Green Entrepreneurial Orientation and Business Sustainability among Halal Small and Medium Enterprises

Rahmat Hariadi; Andri Akbar; Randa Dwi Pramuji

Authors

Rahmat Hariadi Department of Management, Universitas Negeri Surabaya, Surabaya, Indonesia
Andri Akbar Department of Management, Universitas Negeri Malang, Malang, Indonesia
Randa Dwi Pramuji Department of Management, Universitas Negeri Jakarta, Jakarta, Indonesia

Keywords:

green entrepreneurial orientation, business sustainability, halal small and medium enterprises, sustainable entrepreneurship, halal SMEs

Abstract

Business sustainability has become a strategic priority for Small and Medium Enterprises (SMEs) as increasing environmental challenges, stakeholder expectations, and market competition require firms to integrate sustainability into their business strategies. Within the halal industry, achieving long-term sustainability requires organizations to combine environmental responsibility with Islamic ethical principles. This study aims to examine the effect of Green Entrepreneurial Orientation on Business Sustainability among Halal Small and Medium Enterprises in Indonesia. A quantitative explanatory research design was employed using a cross-sectional survey approach. Data were collected from 286 owners and managers of Halal SMEs through structured questionnaires using a five-point Likert scale. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The findings indicate that Green Entrepreneurial Orientation has a positive and statistically significant effect on Business Sustainability. Enterprises demonstrating higher levels of green innovativeness, green proactiveness, and green risk-taking achieve stronger economic, environmental, and social sustainability performance. The measurement and structural models also satisfy the recommended reliability, validity, and predictive assessment criteria, confirming the robustness of the proposed model. This study contributes to the entrepreneurship and sustainability literature by extending the application of Green Entrepreneurial Orientation within the context of Halal SMEs and integrating environmental entrepreneurship with Islamic business values. The findings provide practical implications for entrepreneurs and policymakers in promoting sustainable business practices and strengthening the competitiveness of the halal industry while supporting long-term sustainable economic development.

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