Achieving Craft MSME Competitiveness through Entrepreneurial Orientation and Green Innovation: Does Gender Matter?

Yuli Soesetio, Budi Eko Soetjipto, Puji Handayati, Agung Winarno, Fajar Palguna Wijaya


MSMEs are a sector that absorbs the most significant number of workers and is a pillar of the economy of countries worldwide, proving that they have always been able to survive and thrive during the global crisis. This study investigates the relationship between entrepreneurial orientation and green innovation in creating MSME competitiveness and explores the role of gender as a moderator of the relationship between entrepreneurial orientation and green innovation. This study used a sample of 403 craft MSMEs in West Java, Indonesia. The data analysis technique uses SEM AMOS 24 with stages of construct validity and reliability testing, path analysis, and multigroup analysis. The empirical results of this study show that entrepreneurial orientation and green innovation have a significant positive association with MSMEs' competitiveness. Furthermore, efforts to create competitiveness for MSMEs come directly or indirectly from the entrepreneurial orientation and green innovation of MSME owners. Interesting findings from the multigroup analysis showed that female craft owners have a higher influence on the relationship between entrepreneurial orientation and green innovation than male craft managers. While many researchers have identified the factors that drive the competitiveness of MSMEs, previous studies have not yet reached a conclusive point about the driving factors for MSME competitiveness and the influence of the owner’s gender, especially during the post-Covid-19 pandemic revival. Thus, this study aims to investigate the factors that affect MSME competitiveness. The scientific novelty of this paper lies in its analysis of the factors that influence MSME competitiveness and explores the role of gender as a moderator of the relationship between entrepreneurial orientation and green innovation. This research provides consideration contributions for creative economy institutions in developing MSME development programs. These findings broaden our understanding of the application of entrepreneurial orientation and green innovation to achieve firm competitiveness.


Keywords: entrepreneurial orientation, green innovation, firm competitiveness, gender.



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