STRATEGIC MANAGEMENT APPROACHES FOR MSMES TO THRIVE IN THE GREEN ECONOMY LANDSCAPE
Keywords:
Strategic Management, Green Economy, MSMEs, Competitive Advantage, Sustainable MarketingAbstract
The transition to a green economy presents a formidable challenge for Micro, Small, and Medium Enterprises (MSMEs), requiring them to adapt their strategic management frameworks to incorporate environmental sustainability. This study aims to identify and analyze effective strategic management approaches that enable MSMEs to achieve a competitive advantage within this evolving landscape. Employing a quantitative research design, data were collected via a structured questionnaire from 250 MSME owners/managers operating in Indonesia's manufacturing and services sectors. The collected data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the proposed hypotheses. The results indicate that the integration of green business strategies and sustainable marketing practices significantly enhances sustainable competitive performance (β = 0.45, p < 0.001). Furthermore, digital transformation acts as a powerful moderating variable, strengthening the positive effect of green strategic orientation on competitive advantage (β = 0.28, p < 0.01). The study also reveals that investments in green entrepreneurial knowledge and ethical considerations positively influence the adoption of sustainable practices. The discussion contextualizes these findings within the existing literature, highlighting the synergistic role of digital tools and green finance integration. This research contributes to the strategic management literature by providing a validated framework for MSMEs to navigate the green economy, emphasizing the need for integrated, technology-enabled, and knowledge-driven approaches. The findings offer practical insights for MSME owners, policymakers, and business support organizations to foster sustainable and resilient enterprise development.
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