THE EFFECT OF GREEN MARKETING ORIENTATION ON OPEN INNOVATION AND GREEN INNOVATION AS A MEDIATION: GREEN PERFORMANCE
Keywords:
Green Innovation, Green Marketing Orientation, Marketing Performance, Open Innovation, Sustainable Business Practices, SustainabilityAbstract
This study aims to analyse the influence of green marketing orientation on open innovation and green innovation and its impact on green performance, with open innovation and green innovation as mediating variables. This study uses a quantitative approach with modelling of structural equations using partial least squares (PLS-SEM) to test the hypothesis proposed. Data was collected through structured observations in 49 companies in Indonesia as well as secondary data from annual reports and related publications. The results of the study show that green marketing orientation has a significant effect on green innovation, which means that green marketing orientation encourages green innovation in the company (H1 is accepted). However, open innovation does not have a significant influence on green innovation, so the second hypothesis (H2) is rejected. Furthermore, this study revealed that green innovation has a significant influence on green performance, showing that the application of green innovation directly improves the company's green performance (H3 accepted). However, green marketing orientation did not have a significant effect on green performance, which showed that green marketing did not directly affect green performance (H4 was rejected). In contrast, open innovation has a significant influence on green performance, which indicates that companies that implement open innovation tend to experience an increase in green performance (H5 accepted). These findings provide important insights for companies on the importance of green marketing orientation and open innovation in improving green performance through green innovation. The practical implications of this study are the need for companies to focus more on developing effective green marketing strategies and integrating innovation as part of efforts to improve green performance
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