The Role of Eco-Intellectual Capital And Eco-Dynamic Capability On MSMEs’ Sustainability Performance
Keywords:
Eco-Intellectual Capital, Eco-Dynamic Capability, Sustainability Performance, MSMEAbstract
MSMEs play a significant role in the Indonesian economy, contributing 60.5% to GDP and accounting for 97% of total national employment. Given their crucial role, sustainability of MSMEs is an essential thing. This study examined the effect of eco-intellectual capital on the sustainability performance of Micro, Small and Medium Enterprises (MSMEs) and determine the moderating role of eco-dynamic capability on eco-intellectual capital and MSMEs’ sustainability performance. The study sample consisted of 149 MSMEs in Bangko District, Rokan Hilir Regency, Riau Province. This study use quantitative method which employs a questionnaire-based data collection method, with questionnaires distributed directly to respondents. The study uses simple linear regression and moderated regression to analyse data. The results showed that eco-intellectual capital significantly influences MSMEs’ sustainability performance and eco-dynamic capability moderate the influence of eco-intellectual capital on MSMEs’ sustainability performance. These findings have implication for owner of MSMEs that MSMEs should know how to use their ec0-intellectual capital well and should have eco-dynamic capability to enhancing MSMEs sustainability performance.
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