Exploring the Relationships Between Green Innovation, Sharia-Based Marketing Strategy, and MSME Sustainability
DOI:
https://doi.org/10.54471/iqtishoduna.v15i2.3880Keywords:
green innovation, sharia-based marketing, MSME sustainability, islamic business ethics, PLS-SEMAbstract
Background and research gap - The integration of green innovation and Sharia-based marketing in enhancing micro, small and medium-sized enterprise (MSME) sustainability remains underexplored, particularly in emerging economies where environmental responsibility and Islamic business ethics intersect.
Purpose – This study examines the relationships between green innovation, Sharia-based marketing strategy and MSME sustainability in Banjarmasin, Indonesia.
Design/methodology/approach – A quantitative survey involving 100 MSME owners and managers selected through non-probability sampling was conducted. Data were analysed using partial least squares structural equation modelling (PLS-SEM)
Key Findings – Green innovation positively influences MSME sustainability (β = 0.471, t = 5.289, p < 0.001), as does Sharia-based marketing strategy (β = 0.328, t = 3.815, p < 0.001). Green innovation also positively influences Sharia-based marketing strategy (β = 0.576, t = 8.133, p < 0.001). The model explains 50.7% of the variance in MSME sustainability (R² = 0.507).
Research limitations/implications – The geographically restricted sample and non-probability sampling limit generalisability. The findings encourage MSMEs to integrate environmentally responsible innovation with ethical marketing practices.
Originality/value – This study provides empirical evidence of the interconnected roles of green innovation and Sharia-based marketing in MSME sustainability, contributing to an integrated understanding of environmental innovation and Islamic business ethics.
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