Sustainable Performance for Batik Small and Medium Enterprises Viewed from Dynamic Capabilities, Marketing Orientation and Green Marketing

Abstract

This research attempts to raise the issue of the sustainability of the micro-scale Batik industry in Indonesia, which is a subset of the textile industry, by utilizing a number of variables, such as 1) Dynamic capacity; 2) Marketing orientation with green marketing intermediaries, which can contribute to the sustainability of this sector. There has been much discussion about business sustainability in the textile sector. Still, research on the sustainability of small businesses in the batik sector by developing dynamic capabilities, marketing orienteation , and green marketing still needs to be discovered. This research explores the development of the sustainability of the small-scale batik industry by paying attention to green marketing indicators as a mediator of the dynamic capabilities and marketing capabilities carried out by small-scale batik companies. This research framework was developed using three independent variables (X) and one dependent variable (Y). The methodology used is a case study in 41 small-scale batik companies in Bogor—data collection using questionnaires and interviews. The data obtained was processed using the SEM-PLS (Partial Least Squares Structural Equation Modeling) method. The study results show a significant influence between Dinamic Capabilities (DC) on Sustainable Industry Performance (SIP), Marketing Orientation (MO) on Sustainable Industry performance (SIP), and Green Marketing (GMM) on Sustainable Industry Performance (SIP). But there is no significant effect between DC, GMM on SIP and MO, GMM on SIP.The small-scale batik SME sector still needs increased knowledge about green marketing to keep up with changes in behavior from consumers who have started to pay attention to environmentally friendly products.