Key Determinants of SMEs Sustainable Performance in West Sumatra: A PLS-SEM Analysis
Main Article Content
Keywords
sustainability performance, triple-bottom-line, market orientation, stakeholder pressure, SMEs
Abstract
Rising environmental pressures from population growth and industrial expansion in Indonesia necessitate sustainable business practices. Yet, adoption among Small and Medium-sized Enterprises (SMEs) remains obstructed by low energy efficiency, inadequate waste management, limited technological and financial access, and managerial shortcomings. Using two theories, resource based view (RBV) and institutional theory (IT), this study has mapped the relationships between internal and external factors and the triple-bottom-line performance of SMEs. This study investigates and tests these relationships amongst the factors that influence environmental, social, and economic sustainability performance by Partial Least Squares Structural Equation Modeling (PLS-SEM). This study designs the approach as a cross-sectional survey, gathering primary data from 110 SMEs to assess the proposed relationships among internal, external, and sustainability performance. Internal factors consist of green entrepreneurial orientation (GEO), green innovation (GI), and leadership commitment (LC), while market orientation (MO) and stakeholder pressure (SP) represent the external factors. Findings indicate that market orientation (MO) has a positive and significant effect across the entire triple-bottom-line (financial, social, environmental), whereas stakeholders pressure (SP) exerts a significant positive effect only on the financial and social dimensions. On the other hand, the internal factor comprising green entrepreneurial orientation (GEO), green innovation (GI), and leadership commitment (LC) does not significantly impact sustainability performance. These results indicate that among the external drivers examined, market orientation is the most comprehensive predictor of sustainability performance, whereas stakeholder pressure has a significant effect only on the financial and social dimensions. Practically, Indonesian SMEs are advised to constantly interpret and react to market signals and stakeholder expectations, whereas, policymakers are recommended to pair the tool of stakeholder pressure with capability-enhancement programs in terms of the operational system.
Downloads
Download data is not yet available.
References
[1] S. Allifah, Y. Syaukat, and P. Wijayanti, "Dampak Tenaga Air dan Bahan Bakar Fosil terhadap Implementasi Ekonomi Hijau di Indonesia," J. Sumberd. Alam dan Lingkung., vol. 9, no. 3, 2022. doi: 10.21776/ub.jsal.2022.009.03.3.
[2] N. I. Aulia, N. S. Indrasti, and A. Ismayana, "Study and Analysis on The Application of Cleaner Production in The Urea Fertilizer Industry (PT X) in Sumatera," Andalasian Int. J. Appl. Sci. Eng. Technol., vol. 4, no. 2, pp. 143-155, Aug. 2024, doi: 10.25077/aijaset.v4i2.126.
[3] A. K. Garside, T. Y. Rosiani, A. Amanda, T. E. Saputro, and E. de M. e Oliveira, "Enhanced Sustainability Assessment Framework for Plywood Manufacturing: A Multi-Method Approach Using Delphi Technique, BWM, and S-VSM," J. Optimasi Sist. Ind., vol. 23, no. 2, pp. 188-206, 2024, doi: 10.25077/josi.v23.n2.p188-206.2024.
[4] A. B. L. de Sousa Jabbour, N. O. Ndubisi, and B. M. R. P. Seles, "Sustainable development in Asian manufacturing SMEs: Progress and directions," Int. J. Prod. Econ., vol. 225, no. 107567, 2020. doi: 10.1016/j.ijpe.2019.107567.
[5] E. Yadegaridehkordi, B. Foroughi, M. Iranmanesh, M. Nilashi, Ghobakhloo, and Morteza, "Determinants of environmental, financial, and social sustainable performance of manufacturing SMEs in Malaysia," Sustain. Prod. Consum., vol. 35, pp. 129-140, 2023. doi: 10.1016/j.spc.2022.10.026.
[6] B. Supriyatno, A. Hakim, S. Ningsih, and S. Herawati, "Analysis of Indonesia's Human Resource Development," Int. J. Res. Innov. Soc. Sci., vol. 8, no. 4, pp. 1175-1189, 2024, doi: 10.47772/IJRISS.
[7] Ali Avvienceena Al Attqia, Arifudin, Moh. Haikal Jamaludin, Tegar Fiki Haikal, and Rizki Bayhaqi, "Analisis Pengembangan Usaha Kecil dan Menengah di Lingkungan Berpenghasilan Rendah," J. Ekon. dan Pembang. Indones., vol. 2, no. 2, pp. 264-271, 2024, doi: 10.61132/jepi.v2i2.591.
[8] A. Fitrianto, F. Suhariadi, and N. B. Minarno, "Challenges and Opportunities in Human Resource Management in Indonesian Law Enforcement: A Literature Review," Tech. Soc. Sci. J., vol. 67, pp. 471-478, 2025. doi: 10.47577/tssj.v67i1.12192.
[9] A. Koliby I. S., H. H. Abdullah, and M. N. Suki., "Linking entrepreneurial competencies, innovation and sustainable performance of manufacturing SMEs," Asia-Pacific J Bus Adm, vol. 16, no. 1, pp. 21-40, 2024. doi: 10.1108/APJBA-09-2021-0480.
[10] T. Edwin, U. Khairul, A. Nur, R. Mardatillah, and M. A. Satria, "Tingkat Kesadaran Lingkungan Mahasiswa sebagai Kontribusi terhadap Tujuan Pembangunan Berkelanjutan (SDGs)," Dampak, vol. 22, no. 2, pp. 96-103, Jul. 2025, doi: 10.25077/dampak.22.2.96-103.2025.
[11] H. Fandeli, N. Jamarun, R. Amani, J. Putri, and F. F. Alvendri, "Pengaruh turbulensi dan keberlanjutan lingkungan terhadap kinerja finansial IKM di kota padang," J. Sci. Soc. Res., vol. 8, no. 2, pp. 1254-1265, 2025.
[12] N. Suleman and M. K. Thalib, "Keberlanjutan UMKM Ditinjau Dari Digitalisasi UMKM, Financial Literacy, Dan Behaviour Financial," Gorontalo Account. J., vol. 7, no. 1, pp. 27-35, 2024, doi: 10.32662/gaj.v7i1.3271.
[13] H. M. U. Khizar, M. J. Iqbal, and M. Ahsan, "Sustainability Outcomes in SMEs: A Configurational View of the Interplay of Strategic Orientations and Environmental Conditions," J. Macromarketing, vol. 44, no. 2, 2023. doi: 10.1177/02761467231203311.
[14] N. S. Naharuddin, R. Abdul Rahim, and R. Ngah, "Determinants Impacting the Triple Bottom Line Sustainability Performance in SMEs: A Systematic Literature Analysis and Future Research Agenda," Adv. Soc. Sci. Res. J., vol. 11, no. 2.2, pp. 66-77, 2024, doi: 10.14738/assrj.112.2.16401.
[15] H. Fandeli et al., Sustainability dalam Manajemen UMKM: Perspektif Lingkungan, Sosial, dan Ekonomi. Medan: Yayasan Kita Menulis, 2025.
[16] R. V. Listanti, D. N. Fadillah, and R. Destiana, "Triple Bottom Line Study: Sustainability, Technology Utilization, and Social Media Effectiveness in MSMEs: A Case Study of MSMEs in Cirebon Regency," Indones. J. Adv. Res., vol. 3, no. 7, pp. 951-962, 2024 doi: 10.55927/ijar.v3i7.10123.
[17] J. B. Barney, D. J. Ketchen Jr, and M. Wright, "The future of resource-based theory: revitalization or decline?," J. Manage., vol. 37, no. 5, pp. 1299-1315, 2011. doi: 10.1177/0149206310391805.
[18] David, Robert J, Pamela S Tolbert, and Johnny Boghossian, 'Institutional Theory in Organization Studies' (23 Dec. 2019), in Donald D Bergh (ed.), Oxford Research Encyclopedia of Business and Management (New York, NY, online edn, Oxford Academic, 29 Mar. 2017, doi: 10.1093/acrefore/9780190224851.013.158.
[19] L. H. Al-Abbadi and A. R. Abu Rumman, "Sustainable performance based on entrepreneurship, innovation, and green HRM in e-Business Firms," Cogent Bus. Manag., vol. 10, no. 1, Dec. 2023, doi: 10.1080/23311975.2023.2189998.
[20] M. R. Linda, V. Pujani, Syafrizal, Ma'ruf, and S. Muhidin, "Enhancing Sustainable Performance in Hotel Industry: Supplier Innovativeness and Supply Chain Integration," J. Optimasi Sist. Ind., vol. 24, no. 1, pp. 140-155, Jun. 2025, doi: 10.25077/josi.v24.n1.p140-155.2025.
[21] A. A. Adamu, C. Y. Wan, and A. H. Gorondutse, "Determinants of Sustainable Performance of SMEs: A Proposed Framework," Int. J. Res. Sci. Innov. |, vol. 6, no. 6, pp. 182-188, 2019.
[22] S. Syahidun, V. Rivai, I. Siswanti, and L. C. Nawangsari, "Exploring Dimensions of Corporate Sustainability: A Literature Review," KnE Soc. Sci., vol. 10, no. 21, pp. 138-146, Sep. 2025, doi: 10.18502/kss.v10i21.19699.
[23] A. Alifwansyah, M. Al Musadieq, Z. Arifin, and S. Worokinasih, "A Systematic Review of Firm Sustainability Metrics: Analytical Approaches to Performance and Impact Assessment," KnE Soc. Sci., vol. 10, no. 13, pp. 118-133, Jun. 2025, doi: 10.18502/kss.v10i13.18945.
[24] [24] Shivani, S., S. Sharma, and S. Singh. 2025. "Linking Green Entrepreneurial Orientation to Sustainable Firm Performance: Insights From a Mixed Method Study." Business Strategy and the Environment34, no. 8: 10313-10348. doi: 10.1002/bse.70111.
[25] J. Martínez-Falcó et al., "Green Innovation: Integrating Economic Growth With Environmental Stewardship," in Green Supply Chain Management Practice and Principles, edited by Javier Martínez-Falcó, et al., IGI Global Scientific Publishing, 2024, pp. 150-167. doi: 10.4018/979-8-3693-3486-7.ch008
[26] Z. Hatipoğlu and G. Akduman, "The Mediating Role of Sustainable Leadership in Green Human Resource Management Practices and Organizational Commitment: A Case Study in Turkey," Sustain. 2025, Vol. 17, Page 4991, vol. 17, no. 11, p. 4991, May 2025, doi: 10.3390/su17114991.
[27] M. S. Islam, M. R. B. Rubel, and M. M. Hasan, "Environmental and Social Performance of the Banking Industry in Bangladesh: Effect of Stakeholders' Pressure and Green Practice Adoption," Sustain. 2023, Vol. 15, Page 8665, vol. 15, no. 11, p. 8665, May 2023, doi: 10.3390/su15118665.
[28] S. Adomako and M. D. Tran, "Sustainable environmental strategy, firm competitiveness, and financial performance: Evidence from the mining industry," Resour. Policy, vol. 75, p. 102515, Mar. 2022, doi: 10.1016/j.resourpol.2021.102515.
[29] J. H. Cheah, F. Magno, and F. Cassia, "Reviewing the SmartPLS 4 software: the latest features and enhancements," J. Mark. Anal., vol. 12, no. 1, pp. 97-107, Mar. 2024, doi: 10.1057/s41270-023-00266-y.
[30] Singh, S. K., Del Giudice, M., Chiappetta Jabbour, C. J., Latan, H., & Sohal, A. S. (2022). Stakeholder pressure, green innovation, and performance in small and medium-sized enterprises: The role of green dynamic capabilities. Business Strategy and the Environment, 31(1), 500-514. doi: 10.1002/bse.2906.
[31] S. K. Singh, M. Del Giudice, R. Chierici, and D. Graziano, "Green innovation and environmental performance: The role of green transformational leadership and green human resource management," Technol. Forecast. Soc. Change, vol. 150, p. 119762, Jan. 2020, doi: 10.1016/j.techfore.2019.119762.
[32] A. Lutfi, A. Al-Hiyari, I. A. Elshaer, M. Alrawad, and M. A. Almaiah, "Green environmental management system and environmental performance: Results from PLS-SEM and fsQCA," Sustain. Futur., vol. 8, p. 100276, Dec. 2024, doi: 10.1016/j.sftr.2024.100276.
[33] B. P. Komba, M. W. A. Chattha, A. Fatima, P. C. Thomson, L. A. González, and M. F. Hyder, "Assessing the environmental, economic, and social impacts of industrial mining on agricultural communities in Sierra Leone: A sustainable approach using PLS-SEM," Clean. Responsible Consum., vol. 16, p. 100250, Mar. 2025, doi: 10.1016/j.clrc.2025.100250.
[34] D. P. Faeni, R. P. Faeni, Basrowi, and Sungkono, "Green HRM for sustainable aviation: An integration evaluation using PLS-SEM and fsQCA," Environ. Challenges, vol. 20, p. 101232, Sep. 2025, doi: 10.1016/j.envc.2025.101232.
[35] R. Navarro, V. Vega, H. Bayona, V. Bernal, and A. Garcia, "Relationship between technology acceptance model, self-regulation strategies, and academic self-efficacy with academic performance and perceived learning among college students during remote education," Front. Psychol., vol. 14, p. 1227956, Aug. 2023, doi: 10.3389/fpsyg.2023.1227956.
[36] B. G. Tabachnick and L. S. Fidell, Computer-assisted research design and analysis. Allyn & Bacon: Inc., 2001. doi: 10.5555/556711.
[37] J. F. Hair Jr., G. T. M. Hult, C. M. Ringle, M. Sarstedt, N. P. Danks, and S. Ray, Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R. in Classroom Companion: Business. Cham: Springer Nature, 2021. doi: 10.1007/978-3-030-80519-7.
[38] C. Fornell and D. F. Larcker, "Evaluating Structural Equation Models with Unobservable Variables and Measurement Error," J. Mark. Res., vol. 18, no. 1, pp. 39-50, 1981. doi: 10.1177/002224378101800104
[39] J. E. Cohen, Statistical Power Analysis for the Behavioral Sciences. Hillsdale: NJ: Lawrence Erlbaum Associates, Inc., 1988. Doi: 10.4324/9780203771587.
[40] F. Stocker, M. T. Zanini, and H. A. Reis Irigaray, "The role of multi-stakeholders in market orientation and sustainable performance," Mark. Intell. Plan., vol. 39, no. 8, pp. 1091-1103, Oct. 2021, doi: 10.1108/MIP-05-2021-0157.
[41] C. Appiah-Nimo and M. Chovancová, "Improving firm sustainable performance: the role of market orientation," Proc. Int. Conf. Bus. Excell., vol. 14, no. 1, pp. 780-787, Jul. 2020, doi: 10.2478/picbe-2020-0074.
[42] R. E. Freeman, Strategic management: A stakeholder approach. In Strategic Management. 1984. doi: 10.1017/CBO9781139192675.
[43] L. Tan, "Improving Corporate Performance through Stakeholder-Based ESG Practices," J. Educ. Humanit. Soc. Sci., vol. 30, pp. 6-12, Apr. 2024, doi: 10.54097/jts5nw21.
[44] S. M. Bhatti, Z. Liao, S. Kanwal, and Z. K. Mohamed Makhbul, "Green Strategic Orientation, a Gateway to Achieve Sustainable Performance Through Green Innovation: Dataset of Manufacturing Firms in Pakistan," 2023, doi: 10.2139/ssrn.4663914.
[45] J. Lozano, J. C. Saenz-Díez, E. Martínez, E. Jiménez, and J. Blanco, "Methodology to improve machine changeover performance on food industry based on SMED," Int. J. Adv. Manuf. Technol., vol. 90, no. 9-12, pp. 3607-3618, 2017, doi: 10.1007/s00170-016-9686-x.
[46] R. Öztürk, M. Öztürk, and Z. Kızılkan, "Meta-Analysis of the Relationship Between Green Entrepreneurial Orientation and Sustainable Firm Performance," Sustain. 2024, Vol. 16, Page 11224, vol. 16, no. 24, p. 11224, Dec. 2024, doi: 10.3390/su162411224.
[47] D. A. Zonna Lia and R. Fitri, "Green Entrepreneurial Orientation and Green Innovation in SMEs: An Evidence from Systematic Literature Review and Opportunities for Future Research Agenda," J. Econ. Financ. Manag. Stud., vol. 06, no. 11, Nov. 2023, doi: 10.47191/jefms/v6-i11-25.
[48] B. Tuncer and E. Korchagina, "A Systematic Literature Review and Conceptual Framework on Green Entrepreneurial Orientation," Adm. Sci. 2024, Vol. 14, Page 109, vol. 14, no. 6, p. 109, May 2024, doi: 10.3390/admsci14060109.
[49] A. K. Ahmadi, D. Fakhira, N. I. Sahfira, R. N. Siahaan, N. Syahputri, and M. K. Sihotang, "Analisis Aspek Pasar sebagai Pilar Utama dalam Studi Kelayakan Bisnis untuk Mendukung Keberlanjutan Usaha," J. Manaj. dan Ekon. Kreat., vol. 3, no. 1, pp. 209-221, Jan. 2025, doi: 10.59024/jumek.v3i1.530.
[50] K. M. Kura, L. Raimi, “Linking green entrepreneurial orientation and green market orientation to firm sustainability performance: a three-level meta-analysis,” Discov Sustain 6, 1088 (2025). doi: 10.1007/s43621-025-01755-z.
[51] F. Erbetta. G. Abrate, "Unraveling the joint effect of firm and stakeholder pro-environmental engagement on firm economic rewards: an application to waste management services", Social Responsibility Journal, Vol. 21 No. 3 pp. 498-519, doi: 10.1108/SRJ-04-2024-0290.
[2] N. I. Aulia, N. S. Indrasti, and A. Ismayana, "Study and Analysis on The Application of Cleaner Production in The Urea Fertilizer Industry (PT X) in Sumatera," Andalasian Int. J. Appl. Sci. Eng. Technol., vol. 4, no. 2, pp. 143-155, Aug. 2024, doi: 10.25077/aijaset.v4i2.126.
[3] A. K. Garside, T. Y. Rosiani, A. Amanda, T. E. Saputro, and E. de M. e Oliveira, "Enhanced Sustainability Assessment Framework for Plywood Manufacturing: A Multi-Method Approach Using Delphi Technique, BWM, and S-VSM," J. Optimasi Sist. Ind., vol. 23, no. 2, pp. 188-206, 2024, doi: 10.25077/josi.v23.n2.p188-206.2024.
[4] A. B. L. de Sousa Jabbour, N. O. Ndubisi, and B. M. R. P. Seles, "Sustainable development in Asian manufacturing SMEs: Progress and directions," Int. J. Prod. Econ., vol. 225, no. 107567, 2020. doi: 10.1016/j.ijpe.2019.107567.
[5] E. Yadegaridehkordi, B. Foroughi, M. Iranmanesh, M. Nilashi, Ghobakhloo, and Morteza, "Determinants of environmental, financial, and social sustainable performance of manufacturing SMEs in Malaysia," Sustain. Prod. Consum., vol. 35, pp. 129-140, 2023. doi: 10.1016/j.spc.2022.10.026.
[6] B. Supriyatno, A. Hakim, S. Ningsih, and S. Herawati, "Analysis of Indonesia's Human Resource Development," Int. J. Res. Innov. Soc. Sci., vol. 8, no. 4, pp. 1175-1189, 2024, doi: 10.47772/IJRISS.
[7] Ali Avvienceena Al Attqia, Arifudin, Moh. Haikal Jamaludin, Tegar Fiki Haikal, and Rizki Bayhaqi, "Analisis Pengembangan Usaha Kecil dan Menengah di Lingkungan Berpenghasilan Rendah," J. Ekon. dan Pembang. Indones., vol. 2, no. 2, pp. 264-271, 2024, doi: 10.61132/jepi.v2i2.591.
[8] A. Fitrianto, F. Suhariadi, and N. B. Minarno, "Challenges and Opportunities in Human Resource Management in Indonesian Law Enforcement: A Literature Review," Tech. Soc. Sci. J., vol. 67, pp. 471-478, 2025. doi: 10.47577/tssj.v67i1.12192.
[9] A. Koliby I. S., H. H. Abdullah, and M. N. Suki., "Linking entrepreneurial competencies, innovation and sustainable performance of manufacturing SMEs," Asia-Pacific J Bus Adm, vol. 16, no. 1, pp. 21-40, 2024. doi: 10.1108/APJBA-09-2021-0480.
[10] T. Edwin, U. Khairul, A. Nur, R. Mardatillah, and M. A. Satria, "Tingkat Kesadaran Lingkungan Mahasiswa sebagai Kontribusi terhadap Tujuan Pembangunan Berkelanjutan (SDGs)," Dampak, vol. 22, no. 2, pp. 96-103, Jul. 2025, doi: 10.25077/dampak.22.2.96-103.2025.
[11] H. Fandeli, N. Jamarun, R. Amani, J. Putri, and F. F. Alvendri, "Pengaruh turbulensi dan keberlanjutan lingkungan terhadap kinerja finansial IKM di kota padang," J. Sci. Soc. Res., vol. 8, no. 2, pp. 1254-1265, 2025.
[12] N. Suleman and M. K. Thalib, "Keberlanjutan UMKM Ditinjau Dari Digitalisasi UMKM, Financial Literacy, Dan Behaviour Financial," Gorontalo Account. J., vol. 7, no. 1, pp. 27-35, 2024, doi: 10.32662/gaj.v7i1.3271.
[13] H. M. U. Khizar, M. J. Iqbal, and M. Ahsan, "Sustainability Outcomes in SMEs: A Configurational View of the Interplay of Strategic Orientations and Environmental Conditions," J. Macromarketing, vol. 44, no. 2, 2023. doi: 10.1177/02761467231203311.
[14] N. S. Naharuddin, R. Abdul Rahim, and R. Ngah, "Determinants Impacting the Triple Bottom Line Sustainability Performance in SMEs: A Systematic Literature Analysis and Future Research Agenda," Adv. Soc. Sci. Res. J., vol. 11, no. 2.2, pp. 66-77, 2024, doi: 10.14738/assrj.112.2.16401.
[15] H. Fandeli et al., Sustainability dalam Manajemen UMKM: Perspektif Lingkungan, Sosial, dan Ekonomi. Medan: Yayasan Kita Menulis, 2025.
[16] R. V. Listanti, D. N. Fadillah, and R. Destiana, "Triple Bottom Line Study: Sustainability, Technology Utilization, and Social Media Effectiveness in MSMEs: A Case Study of MSMEs in Cirebon Regency," Indones. J. Adv. Res., vol. 3, no. 7, pp. 951-962, 2024 doi: 10.55927/ijar.v3i7.10123.
[17] J. B. Barney, D. J. Ketchen Jr, and M. Wright, "The future of resource-based theory: revitalization or decline?," J. Manage., vol. 37, no. 5, pp. 1299-1315, 2011. doi: 10.1177/0149206310391805.
[18] David, Robert J, Pamela S Tolbert, and Johnny Boghossian, 'Institutional Theory in Organization Studies' (23 Dec. 2019), in Donald D Bergh (ed.), Oxford Research Encyclopedia of Business and Management (New York, NY, online edn, Oxford Academic, 29 Mar. 2017, doi: 10.1093/acrefore/9780190224851.013.158.
[19] L. H. Al-Abbadi and A. R. Abu Rumman, "Sustainable performance based on entrepreneurship, innovation, and green HRM in e-Business Firms," Cogent Bus. Manag., vol. 10, no. 1, Dec. 2023, doi: 10.1080/23311975.2023.2189998.
[20] M. R. Linda, V. Pujani, Syafrizal, Ma'ruf, and S. Muhidin, "Enhancing Sustainable Performance in Hotel Industry: Supplier Innovativeness and Supply Chain Integration," J. Optimasi Sist. Ind., vol. 24, no. 1, pp. 140-155, Jun. 2025, doi: 10.25077/josi.v24.n1.p140-155.2025.
[21] A. A. Adamu, C. Y. Wan, and A. H. Gorondutse, "Determinants of Sustainable Performance of SMEs: A Proposed Framework," Int. J. Res. Sci. Innov. |, vol. 6, no. 6, pp. 182-188, 2019.
[22] S. Syahidun, V. Rivai, I. Siswanti, and L. C. Nawangsari, "Exploring Dimensions of Corporate Sustainability: A Literature Review," KnE Soc. Sci., vol. 10, no. 21, pp. 138-146, Sep. 2025, doi: 10.18502/kss.v10i21.19699.
[23] A. Alifwansyah, M. Al Musadieq, Z. Arifin, and S. Worokinasih, "A Systematic Review of Firm Sustainability Metrics: Analytical Approaches to Performance and Impact Assessment," KnE Soc. Sci., vol. 10, no. 13, pp. 118-133, Jun. 2025, doi: 10.18502/kss.v10i13.18945.
[24] [24] Shivani, S., S. Sharma, and S. Singh. 2025. "Linking Green Entrepreneurial Orientation to Sustainable Firm Performance: Insights From a Mixed Method Study." Business Strategy and the Environment34, no. 8: 10313-10348. doi: 10.1002/bse.70111.
[25] J. Martínez-Falcó et al., "Green Innovation: Integrating Economic Growth With Environmental Stewardship," in Green Supply Chain Management Practice and Principles, edited by Javier Martínez-Falcó, et al., IGI Global Scientific Publishing, 2024, pp. 150-167. doi: 10.4018/979-8-3693-3486-7.ch008
[26] Z. Hatipoğlu and G. Akduman, "The Mediating Role of Sustainable Leadership in Green Human Resource Management Practices and Organizational Commitment: A Case Study in Turkey," Sustain. 2025, Vol. 17, Page 4991, vol. 17, no. 11, p. 4991, May 2025, doi: 10.3390/su17114991.
[27] M. S. Islam, M. R. B. Rubel, and M. M. Hasan, "Environmental and Social Performance of the Banking Industry in Bangladesh: Effect of Stakeholders' Pressure and Green Practice Adoption," Sustain. 2023, Vol. 15, Page 8665, vol. 15, no. 11, p. 8665, May 2023, doi: 10.3390/su15118665.
[28] S. Adomako and M. D. Tran, "Sustainable environmental strategy, firm competitiveness, and financial performance: Evidence from the mining industry," Resour. Policy, vol. 75, p. 102515, Mar. 2022, doi: 10.1016/j.resourpol.2021.102515.
[29] J. H. Cheah, F. Magno, and F. Cassia, "Reviewing the SmartPLS 4 software: the latest features and enhancements," J. Mark. Anal., vol. 12, no. 1, pp. 97-107, Mar. 2024, doi: 10.1057/s41270-023-00266-y.
[30] Singh, S. K., Del Giudice, M., Chiappetta Jabbour, C. J., Latan, H., & Sohal, A. S. (2022). Stakeholder pressure, green innovation, and performance in small and medium-sized enterprises: The role of green dynamic capabilities. Business Strategy and the Environment, 31(1), 500-514. doi: 10.1002/bse.2906.
[31] S. K. Singh, M. Del Giudice, R. Chierici, and D. Graziano, "Green innovation and environmental performance: The role of green transformational leadership and green human resource management," Technol. Forecast. Soc. Change, vol. 150, p. 119762, Jan. 2020, doi: 10.1016/j.techfore.2019.119762.
[32] A. Lutfi, A. Al-Hiyari, I. A. Elshaer, M. Alrawad, and M. A. Almaiah, "Green environmental management system and environmental performance: Results from PLS-SEM and fsQCA," Sustain. Futur., vol. 8, p. 100276, Dec. 2024, doi: 10.1016/j.sftr.2024.100276.
[33] B. P. Komba, M. W. A. Chattha, A. Fatima, P. C. Thomson, L. A. González, and M. F. Hyder, "Assessing the environmental, economic, and social impacts of industrial mining on agricultural communities in Sierra Leone: A sustainable approach using PLS-SEM," Clean. Responsible Consum., vol. 16, p. 100250, Mar. 2025, doi: 10.1016/j.clrc.2025.100250.
[34] D. P. Faeni, R. P. Faeni, Basrowi, and Sungkono, "Green HRM for sustainable aviation: An integration evaluation using PLS-SEM and fsQCA," Environ. Challenges, vol. 20, p. 101232, Sep. 2025, doi: 10.1016/j.envc.2025.101232.
[35] R. Navarro, V. Vega, H. Bayona, V. Bernal, and A. Garcia, "Relationship between technology acceptance model, self-regulation strategies, and academic self-efficacy with academic performance and perceived learning among college students during remote education," Front. Psychol., vol. 14, p. 1227956, Aug. 2023, doi: 10.3389/fpsyg.2023.1227956.
[36] B. G. Tabachnick and L. S. Fidell, Computer-assisted research design and analysis. Allyn & Bacon: Inc., 2001. doi: 10.5555/556711.
[37] J. F. Hair Jr., G. T. M. Hult, C. M. Ringle, M. Sarstedt, N. P. Danks, and S. Ray, Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R. in Classroom Companion: Business. Cham: Springer Nature, 2021. doi: 10.1007/978-3-030-80519-7.
[38] C. Fornell and D. F. Larcker, "Evaluating Structural Equation Models with Unobservable Variables and Measurement Error," J. Mark. Res., vol. 18, no. 1, pp. 39-50, 1981. doi: 10.1177/002224378101800104
[39] J. E. Cohen, Statistical Power Analysis for the Behavioral Sciences. Hillsdale: NJ: Lawrence Erlbaum Associates, Inc., 1988. Doi: 10.4324/9780203771587.
[40] F. Stocker, M. T. Zanini, and H. A. Reis Irigaray, "The role of multi-stakeholders in market orientation and sustainable performance," Mark. Intell. Plan., vol. 39, no. 8, pp. 1091-1103, Oct. 2021, doi: 10.1108/MIP-05-2021-0157.
[41] C. Appiah-Nimo and M. Chovancová, "Improving firm sustainable performance: the role of market orientation," Proc. Int. Conf. Bus. Excell., vol. 14, no. 1, pp. 780-787, Jul. 2020, doi: 10.2478/picbe-2020-0074.
[42] R. E. Freeman, Strategic management: A stakeholder approach. In Strategic Management. 1984. doi: 10.1017/CBO9781139192675.
[43] L. Tan, "Improving Corporate Performance through Stakeholder-Based ESG Practices," J. Educ. Humanit. Soc. Sci., vol. 30, pp. 6-12, Apr. 2024, doi: 10.54097/jts5nw21.
[44] S. M. Bhatti, Z. Liao, S. Kanwal, and Z. K. Mohamed Makhbul, "Green Strategic Orientation, a Gateway to Achieve Sustainable Performance Through Green Innovation: Dataset of Manufacturing Firms in Pakistan," 2023, doi: 10.2139/ssrn.4663914.
[45] J. Lozano, J. C. Saenz-Díez, E. Martínez, E. Jiménez, and J. Blanco, "Methodology to improve machine changeover performance on food industry based on SMED," Int. J. Adv. Manuf. Technol., vol. 90, no. 9-12, pp. 3607-3618, 2017, doi: 10.1007/s00170-016-9686-x.
[46] R. Öztürk, M. Öztürk, and Z. Kızılkan, "Meta-Analysis of the Relationship Between Green Entrepreneurial Orientation and Sustainable Firm Performance," Sustain. 2024, Vol. 16, Page 11224, vol. 16, no. 24, p. 11224, Dec. 2024, doi: 10.3390/su162411224.
[47] D. A. Zonna Lia and R. Fitri, "Green Entrepreneurial Orientation and Green Innovation in SMEs: An Evidence from Systematic Literature Review and Opportunities for Future Research Agenda," J. Econ. Financ. Manag. Stud., vol. 06, no. 11, Nov. 2023, doi: 10.47191/jefms/v6-i11-25.
[48] B. Tuncer and E. Korchagina, "A Systematic Literature Review and Conceptual Framework on Green Entrepreneurial Orientation," Adm. Sci. 2024, Vol. 14, Page 109, vol. 14, no. 6, p. 109, May 2024, doi: 10.3390/admsci14060109.
[49] A. K. Ahmadi, D. Fakhira, N. I. Sahfira, R. N. Siahaan, N. Syahputri, and M. K. Sihotang, "Analisis Aspek Pasar sebagai Pilar Utama dalam Studi Kelayakan Bisnis untuk Mendukung Keberlanjutan Usaha," J. Manaj. dan Ekon. Kreat., vol. 3, no. 1, pp. 209-221, Jan. 2025, doi: 10.59024/jumek.v3i1.530.
[50] K. M. Kura, L. Raimi, “Linking green entrepreneurial orientation and green market orientation to firm sustainability performance: a three-level meta-analysis,” Discov Sustain 6, 1088 (2025). doi: 10.1007/s43621-025-01755-z.
[51] F. Erbetta. G. Abrate, "Unraveling the joint effect of firm and stakeholder pro-environmental engagement on firm economic rewards: an application to waste management services", Social Responsibility Journal, Vol. 21 No. 3 pp. 498-519, doi: 10.1108/SRJ-04-2024-0290.
Article Sidebar
Published
Jun 30, 2026
Article Details
How to Cite
[1]
H. Fandeli, M. Tomas, F. Qalbina, and N. F. Har, “Key Determinants of SMEs Sustainable Performance in West Sumatra: A PLS-SEM Analysis”, J. Optimasi Sist. Ind., vol. 25, no. 1, pp. 174–190, Jun. 2026.
Section
Articles
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Copyright Ownership
- Authors who publish their articles in Jurnal Optimasi Sistem Industri (JOSI) retain full copyright of their work.
- JOSI does not require authors to transfer their copyright to the journal or its publisher, Universitas Andalas. The authors grant JOSI a license for first publication.
All articles published in Jurnal Optimasi Sistem Industri (JOSI) are licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) license.
This means that users are free to:
- Share — copy and redistribute the material in any medium or format.
- Adapt — remix, transform, and build upon the material.
Under the following terms:
- Attribution (BY): You must give appropriate credit to the author(s) and JOSI as the original source of publication (including the article title, author(s) names, journal name, volume, issue, page numbers, year, and DOI), provide a link to the CC BY-NC-SA 4.0 license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- NonCommercial (NC): You may not use the material for commercial purposes.
- ShareAlike (SA): If you remix, transform, or build upon the material, you must distribute your contributions under the same CC BY-NC-SA 4.0 license as the original.
A link to the full license text should also be provided: https://creativecommons.org/licenses/by-nc-sa/4.0/
Funding data
-
Universitas Andalas
Grant numbers B/07/UN16.09/SPK/PT.01.03/RKAT-UNAND/2025