GREEN INNOVATION CAPABILITY AS DRIVER OF SUSTAINABLE COMPETITIVE ADVANTAGES AND SMES MARKETING PERFORMANCE

The purpose of this study was to test the capability of green innovation as the driving factors of sustainable competitive advantage and SMEs marketing performances. Samples in this study were 151 owners of SMEs. The selected sample were SMEs which focused on environmental concerns. The analysis used in this study was the structural equation modeling. To analyze the data, the AMOS version 20 was used as a tool for testing data. The results of this study indicated that (1) the relationship learning and culture of proactive green innovation can improve the relationship learning significantly, (2) green innovation capability is able to improve sustainable competitive advantage significantly, and (3) sustainable competitive advantage can improve SMEs marketing performance significantly. Managerial implication in this research are as follows: (1) to improve green innovation capabilities, proactive culture is needed in developing greening in business. (2) Green innovation capabilities will increase if the SMEs focus on relationship learning.