Sustainability Innovation in Small Medium Enterprises (SMEs): A Qualitative Analysis

Authors

Budi Harsanto, Universitas PadjadjaranFollow
Asep Mulyana, Universitas PadjadjaranFollow
YUDI AHMAD FAISAL Mr, Universitas PadjadjaranFollow
Venny Mellandhia Shandy, Lembah Dempo UniversityFollow
Muntasir Alam, Lancaster UniversityFollow

Abstract

Prior research suggests that today, sustainability is an important key in innovation. While the integration of sustainability into innovation in large enterprises has been widely studied, research on small-medium enterprises (SMEs) is still lacking. The aim of this study is to understand the sustainability innovation practices in SMEs. We interviewed 30 SME owners and managers in Indonesia and analyzed the data using thematic analysis to understand how SMEs practice sustainability innovation. The findings show that sustainability innovation in the form of product innovation is commonly practiced through the use of more environmentally friendly raw materials and packaging materials. As for process innovation, the practices include local sourcing and empowerment of the surrounding community as well as small-scale waste treatment to help reduce the damaging impact on the environment.

Keywords

sustainability innovation, small medium enterprises (SMEs), generic interpretive qualitative study, interview, thematic analysis

Author Bio(s)

Budi Harsanto is a lecturer and researcher at the Faculty of Economics and Business, Padjadjaran University, in Bandung, West Java, Indonesia. He holds a PhD from the University of Liverpool, England, with a research interest in sustainability innovation and operations and supply chain management. Corresponding author email: budi.harsanto@unpad.ac.id

Asep Mulyana is a lecturer and researcher at the Faculty of Economics and Business, Padjadjaran University, in Bandung, West Java, Indonesia. He holds a doctoral degree from IPB University, Indonesia with research interest in SMEs and entrepreneurship.

Yudi Ahmad Faisal is a lecturer and researcher at Faculty of Economics and Business, Padjadjaran University, in Bandung, West Java, Indonesia. He holds a PhD from Western Sydney University, Australia with research interest in Islamic finance and social enterprises.

Venny Mellandhia Shandy is a lecturer at Faculty of Economics and Business, Lembah Dempo University, in Pagaralam, South Sumatra, Indonesia. She holds a master’s degree from Padjadjaran University, Indonesia with research interest in Marketing Management.

Muntasir Alam is a senior teaching associate at the Lancaster University Management School, Lancaster University, UK.

Acknowledgements

This work was supported by RKDU Grant from the Directorate of Research and Community Service, Universitas Padjadjaran, Indonesia.

Publication Date

11-4-2023

Creative Commons License

This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 4.0 International License.

DOI

10.46743/2160-3715/2023.6193

Recommended APA Citation

Harsanto, B., Mulyana, A., FAISAL, Y. A., Shandy, V., & Alam, M. (2023). Sustainability Innovation in Small Medium Enterprises (SMEs): A Qualitative Analysis. The Qualitative Report, 28(11), 3257-3271. https://doi.org/10.46743/2160-3715/2023.6193

ORCID ID

orcid.org/0000-0002-0732-0993