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Government support, eco-regulation and eco-innovation adoption in SMEs: The mediating role of eco-environmental
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Small and medium-sized enterprises (SMEs) play a vital role in economic development and sustainability. In Indonesia, SMEs account for a significant portion of the economy but face challenges in adapting to eco-innovation practices. To address this issue, this study examines the role of eco-regulation and government support in promoting eco-innovation adaptation among SMEs in Indonesia. We also explore the moderating effect of eco-environmental factors, including eco-customers, eco-managerial, eco-competition, and eco-process innovation. We collect data from 859 SMEs in Indonesia and use the Structural Equal Modeling-Partial Least Square (SEM-PLS) method to analyze the data. We measure eco-regulation and government support as independent variables and eco-environmental factors as moderating variables. We use eco-innovation adaptation as the dependent variable. Our results show that eco-regulation and government support have a positive effect on eco-environmental factors, except for eco-customers. We also find that eco-environmental factors have a positive impact on eco-innovation adaptation. Furthermore, we find that eco-regulation and government support indirectly influence eco-innovation adaptation through the mediation of eco-environmental factors. In conclusion, our study highlights the importance of eco-regulation and government support in promoting eco-innovation adaptation among SMEs in Indonesia. We find that eco-environmental factors mediate the relationship between eco-regulation and government support and eco-innovation adaptation. Our study provides valuable insights for policymakers and practitioners seeking to enhance SMEs' eco-innovation practices and promote sustainable development.
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“Ecological Innovationinnovation helps SMEs sustain”
From Innovation as A Driver of SMEs Sustainability: A Systematic Review of the Literature (2025) · cites this paper as Achmad et al., 2023
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Cited by
Sorted by citations
Innovation as A Driver of SMEs Sustainability: A Systematic Review of the Literature
Latifannisa, N., Wardi, Y., & Marwan (2025) · BASKARA: Journal of Business and Entrepreneurship · doi:10.54268/baskara.v7i2.26926 · Cited by 2
Metadata
- Authors
- Achmad, G. N., Yudaruddin, R., Nugroho, B. A., Fitrian, Z., Suharsono, S., Adi, A. S., Hafsari, P., & Fitriansyah, F.
- Affiliations
- Mulawarman University (ID)
- Universitas Muhammadiyah Kalimantan Timur (ID)
- Corresponding author
- Achmad, Gusti Noorlitaria
- Yudaruddin, Rizky
- Nugroho, Bramantyo Adi
- Fitrian, Zhikry
- Suharsono, Suharsono
- Adi, Ari Sasmoko
- Hafsari, Pebiansyah
- Fitriansyah, Fitriansyah
- ORCID
- Venue
- Journal of Open Innovation: Technology, Market, and Complexity
- Publisher
- Elsevier BV
- Published
- 2023-12
- Volume
- 9
- Issue
- 4
- Pages
- 100158
- ISSN
- 2199-8531 (ISSN-L)
- OpenAlex
- W4387817224
- Cited by
- 69
- References
- 0
- Citations by year
- 2026: 31 · 2025: 22 · 2024: 15 · 2023: 1
- FWCI
- 18.22
- Type
- journal article
- Language
- en
- Open access
- gold
- doi.org
- Licence
- Locations
- Journal of Open Innovation Technology Market and Complexity (publishedVersion, cc-by)
- DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion, cc-by-sa)
- Topics
- Social Sciences › Business, Management and Accounting › Marketing › Environmental Sustainability in Business
- Social Sciences › Business, Management and Accounting › Management of Technology and Innovation › Sustainability and Innovation in Business
- Social Sciences › Business, Management and Accounting › Strategy and Management › Sustainable Supply Chain Management
- Keywords
- small and medium-sized enterprises, government support, mediating effect, sustainable development, Indonesia
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- Achmad, G. N., Yudaruddin, R., Nugroho, B. A., Fitrian, Z., Suharsono, S., Adi, A. S., Hafsari, P., & Fitriansyah, F. (2023). Government support, eco-regulation and eco-innovation adoption in SMEs: The mediating role of eco-environmental. Journal of Open Innovation: Technology, Market, and Complexity. https://doi.org/10.1016/j.joitmc.2023.100158