Revitalizing batik competitiveness through green branding, eco-innovation, and circularity
Keywords:
Green branding, Eco-innovation, Circular economy, Competitiveness, Batik SMEsAbstract
Sustainable practices are increasingly recognised as important drivers of business performance in contemporary markets. This study examines the influence of green branding, eco-innovation, and the circular economy on the competitiveness of batik SMEs, a representative emerging economic context in Indonesia. The relationships between these constructs were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results indicate that green branding, eco-innovation, and the circular economy have a significant and positive influence on the competitiveness of batik SMEs. Batik SMEs that are more environmentally friendly, more innovative, and more circular will have a higher level of competitiveness than SMEs that do not implement these practices. These findings indicate that sustainability practices based on green branding, eco-innovation, and the circular economy not only provide environmental benefits but also serve as key drivers of increasing the competitiveness of batik SMEs. In other words, the higher the level of consistency in implementing environmentally friendly strategies, the greater the capacity of batik SMEs to compete in both local and global markets. This research reinforces the theory and practice that sustainability is one of the most strategic sources of competitiveness for batik SMEs. These findings provide direction for future batik business models and confirm that sustainability programmes not only impact the environment but also enhance local competitiveness.
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