The influence of strategic flexibility on green business performance mediated by eco innovation and green manufacturing

Gusti Kurnia Dwiputra; Wahdiyat Moko; Christin Susilowati

doi:10.20525/ijrbs.v14i4.4223

Authors

Gusti Kurnia Dwiputra Brawijaya University https://orcid.org/0009-0009-4757-8030
Wahdiyat Moko University of Brawijaya
Christin Susilowati University of Brawijaya

DOI:

https://doi.org/10.20525/ijrbs.v14i4.4223

Keywords:

Strategic Flexibility, Green Business Performance, Eco Innovation, Green Manufacturing

Abstract

The study aims to examine and analyze the role of strategic flexibility on green business performance with eco innovation and green manufacturing as mediating variables. This research adopts a quantitative approach with a purposive sampling technique. The object of the study is manufacturing companies in East Java that are registered under the PROPER program. A total of 136 respondents participated in this study. Data were collected using a questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The research results show that strategic flexibility significantly influences green business performance, strategic flexibility has a significant effect on eco innovation, strategic flexibility significantly affects green manufacturing, eco innovation and green manufacturing positively influence green business performance, and eco innovation and green manufacturing partially mediate the effect of strategic flexibility on green business performance. The importance of green business performance lies in its ability to support long-term environmental and economic sustainability through innovation and operational transformation. Companies with greater flexibility are more likely to adopt green practices and respond to dynamic environmental changes effectively. This research makes a theoretical contribution by supporting the Resource-Based View (RBV), which highlights the importance of internal resources and capabilities in achieving sustainability goals. Practically, the study provides insights for companies to strengthen strategic adaptability and promote innovation-driven environmental practices.

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