Green Process Innovation on Msmes Performance Moderate Perceived Environmental Volatility: Study on Food and Beverage MSMEs in Solo City

Abstract

Based on Stakeholder Theory and Social Cognitive Theory. This research aims to determine the influence of the relationship between green process innovation on the performance of MSMEs and moderating perceived environmental volatility. This research uses a survey. Research population of MSME owners in Solo City, Indonesia. Convenience sampling was used with a sample size of 120 respondents. Data analysis used PLS-SEM version 3.0. The research results show that green transformational leadership has a significant effect on the performance of MSMEs. Green process innovation has a significant effect on the performance of MSMEs. Moderation of perceived environmental volatility in the relationship between green process innovation has a significant effect on the performance of MSMEs and has a positive but not significant effect. The current research provides useful insights into green process innovation and perceived environmental volatility that can improve MSME performance