Eco-Engineering Orientation as a Driver of Circular Innovation and Green Venture Performance in Engineering SMEs
Description
This study adopts a quantitative research design to examine the relationships among Eco-Engineering Orientation, Circular Process Innovation, and Green Venture Performance. The research focuses on engineering-based small and medium enterprises operating in manufacturing, fabrication, construction materials, and agro-processing sectors in Indonesia. These sectors were selected because they are characterized by intensive resource utilization and increasing pressure to adopt sustainable production practices. Engineering SMEs in these sectors are also actively involved in process innovation and technological adaptation, making them suitable contexts for examining eco-engineering and circular innovation practices. Primary data were collected through a structured questionnaire distributed to owners or managers of SMEs. Respondents were selected because they possess decision-making authority and knowledge regarding engineering practices, innovation activities, and sustainability initiatives within their firms. The survey employed a five-point Likert scale ranging from 1 (strongly disagree) to 5 (strongly agree) to measure respondents’ perceptions of the constructs under investigation. The measurement items were adapted from established literature to ensure construct validity. Eco-Engineering Orientation was measured using indicators reflecting the integration of environmental considerations into engineering and production decisions, including environmental commitment in production design, energy efficiency orientation, waste reduction practices, and environmentally responsible engineering decisions. These items were adapted from environmental strategy and eco-innovation studies. Circular Process Innovation was measured through indicators capturing firms’ adoption of circular production practices such as waste reuse, material recycling, resource efficiency improvements, eco-efficient production processes, and closed-loop manufacturing systems. These indicators were adapted from circular economy and eco-innovation research. Green Venture Performance was measured using indicators reflecting sustainability outcomes of the firm, including improvements in resource efficiency, reduction of environmental impact, cost savings from sustainable production practices, and long-term sustainability performance. These indicators were adapted from sustainability performance and natural resource-based view literature.