Transformation of Small Batik Industry in Bakorwil II East Java Through Green Innovation to Improve Marketing Performance

Abstract

This study aims to analyze the transformation of small batik industries in Bakorwil II East Java through green innovation in improving marketing performance. This study uses a quantitative approach with the Partial Least Squares-Structural Equation Modeling (PLS-SEM) method. The results of the analysis show that brand image (X4) has a positive and significant effect on green innovation (Z) with an original sample value (O) of 0.337 and a p-value of 0.000. Green innovation (Z) also has a positive and significant effect on marketing performance (Y) with an O value of 0.880 and a p-value of 0.000. However, price (X2) does not have a significant effect on green innovation (Z) with an O value of 0.102 and a p-value of 0.151. On the other hand, product quality (X1) and partnership (X3) have a positive and significant effect on green innovation (Z), each with an O value of 0.232 and 0.311 and a p-value of 0.002 and 0.000. In addition, green innovation (Z) is proven to mediate the relationship between brand image (X4), product quality (X1), and partnership (X3) on marketing performance (Y) significantly. However, green innovation (Z) does not mediate the relationship between price (X2) and marketing performance (Y). The...