Enhancing Business Sustainability of Food and Beverage SMEs through Green Manufacturing Implementation
DOI:
https://doi.org/10.35308/jbt.v12i1.302Keywords:
Business Sustainability, Food and Baverage, Madura Island, SDGsAbstract
Environmental degradation has emerged as a critical global issue, particularly due to the escalating accumulation of single-use plastic waste generated across various industrial and commercial sectors. Within this context, Small and Medium-sized Enterprises (SMEs), especially those operating in the food and beverage industry, contribute substantially to environmental pollution through the extensive utilization of disposable plastic packaging. Despite growing environmental concerns and increasing public awareness regarding sustainable production practices, the adoption of environmentally responsible manufacturing systems among SMEs remains relatively limited. Therefore, this study aims to examine the implementation of green manufacturing practices and analyse their influence on business sustainability among food and beverage SMEs in Bangkalan Regency, Indonesia. This research adopts a quantitative research design and employs the Structural Equation Modelling–Partial Least Squares (SEM-PLS) approach to evaluate the relationships among strategic orientation, green awareness, green knowledge, green manufacturing, and business sustainability. Primary data were collected through structured questionnaires distributed to 44 SMEs operating within the food and beverage sector. The empirical findings indicate that strategic orientation and green awareness are positively associated with both green manufacturing practices and business sustainability. Conversely, initial estimations show an inverse association between green knowledge, green manufacturing, and business sustainability, which reflects resource constraints faced by SMEs rather than a direct negative impact.This study provides practical implications for policymakers, local governments, and SMEs in designing more effective sustainability-oriented policies, environmental training programs, and green innovation strategies aimed at strengthening environmentally responsible business practices in the food and beverage sector.
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