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ilija Moric & Jelena Šaković Jovanović & Rajka Đoković & Sanja Peković & Đurđica Perović, 2020. "The Effect of Phases of the Adoption of the Circular Economy on Firm Performance: Evidence from 28 EU Countries," Sustainability, MDPI, vol. 12(6), pages 1-12, March.
    2. Yu-Shan Chen & Ching-Hsun Chang, 2013. "The Determinants of Green Product Development Performance: Green Dynamic Capabilities, Green Transformational Leadership, and Green Creativity," Journal of Business Ethics, Springer, vol. 116(1), pages 107-119, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Retno Purwani Setyaningrum & Muamar Nur Kholid & Priyo Susilo, 2023. "Sustainable SMEs Performance and Green Competitive Advantage: The Role of Green Creativity, Business Independence and Green IT Empowerment," Sustainability, MDPI, vol. 15(15), pages 1-14, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. German Arana‐Landin & Waleska Sigüenza & Beñat Landeta‐Manzano & Iker Laskurain‐Iturbe, 2024. "Circular economy: On the road to ISO 59000 family of standards," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1977-2009, May.
    2. Chotia, Varun & Cheng, Yue & Agarwal, Reeti & Vishnoi, Sushant Kumar, 2024. "AI-enabled Green Business Strategy: Path to carbon neutrality via environmental performance and green process innovation," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    3. Serdar Çop & Victor Oluwafemi Olorunsola & Uju Violet Alola, 2021. "Achieving environmental sustainability through green transformational leadership policy: Can green team resilience help?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 671-682, January.
    4. Aham Edward Kanuto & Niu Xionying, 2022. "Impact of corporate social responsibility, trade enhancement, and firm characteristics on firm performance," International Journal of Science and Business, IJSAB International, vol. 10(1), pages 1-11.
    5. Ibrahim A. Elshaer & Alaa M. S. Azazz & Yahdih Semlali & Mahmoud A. Mansour & Mohammed N. Elziny & Sameh Fayyad, 2024. "The Nexus between Green Transformational Leadership, Employee Behavior, and Organizational Support in the Hospitality Industry," Administrative Sciences, MDPI, vol. 14(6), pages 1-22, May.
    6. Yu‐Shan Chen & Xin Yan, 2022. "The small and medium enterprises' green human resource management and green transformational leadership: A sustainable moderated‐mediation practice," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1341-1356, September.
    7. Yu‐Shan Chen & Shu‐Hsien Lin & Chun‐Yu Lin & Shu‐Tzu Hung & Chih‐Wei Chang & Ching‐Wen Huang, 2020. "Improving green product development performance from green vision and organizational culture perspectives," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 222-231, January.
    8. Samuel Adomako & Nguyen Phong Nguyen, 2024. "Responsible entrepreneurship, social innovation, and entrepreneurial performance: Does commitment to SDGs matter?," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4887-4900, July.
    9. Mittal, Swati & Dhar, Rajib Lochan, 2016. "Effect of green transformational leadership on green creativity: A study of tourist hotels," Tourism Management, Elsevier, vol. 57(C), pages 118-127.
    10. Szalavetz Andrea, 2018. "Sustainability-oriented cross-functional collaboration to manage trade-offs and interdependencies," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 54(1), pages 3-17, March.
    11. Afriyadi Cahyadi & Diah Natalisa & József Poór & Badia Perizade & Katalin Szabó, 2022. "Predicting the Relationship between Green Transformational Leadership, Green Human Resource Management Practices, and Employees’ Green Behavior," Administrative Sciences, MDPI, vol. 13(1), pages 1-15, December.
    12. Wei Jiang & Kui Wang & Kevin Zheng Zhou, 2023. "How Political Ties and Green Innovation Co-evolve in China: Alignment with Institutional Development and Environmental Pollution," Journal of Business Ethics, Springer, vol. 186(4), pages 739-760, September.
    13. Abu Elnasr E. Sobaih & Ahmed Hasanein & Ibrahim Elshaer, 2020. "Influences of Green Human Resources Management on Environmental Performance in Small Lodging Enterprises: The Role of Green Innovation," Sustainability, MDPI, vol. 12(24), pages 1-19, December.
    14. Wenjing Cai & Chun Yang & Bart A. G. Bossink & Jingtao Fu, 2020. "Linking Leaders’ Voluntary Workplace Green Behavior and Team Green Innovation: The Mediation Role of Team Green Efficacy," Sustainability, MDPI, vol. 12(8), pages 1-17, April.
    15. Wei Zhang & Xiuli Zhong & Xue Li, 2024. "The impact of degree of internationalization of MNEs on green innovation performance: The moderating role of absorptive capacity and global dynamic management capability," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(1), pages 659-675, January.
    16. Zelong Wei & Hao Shen & Kevin Zheng Zhou & Julie Juan Li, 2017. "How Does Environmental Corporate Social Responsibility Matter in a Dysfunctional Institutional Environment? Evidence from China," Journal of Business Ethics, Springer, vol. 140(2), pages 209-223, January.
    17. Tai-Wei Chang, 2020. "Corporate Sustainable Development Strategy: Effect of Green Shared Vision on Organization Members’ Behavior," IJERPH, MDPI, vol. 17(7), pages 1-20, April.
    18. Farzana Riva & Solon Magrizos & Mohammad Rabiul Basher Rubel, 2021. "Investigating the link between managers' green knowledge and leadership style, and their firms' environmental performance: The mediation role of green creativity," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3228-3240, November.
    19. Abdelmohsen A. Nassani & Asad Javed & Magdalena Radulescu & Zahid Yousaf & Carmen Gabriela Secara & Claudia Tolea, 2022. "Achieving Green Innovation in Energy Industry through Social Networks, Green Dynamic Capabilities, and Green Organizational Culture," Energies, MDPI, vol. 15(16), pages 1-12, August.
    20. Alice Mazzucchelli & Roberto Chierici & Manlio Del Giudice & Ilenia Bua, 2022. "Do circular economy practices affect corporate performance? Evidence from Italian large‐sized manufacturing firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(6), pages 2016-2029, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adi:ijbess:v:4:y:2022:i:4:p:96-107. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Umit Hacioglu (email available below). General contact details of provider: https://edirc.repec.org/data/ibihutr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.