Predicting the Mediating Role of Green Innovation Moderated by ITC in the Relationship Between Green Entrepreneurial Orientation and Business Sustainability Performance

Abstract

This study examines how IT-enabled green innovation influences sustainability performance and green business practices. A novel ITC-moderated green innovation mediation model links green entrepreneurial mindsets to corporate sustainability performance. The Center for Crafts and Batik at the Ministry of Industry in Indonesia registered 176 batik MSMEs, 122 of which were chosen from East Java for this research. The data-gathering questionnaire passed the external model test, and the PLS-SEM analytical model fulfilled quantitative data standards. Findings show that a green entrepreneurial approach and IT skills boost green innovation and business sustainability. Innovation and technology also help maintain stakeholder ties. This study integrates social and environmental sustainability with business-responsive strategies to broaden stakeholder theory. The research further supports the Natural Resource-Based View (NRBV) by showing that green orientation and IT innovation may lead to sustainability and a competitive advantage based on natural resources beyond environmental responsibility. To succeed, Batik MSMEs must adopt a green entrepreneurial mentality that addresses social and environmental consequences at every strategic level. SMEs could also improve their IT and collaborate with stakeholders to generate green innovation and income.