Application of MSME and Green Economy Principles for Sustainability in Indonesia and Malaysia
DOI:
https://doi.org/10.1229/tecempresarialjournal.v19i1.370Keywords:
Green Economy, MSME, Export, Investment, Labour.Abstract
To realize the principles of sustainable development, policies have been taken, especially in implementing the green economy in Indonesia and Malaysia. This research analyzes the influence of labor, exports, investment on MSME Green GDP and determines the comparison of MSME green GDP in Indonesia and Malaysia. This research uses quantitative methods for annual secondary data from 1990-2019 obtained through related agencies. The data analysis method begins with green economic valuation based on GDP of SME's which produces Green GDP of MSME, after that using Multiple Linear Regression. Test different dependent variables (different t test) to find out the comparison of Green GDP of MSME in Indonesia & Malaysia. For Indonesia, there is a simultaneous positive influence between MSME labor, MSME investment, MSME exports on MSME Green GDP, while partially there is a positive influence of MSME labor and MSME investment on MSME Green GDP, but for SME exports there is a negative influence on Green GDP MSME. The simultaneous influence of MSME employment, MSME investment, MSME exports on MSME Green GDP is 46%, the rest is influenced by other variables. For Malaysia, there is a positive simultaneous influence of MSME labor, MSME investment, SME exports on MSME Green GDP, while partially there is a negative influence of MSME labor and MSME investment on MSME Green GDP, but for MSME exports there is a positive influence, a negative impact on MSME Green GDP. The simultaneous influence of SME employment, MSME investment, SME exports on MSME Green GDP is 57%, the rest is influenced by other variables. Meanwhile, the different tests resulted in no significant difference in the Green GDP of MSME between Indonesia & Malaysia. The contribution of this research is as a basis for the policies of the two countries in creating green business mapping in the Indonesia & Malaysia.
References
. N. Laframboise and B. Loko, “Natural Disasters: Mitigating Impact, Managing Risks,” IMF Work. Pap., vol. 12, no. 245, p. 1, 2012, doi: 10.5089/9781475512717.001.
. T. Disaster, R. Emergency, and V. R. Cross, “Trends in disasters,” 2022, [Online]. Available: https://www.ifrc.org/sites/default/files/2023-01/20230130_2022_WDR_DataAnnex.pdf
. D. Gu, “Exposure and vulnerability to natural disasters for world’s cities,” United Nations Dep. Econ. Soc. Aff., no. Technical Paper No. 4., pp. 1–43, 2019, [Online]. Available: www.unpopulation.org.
. Center for Research on the Epidemiology of Disasters, “Extreme events defining our lives Executive summary,” Cent. Res. Epidemiol. Disasters, 2021, doi: 10.1787/eee82e6e-en.
. M. C. de Ruiter, A. Couasnon, M. J. C. van den Homberg, J. E. Daniell, J. C. Gill, and P. J. Ward, “Why We Can No Longer Ignore Consecutive Disasters,” Earth’s Futur., vol. 8, no. 3, 2020, doi: 10.1029/2019EF001425.
. A. D. Basiago, “Economic, social, and environmental sustainability in development theory and urban planning practice,” Environmentalist, vol. 19, no. 2, pp. 145–161, 1998, doi: 10.1023/A:1006697118620.
. E. Javanmardi, S. Liu, and N. Xie, Exploring the Challenges to Sustainable Development from the Perspective of Grey Systems Theory, vol. 11, no. 2. 2023. doi: 10.3390/systems11020070.
. E. A. Moallemi et al., “Achieving the Sustainable Development Goals Requires Transdisciplinary Innovation at the Local Scale,” One Earth, vol. 3, no. 3, pp. 300–313, 2020, doi: 10.1016/j.oneear.2020.08.006.
. S. Bansal, G. D. Sharma, M. M. Rahman, A. Yadav, and I. Garg, “Nexus between environmental, social and economic development in South Asia: evidence from econometric models,” Heliyon, vol. 7, no. 1, 2021, doi: 10.1016/j.heliyon.2021.e05965.
. U. R. de Oliveira, R. P. Menezes, and V. A. Fernandes, A systematic literature review on corporate sustainability: contributions, barriers, innovations and future possibilities, no. 0123456789. Springer Netherlands, 2023. doi: 10.1007/s10668-023-02933-7.
. Z. Ciekanowski and H. Wyrębek, “Impact of micro, small and medium-sized enterprises on economic security,” Polish J. Manag. Stud., vol. 22, no. 1, pp. 86–102, 2020, doi: 10.17512/pjms.2020.22.1.06.
. E. Endris and A. Kassegn, “The role of micro, small and medium enterprises (MSMEs) to the sustainable development of sub-Saharan Africa and its challenges: a systematic review of evidence from Ethiopia,” J. Innov. Entrep., vol. 11, no. 1, 2022, doi: 10.1186/s13731-022-00221-8.
. B. Surya, F. Menne, H. Sabhan, S. Suriani, H. Abubakar, and M. Idris, “Economic growth, increasing productivity of smes, and open innovation,” J. Open Innov. Technol. Mark. Complex., vol. 7, no. 1, pp. 1–37, 2021, doi: 10.3390/joitmc7010020.
. R. P. Larios-Francia and M. Ferasso, “The relationship between innovation and performance in MSMEs: The case of the wearing apparel sector in emerging countries,” J. Open Innov. Technol. Mark. Complex., vol. 9, no. 1, p. 100018, 2023, doi: 10.1016/j.joitmc.2023.100018.
. L. Anatan and Nur, “Micro, Small, and Medium Enterprises’ Readiness for Digital Transformation in Indonesia,” Economies, vol. 11, no. 6, 2023, doi: 10.3390/economies11060156.
. D. D’Amato and J. Korhonen, “Integrating the green economy, circular economy and bioeconomy in a strategic sustainability framework,” Ecol. Econ., vol. 188, no. June 2020, p. 107143, 2021, doi: 10.1016/j.ecolecon.2021.107143.
. F. G. Santeramo, “Circular and green economy: the state-of-the-art,” Heliyon, vol. 8, no. 4, p. e09297, 2022, doi: 10.1016/j.heliyon.2022.e09297.
. M. Wang, X. Zhao, Q. Gong, and Z. Ji, “Measurement of regional green economy sustainable development ability based on entropy weight-topsis-coupling coordination degree-A case study in Shandong Province, China,” Sustain., vol. 11, no. 2, 2019, doi: 10.3390/su11010280.
. S. Wang, J. Abbas, M. S. Sial, S. Álvarez-Otero, and L. I. Cioca, “Achieving green innovation and sustainable development goals through green knowledge management: Moderating role of organizational green culture,” J. Innov. Knowl., vol. 7, no. 4, 2022, doi: 10.1016/j.jik.2022.100272.
. W. Hediger, “Sustainable development and social welfare,” Ecol. Econ., vol. 32, no. 3, pp. 481–492, 2000, doi: 10.1016/S0921-8009(99)00117-2.
. J. H. Zhang et al., “Advancing the Sustainable Development Goals through improving eye health: a scoping review,” Lancet Planet. Heal., vol. 6, no. 3, pp. e270–e280, 2022, doi: 10.1016/S2542-5196(21)00351-X.
. P. Tortora and A. Agnelli, “Unclassified DEVELOPMENT CO-OPERATION DIRECTORATE Sustainable Ocean Economy Country Diagnostics of Indonesia This document is submitted for INFORMATION. For more information on Sustainable Ocean Economy see Contacts :,” no. April, 2021.
. M. Khanna, “Growing Green Business Investments in Asia and the Pacific: Trends and Opportunities,” Asian Dev. Bank, no. 72, 2020, [Online]. Available: https://www.adb.org/sites/default/files/publication/664446/sdwp-072-green-business-investments-asia-pacific.pdf
. Y. S. J. Chin, L. De Pretto, V. Thuppil, and M. J. Ashfold, “Public awareness and support for environmental protection-A focus on air pollution in peninsular Malaysia,” PLoS One, vol. 14, no. 3, pp. 1–21, 2019, doi: 10.1371/journal.pone.0212206.
. N. Z. Nik Wan, “The Benefits of Reducing Environmental Impacts: Experiences from Malaysian SMEs,” Proc. Acad. Symp. Soc. Sci., no. December, pp. 481–493, 2015, [Online]. Available: https://www.researchgate.net/publication/311952075_THE_BENEFITS_OF_REDUCING_ENVIRONMENTAL_IMPACTS_EXPERIENCES_FROM_MALAYSIAN_SMEs
. H. Musa and M. Chinniah, “Malaysian SMEs Development: Future and Challenges on Going Green,” Procedia - Soc. Behav. Sci., vol. 224, no. August 2015, pp. 254–262, 2016, doi: 10.1016/j.sbspro.2016.05.457.
. C. L. Alayón, K. Säfsten, and G. Johansson, “Barriers and Enablers for the Adoption of Sustainable Manufacturing by Manufacturing SMEs,” Sustain., vol. 14, no. 4, pp. 1–34, 2022, doi: 10.3390/su14042364.
. M. F. A. Bakar, M. Talukder, A. Quazi, and I. Khan, “Adoption of sustainable technology in the Malaysian SMEs sector: Does the role of government matter?,” Inf., vol. 11, no. 4, pp. 1–17, 2020, doi: 10.3390/INFO11040215.
. N. Derhab and Z. Elkhwesky, “A systematic and critical review of waste management in micro, small and medium-sized enterprises: future directions for theory and practice,” Environ. Sci. Pollut. Res., vol. 30, no. 6, pp. 13920–13944, 2023, doi: 10.1007/s11356-022-24742-7.
. N. Mokthsim and K. O. Salleh, “Malaysia’s Efforts toward Achieving a Sustainable Development: Issues, Challenges and Prospects,” Procedia - Soc. Behav. Sci., vol. 120, pp. 299–307, 2014, doi: 10.1016/j.sbspro.2014.02.107.
. R. A. Begum, A. Raihan, and M. N. M. Said, “Dynamic impacts of economic growth and forested area on carbon dioxide emissions in malaysia,” Sustain., vol. 12, no. 22, pp. 1–15, 2020, doi: 10.3390/su12229375.
. A. D. Bank, “Competitiveness, Industrial Modernization, and Trade Acceleration Program, Subprogram 1: Sector Assessment (Summary) - Industry and Trade,” 2024.
. LPEM FEB UI and UNDP, “Impact of Pandemic on MSMEs in Indonesia,” 2020. [Online]. Available: https://www.lpem.org/id/report-impact-of-covid-19-pandemic-on-msmes-in-indonesia/
. M. N. Salim, D. Susilastuti, and P. Astuty, “Determinants of Indonesian MSME Exports and Their Performance during the Covid-19 Pandemic,” J. Econ. Bus., vol. 4, no. 3, pp. 162–173, 2021, doi: 10.31014/aior.1992.04.03.379.
. Dalberg, “Increasing MSME access to climate finance,” 2015. [Online]. Available: http://www.dalberg.com/wp-content/uploads/2015/10/CDKN_20150924-MSME-Policy-Brief-vF-2.pdf
. W. S. Alaloul, M. A. Musarat, M. B. A. Rabbani, Q. Iqbal, A. Maqsoom, and W. Farooq, “Construction sector contribution to economic stability: Malaysian gdp distribution,” Sustain., vol. 13, no. 9, pp. 1–26, 2021, doi: 10.3390/su13095012.
. McKinsey, “The archipelago Economy: Unleashing Indonesia’s potential,” McKinsey Glob. Inst., no. September 2012, pp. 1–116, 2012, [Online]. Available: https://www.mckinsey.com/~/media/McKinsey/Featured Insights/Asia Pacific/The archipelago economy/MGI_Unleashing_Indonesia_potential_Full_report.ashx
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Tec Empresarial
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
