Green Knowledge, Green Business Practices, and Sustainability Performance in Indonesian Batik SMEs: The Mediating Role of Green Commitment
Keywords:
Green Knowledge; Green Human Capital; Intellectual Capital; Green Business Practices; Green Commitment; Sustainability Performance; Batik SMEsAbstract
This study examines green knowledge, conceptualized as green human capital within the intellectual capital framework, and green business practices as correlates of sustainability performance among batik small and medium enterprises (SMEs) in Indonesia, with green commitment as a mediating variable. Its purpose is to clarify how an environmentally oriented intangible resource and operational green practices are associated with sustainability outcomes in an emerging-market setting. Using a quantitative, cross-sectional design, survey responses were gathered from 386 owners and managers of batik SMEs located in Pekalongan, Yogyakarta, and Cirebon, Indonesia. Partial Least Squares Structural Equation Modeling (PLS-SEM) was applied to assess the associations among green knowledge, green business practices, green commitment, and sustainability performance. The results show that green knowledge and green business practices are both positively and significantly associated with sustainability performance, with coefficients of similar magnitude. Green commitment is also positively associated with sustainability performance and partially mediates the relationships of green knowledge and green business practices with that outcome; the indirect effects are significant but modest relative to the direct effects. The study contributes to intellectual capital and sustainability scholarship by specifying green knowledge as green human capital that combines codified environmental information with firm-specific, experience-based know-how; by distinguishing resources, practices, commitment, and performance within one model; and by specifying the organizational mechanisms through which green commitment links knowledge and practices to sustainability performance in a traditional, culturally rooted industry. Because the data are cross-sectional, the relationships are interpreted as associations rather than causal effects.
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