How to business environment affect green innovation in small medium enterprises: Systematic literature review

¹ Doctor of Management Technology, Sepuluh Nopember Institute of Technology, Digital Business, State University of Surabaya, Surabaya, Indonesia
² Dept. Industrial and System Engineering, Sepuluh Nopember Institute of Technology, Surabaya, Indonesia
³ Dept. of Statistics, Sepuluh Nopember Institute of Technology, Surabaya, Indonesia

^* Corresponding author: hujjatullahfazlurrahman@unesa.ac.id

Abstract

This paper discovers the concept of green innovation in small and medium-sized enterprises (SMEs). The study deliberates on reputation of green innovation in promoting sustainable development and the need for SMEs to encirculate this practice. The paper offers an overview of the different types of green innovation and their significance in promoting environmental sustainability. It examines the challenges faced by SMEs in adopting green innovation practices, with limited resources and lack of awareness. Furthermore, the paper highlights the benefits of green innovation for SMEs, including increased competitiveness and improved brand image. The study achieves this by providing recommendations for SMEs on how to effectively instrument green innovation practices and strategies. Overall, this paper emphasizes the importance of SMEs role in promoting green innovation and sustainable development. This paper will also discuss the classification of internal and external influences of organizations in green innovation research. Internal organizational influences are classified into human resources, corporate culture, technical capabilities, organizational structure, vision, mission and objectives. The internal influence of the organization consists of political, economic, technology and regulation.