Green Innovation And Msme Performance: The Mediating Role Of Customer Satisfaction And The Moderating Role Of Digital Marketing In Sumbawa Regency

Wahyu Haryadi

doi:10.63922/ijebir.v5i06.6661

Wahyu Haryadi Doctoral Program in Management Science, Universitas Dr. Soetomo, Surabaya, Indonesia and Faculty of Economics and Business, Universitas Samawa, Sumbawa, Indonesia

DOI: https://doi.org/10.63922/ijebir.v5i06.6661

Keywords: green innovation, digital marketing, customer satisfaction, MSME performance, PLS-SEM.

Abstract

This study examines the effect of green innovation on the performance of micro, small, and medium enterprises (MSMEs), with customer satisfaction as a mediating variable and digital marketing as a moderating variable. The study focuses on MSMEs in Sumbawa Regency and applies a quantitative explanatory cross-sectional design. Instrument testing was conducted on 50 respondents, while the structural model was tested using data from 100 respondents. Data were analyzed using SPSS and Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS. The results show that all indicators meet validity and reliability requirements. Green innovation has a positive effect on customer satisfaction (β = 0.528; p < 0.001) and MSME performance (β = 0.382; p < 0.001). Customer satisfaction positively affects MSME performance (β = 0.346; p < 0.001) and partially mediates the effect of green innovation on MSME performance (indirect effect = 0.183; p = 0.001). Digital marketing positively affects MSME performance (β = 0.442; p < 0.001) and strengthens the relationship between green innovation and MSME performance (β = 0.292; p < 0.001). The model explains 61.8% of the variance in MSME performance. These findings indicate that environmentally oriented innovation creates stronger business results when it improves customer experience and is communicated through effective digital channels.

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