Fostering Sustainable Business Innovation among Indonesian SMEs: The Roles of Sustainable Entrepreneurial Orientation, Psychological Safety, & Knowledge Sharing Capability
DOI:
https://doi.org/10.31940/jbk.v22i1.40-57Keywords:
Sustainable Entrepreneurial Orientation, Psychological Safety, , Sustainable Business Innovation,, Knowledge, Sharing CapabilityAbstract
This study aims to analyze the role of sustainable entrepreneurial orientation and psychological safety on sustainable business innovation among SMEs in Indonesia. This study also examines the moderating effect of knowledge sharing capability in this relationship. The background of the problem underscores the urgency for SMEs to integrate social and environmental dimensions to foster sustainable innovation rather than merely pursue short-term economic gains. A quantitative explanatory approach was used by distributing a Likert-scale questionnaire to MSME actors. The data were then analyzed using Partial Least Squares-based Structural Equation Modeling in WarpPLS. The analysis shows that sustainable entrepreneurial orientation and psychological safety have a positive, significant influence on sustainable business innovation. The knowledge sharing capability variable was found to have no significant direct influence on sustainable business innovation. However, this knowledge sharing capability successfully strengthened the influence of strategic orientation and psychological safety on the achievement of sustainable innovation. These findings confirm that knowledge-sharing capability is purely a reinforcing catalyst. In practical terms, MSME actors need to strengthen their sustainable entrepreneurial orientation and build a psychologically safe work environment. This must be supported by functional knowledge sharing mechanisms so that every idea can be transformed into innovations that have economic, social, and environmental impacts.
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